South Korea Orders Exchanges to Halt Crypto Lending After $1.1B Boom
South Korea’s top financial regulator has ordered local exchanges to suspend their fast-growing crypto lending services, citing legal uncertainty and mounting risks for retail investors.
FSC pushes pause on lending
The Financial Services Commission (FSC) confirmed Tuesday that it had issued formal guidance to all licensed digital asset platforms to halt lending operations until a clear regulatory framework is in place. The move follows the explosive growth of exchange-backed lending products, which had quickly attracted tens of thousands of users in July.
The lending services, rolled out by major platforms including Upbit and Bithumb, allowed customers to borrow against their deposits in Korean won or cryptocurrencies…
