Asia Crypto News: Korea Orders Halt to New Crypto Lending as Leverage Risks Build

Asia Crypto News: Korea Orders Halt to New Crypto Lending as Leverage Risks Build

Regulators froze new lending products after forced liquidations and market distortions, but some analysts say improvements, not shutdowns, are the smarter path forward.

South Korea Halts Crypto Lending as Market Leverage Sparks Regulatory Concern - WorldNL Magazine

In brief South Korea has temporarily suspended new crypto lending services, citing a lack of user protection. This development comes after a recent incident at Bithumb that resulted in widespread liquidations. Analysts suggest the accumulation of leverage has made the crypto market more fragile and susceptible to liquidation risks. South Korean financial authorities have temporarily suspended new crypto lending services in a direct response to a…

South Korea Freezes Crypto Lending After Bithumb Liquidations Shake Market » News.ng

South Korea has hit the brakes on new crypto lending services, citing mounting concerns over investor safety and excessive market leverage. The move follows a major liquidation event at domestic exchange Bithumb that left thousands of traders facing forced sell-offs. The country’s Financial Services Commission (FSC) announced that new crypto lending products will remain on hold until it finalises its Virtual Asset Rental Service Guidelines. Regu…

South Korea Directs Exchanges To Suspend Crypto Lending

South Korea, which is a world leader in the use of cryptocurrencies, has taken a brave step to deal with problems in its digital asset market. The Financial Services Commission (FSC) has told cryptocurrency exchanges to stop launching new lending products because they pose high risks to investors and the stability of the system.  This action is a response to a recent wave of liquidations and rising debt in the crypto sector, indicating that Sout…

South Korea Halts Crypto Lending as Market Leverage Sparks Regulatory Concern

South Korea's pause on crypto lending after a major liquidation event highlights a global trend of rising market leverage.

South Korea Orders Crypto Exchanges to Halt Lending Services Amid Regulatory Crackdown

South Korea’s financial regulator has issued a sweeping directive ordering domestic cryptocurrency exchanges to suspend all crypto lending services, citing mounting risks to investors and concerns over market stability. The Financial Services Commission (FSC) said the decision was made after identifying potential threats posed by lending products that operate in a legal gray area and […]