Korea Stops Local Exchanges From Crypto Lending Services

2025-8-20 04:20

South Korea’s government requested local exchanges to stop crypto lending services that have been in place since last month.

The Financial Services Commission and Financial Supervisory Service issued a press release on Tuesday. They said they sent an official letter asking local crypto exchanges to suspend new lending services until regulators finalize guidelines.

Although Crypto Lending Was Successful

Major South Korean crypto exchanges, including Bithumb and Upbit, launched the services on the 5th of last month. The exchanges’ new business was booming even in the early phase, with 27,600 users utilizing 1.5 trillion KRW worth of lending services in just one month.

Before this service, local traders on domestic exchanges lacked a proper hedge against falling crypto prices. However, with this product, which has the characteristics of a derivative, users could take out a crypto loan to profit when they expected prices to fall.

Recently, Korean crypto exchanges began offering crypto lending services with crypto or fiat as collateral. Regulators warned that users may suffer losses from these services.

The Korean Government is Concerned About Consumer Protection

Financial authorities raised concerns that 13% of the service’s users experienced forced liquidation. They argued this happened because those crypto lending services lacked sufficient consumer protection measures.

Authorities also explained that, following the launch of USDT lending services, the volume of Tether sell-offs surged, causing the Tether price to decline unusually. This resembles a reverse-Kimchi Premium, unlike the usual premium where Bitcoin or Ethereum trade higher in Korea.

A financial authority official stated, “If new businesses continue to operate without appropriate user protection measures, there is a risk that user losses will accumulate before guidelines are established. New businesses seeking to enter the market also request clear guidelines for predictability.”

Yet, among the crypto communities, there are voices that the government’s action cared too little about crypto’s volatile nature. Critics also say that Kimchi Premium stopped after derivatives became possible, so it is right to say that the government should lift the ban on such services.

The financial authorities plan to conduct on-site inspections of businesses if new operations continue after administrative guidance and user losses are anticipated.

The post Korea Stops Local Exchanges From Crypto Lending Services appeared first on BeInCrypto.

origin »

Mega Lottery Services Global (MLR) íà Currencies.ru

$ 0 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 0.89 %
Cåãîäíÿ L: $0 - H: $0
Êàïèòàëèçàöèÿ $0 Rank 99999
Öåíà â ÷àñ íîâîñòè $ 0.0029261 (-100%)

services korea financial lending crypto exchanges local

Èñòî÷íèê: beincrypto.com

services korea → Ðåçóëüòàòîâ: 126


China’s crypto exchange BTCC will launch trading services in South Korea next month

BTCC, China’s first Bitcoin (BTC) exchange, is set to launch trading services in South Korea, Korean business outlet The Investor reported on October 16. BTCC, which presently has headquarters in Hong Kong, will reportedly start beta services for trading in South Korea later this month and make its official debut in the market in November. […]

2018-10-22 12:05


Ôîòî:

South Korea Stands Firm: Won’t Legalize ICOs For Now

South Korea stood its ground on the matter of legalizing initial coin offerings (ICOs), reaffirming the ban that the country instituted last fall. ICO Ban Stands The Financial Services Commission (FSC) – South Korea’s top financial regulator — reaffirmed October 11 that the country will maintain its position on initial coin offerings and keep them outlawed.

2018-10-12 20:00


Ôîòî:

South Korean Exchange Bithumb Sells To Singapore Investor For $353 Million

Bithumb, South Korea’s largest cryptocurrency exchange by volume, has sold to a Singapore entity with the aim of releasing new services and stablecoins.   Officials Finalize Majority Stake Deal As Korean news outlet Naver reports October 12, BK Global Consortium paid 400 million won ($353 million) for a majority stake in Bithumb, having previously held a minority position in the company.

2018-10-12 10:30


South Korean Regulator Compels Lawmakers to pass the crypto bill urgently

Regulation South Korea’s top financial regulator has urged lawmakers to pass the country’s first crypto bill quickly, citing the urgent need from rising incidents at crypto exchanges. Japan Confirms Entrance Into the Crypto Space Crypto Law Urgently Needed South Korea’s top financial regulator, the Financial Services Commission (FSC), has urged lawmakers to “pass the country’s

2018-7-28 11:06


Ôîòî:

South Korea to Establish Digital Currency Policy-Making Department

South Korea’s financial authority confirmed on July 19, 2018, the implementation of a policymaking department focused exclusively on blockchain technology and related domains. Rising Technology “Leads Financial Innovation” As reported on The Korea Times, the country’s Financial Services Commission decided after careful consideration of the burgeoning blockchain industry and a crucial need for regulation to […] The post South Korea to Establish Digital Currency Policy-Making Department appeared first on CryptoSlate.

2018-7-23 09:00


South Korean financial regulator to fit cryptocurrency innovation in its new structure

According to Forbes, the Financial Services Commision [FSC], South Korea’s financial regulatory authority is looking to develop the cryptocurrency and blockchain space. The FSC plans to do this by restructuring itself to accommodate the existence of the Financial Innovation Bureau and to ‘proactively respond to financial innovation in the fourth industrial revolution era’. In a […]

2018-7-22 06:28


South Korea’s Finance Watchdog’s New Crypto Division

South Korea’s Financial Services Commission (FSC) has revealed it is setting up a department dedicated primarily to cryptocurrencies and blockchain. The FSC said the new department – dubbed the Financial Innovation Bureau – will focus on developing policy-making initiatives for the domestic blockchain and fintech industry, The Korea Times reported on Thursday. The decision to set up the

2018-7-20 21:30


Ôîòî:

Crypto Exchange Bithumb prevents retreats after the $ 31 million hack

Bithumb, one of the largest cryptocurrency exchanges in South Korea by trading volume, is halting deposit and withdrawal services after hackers stole 35 billion won ($31 million) from the platform. The company said in an announcement today that the hack happened between late Tuesday night and early Wednesday morning local time. Although Bithumb has yet to

2018-6-20 13:29


äàëüøå åùå 77 íîâîñòåé →

Ïàðòíåðû Currencies.ru



Ðåêëàìà íà Currencies.ru

Ñàìîå ñâåæåå íà Currencies.ru

Koreans Abandon Tesla for Crypto Bets: $657M Exodus Reshapes Markets

Korean retail investors pulled $657 million from Tesla while investing $12 billion in US crypto companies, with August seeing record flows into Bitmine, Circle, and Coinbase. The post Koreans Abandon Tesla for Crypto Bets: $657M Exodus Reshapes Markets appeared first on BeInCrypto.

Upbit to Follow Binance in Listing Caldera, ERA Soars 60%

Caldera (ERA) surged 60% after Upbit announced its listing, following its inclusion in Binance’s HODLer airdrops. ERA is gaining significant attention from traders. The post Upbit to Follow Binance in Listing Caldera, ERA Soars 60% appeared first on BeInCrypto.

South Korea Forces Google to Block 17 Foreign Crypto Exchanges

South Korea’s crackdown on unregistered foreign exchanges like KuCoin and MEXC strengthens local platform Upbit’s dominance while pushing for stricter regulatory control and investor protection. The post South Korea Forces Google to Block 17 Foreign Crypto Exchanges appeared first on BeInCrypto.