South Korea prevents lending services star-news.press/wp

The financial authority in South Korea ordered to stop all the lending on the local stock exchanges, saying that fast -growing products lack the appropriate rules and pose risks.

The Financial Services Committee (FSC) issued Administrative guidance This applies immediately and will remain in place until the new lending rules are written.

The organizer moves to stop the coding lending

According to FSC, the stock exchanges must suspend services that allow users borrowing against Encryption Or deposits Fiat. Current loans are not eliminated; Bayers can still pay or extend the current contracts.

Reports say it is an administrative step, not a criminal embargo, but the platforms you ignore may face searches on the site from the authorities.

South Korea confirms that the only “investment” from which the United States graduated is in the form of high interest rates.

Just like Japan. pic.twitter.com/redeup8dvc

Spencerhakimian August 4, 2025

Quick absorption and large numbers

Based on reports, lending offers exploded after early July. Upbit I launched a program that allows customers to borrow up to 80 % of the value of their deposits, using USDT, Bitcoin and XRP as a guarantee.

competition Petomb She made loans up to four times the customer’s possessions, and soon followed by other local platforms.

The first month of one company attracted approximately 27,600 investors who borrowed about 1.5 trillion Won ($ 1.1 billion), according to the organization. FSC added that market fluctuations paid about 13 % of these borrowers to liquidate.

BTCUSD trading at $115,564 on the 24-hour chart: TradingView

References and stablecoin

Reports revealed an extraordinary sale in USDT Located to the lending payment, this move disturbed the prices of Stablecoin for a short period on some Korean platforms.

Forced candidates and sudden impulsivity for sale can inflate the losses for ordinary users, which is exactly what reduces organizers. This combination of heavy borrowing and stress in the market is what the FSC mark has been anxious.

Exchange of the axis as the rules waved on the horizon

Upbit and Bithumb had already stopped lending once in July; Bithumb later resumed with more strict conditions before this new comment.

At the same time, industrial players are preparing for more organized business: CompassionateWhich runs Upbit, unveiled the nursery service that stores assets in a cold governor for institutional and institutions.

Reports also indicate the ruling party The basic law of digital assetsA proposal that would formally allow lending services within exchanges – but once the rules are set.

Pay for the rules while opening new doors

Officials say they will move quickly to create a clear rules book to lend digital assets to protect users and maintain steady markets.

South Korea seems to relieve other restrictions: the authorities wipe the road for the first encryption boxes in the country and work on an equal framework.

This explains the organizers who want to encourage safer forms of access to encryption, while reducing the most dangerous retail products.

A distinctive image of the ruling, the graph from TradingView

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