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South Korea Halts New Crypto Lending, Guidelines in the Works

August 19, 2025Updated:August 19, 2025No Comments2 Mins Read
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South Korea Halts New Crypto Lending, Guidelines in the Works
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South Korea Halts New Crypto Lending, Guidelines in the Works

South Korea’s high monetary regulator ordered crypto exchanges to droop new digital asset lending providers, citing mounting dangers and highlighting a necessity for clear guidelines. 

The Monetary Providers Fee (FSC) stated on Tuesday that it despatched letters to exchanges requesting the suspension of latest crypto lending till it completes tips. Present contracts, like repayments and maturity extensions, will likely be permitted. 

On July 31, the FSC and the Monetary Supervisory Service (FSS) introduced they’d shaped a joint activity drive to develop a regulatory framework for crypto lending. The rules are anticipated to cowl leverage limits, consumer eligibility and danger disclosures for digital asset lending actions.  

The FSC stated it could conduct on-site inspections and take supervisory motion in opposition to platforms that didn’t comply.