{"id":26258,"date":"2025-08-19T21:23:38","date_gmt":"2025-08-19T18:23:38","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=26258"},"modified":"2025-08-22T17:37:07","modified_gmt":"2025-08-22T14:37:07","slug":"south-korean-exchanges-ordered-to-halt-crypto-lending","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/south-korean-exchanges-ordered-to-halt-crypto-lending\/","title":{"rendered":"South Korean Exchanges Ordered to Halt Crypto Lending"},"content":{"rendered":"<p>South Korea&#8217;s Financial Services Commission (FSC) <a href=\"https:\/\/www.fsc.go.kr\/no010101\/85116\">has ordered<\/a> local digital asset exchanges to temporarily suspend crypto lending operations.<\/p>\n<p>The regulator issued administrative guidelines to platforms to wind down such services starting from August 19, until the country establishes an appropriate regulatory framework for the sector.<\/p>\n<p>Extensions of existing contracts and repayments are permitted. The FSC stated it will conduct inspections and take action against platforms that do not comply with the requirements.<\/p>\n<p>This move follows reports of significant losses among users, including thousands of cases of forced liquidation under crypto exchange lending programs.<\/p>\n<p>According to the FSC, one unnamed platform attracted approximately 27,600 users within a month of launching its lending service. It is likely referring to <a href=\"https:\/\/www.koreatimes.co.kr\/business\/banking-finance\/20250730\/upbit-bithumb-face-regulatory-scrutiny-over-leveraged-coin-lending\">Upbit or Bithumb<\/a>.<\/p>\n<p>The trading volume on the platform was about 1.5 trillion Korean won (~$1.1 billion). Approximately 13% of clients, or 3,635 individuals, faced forced liquidation due to the decline in the value of their cryptocurrency positions.<\/p>\n<p>The regulator added that shortly after exchanges introduced lending services in USDT, a surge in sell orders led to a drop in the stablecoin&#8217;s price on the platforms, causing disruptions.<\/p>\n<p>Upbit and Bithumb had already suspended their services, although the latter later resumed them under stricter conditions.<\/p>\n<p>In late July, the Bank of South Korea <a href=\"https:\/\/forklog.com\/en\/news\/asian-nations-tighten-cryptocurrency-regulations\">established<\/a> a new unit to monitor the crypto market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Korea&#8217;s Financial Services Commission ordered local digital asset exchanges to temporarily suspend crypto lending operations.<\/p>\n","protected":false},"author":1,"featured_media":26259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"South Korea's Financial Services Commission ordered exchanges to halt crypto lending.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1097,36,974],"class_list":["post-26258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-lending","tag-regulation","tag-south-korea"],"aioseo_notices":[],"amp_enabled":true,"views":"104","promo_type":"1","layout_type":"1","short_excerpt":"South Korea's Financial Services Commission ordered exchanges to halt crypto lending.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=26258"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26258\/revisions"}],"predecessor-version":[{"id":26260,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26258\/revisions\/26260"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26259"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=26258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=26258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=26258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}