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South Korean Regulatory Agency Orders Suspension of Cryptocurrency Lending Services Until New Guidelines are Established
Summary: According to The Block, the South Korean Financial Services Commission (FSC) has ordered local digital asset exchanges to suspend cryptocurrency lending services until appropriate regulatory guidance is developed. The FSC stated that cryptocurrency lending services are currently in a legal gray area, which could lead to user losses. Previously, exchanges like Upbit and Bithumb had ...
According to The Block, the South Korean Financial Services Commission (FSC) has ordered local digital asset exchanges to suspend cryptocurrency lending services until appropriate regulatory guidance is developed. The FSC stated that cryptocurrency lending services are currently in a legal gray area, which could lead to user losses. Previously, exchanges like Upbit and Bithumb had introduced services allowing users to borrow using Korean won or digital assets as collateral. The FSC will allow repayment and extension of existing loan contracts while conducting on-site inspections of exchanges that do not comply with administrative guidance. The FSC stated that it will promptly establish relevant guidelines to protect users and provide a clear regulatory framework.
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Link: South Korean Regulatory Agency Orders Suspension of Cryptocurrency Lending Services Until New Guidelines are Established [Copy]
