ChainCatcher news, 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 guidelines are established. The FSC stated that cryptocurrency lending services are currently in a legal gray area, which could lead to user losses.

Previously, exchanges such as Upbit and Bithumb had also launched services allowing users to borrow against collateral in Korean won or digital assets. The FSC will allow repayment and maturity extensions for existing lending contracts while conducting on-site inspections of exchanges that do not comply with administrative guidance. The FSC stated that it will swiftly establish relevant guidelines to protect users and provide a clear regulatory framework.