South Korean regulators require cryptocurrency exchanges to suspend lending services

According to HashChain, the South Korean Financial Services Commission (FSC) has required local cryptocurrency exchanges to suspend lending activities until relevant regulatory guidelines are issued. The FSC stated that the related services are in a legal gray area, posing a risk of loss for users. Previously, exchanges including Upbit and Bithumb launched crypto lending services, and some users faced forced liquidation due to price fluctuations. The FSC will allow existing contracts to continue repayment and renewal and plans to conduct on-site inspections of exchanges that do not comply with the guidelines.