South Korea strikes! Starting today, all exchange lending is fully banned! 4x leverage bloodbath for retail investors? Global regulatory crackdown begins!
Sudden heavy blow, effective immediately!
Today, South Korea's highest financial authority, the FSC, took swift action! All cryptocurrency lending services at local exchanges are immediately suspended! This is not a warning, but an immediately enforceable ban!
Trigger: Exchanges playing with fire and burning themselves!
Breaking news: At the beginning of July, Upbit led the way with '80% collateral to borrow coins for speculation', while Bithumb went even crazier, directly engaging in 'collateral of 1 million, borrowing 4 million to trade coins' with 4x leverage! Smaller exchanges followed suit, turning the entire Korean crypto space into a 'high-leverage casino'. Regulators warned in late July, but no one listened; today, they pulled the plug!
Why must it be banned?
Risk nuclear explosion: 4x leverage? Think about last year's Luna collapse; high-leverage players are left with nothing! The crypto market is highly volatile; with one sharp drop, retail investors' collateral can instantly go to zero, even leaving them in debt to the exchange!
Regulatory vacuum: Exchanges set their own rules? Collateral ratios and liquidation mechanisms are not transparent? This is playing Russian roulette with your money!
Korean characteristic: 'Kimchi premium' stimulates crazy speculation, newcomers are immediately cut! Regulators must step in to stop the bleeding!
Global impact: Is the crackdown beginning?
South Korea is by no means an isolated case! Hong Kong and Singapore have long been strictly regulating CeFi lending. This 'one-size-fits-all' approach in South Korea signals that global regulatory tolerance for 'high-leverage lending by exchanges' has dropped to zero!
What should retail investors do? Life-and-death speed!
Self-check immediately! If you have any lending positions in South Korea, close them! Right away! Transfer assets! Avoid being passively liquidated!
Reduce leverage! Protect your principal! The global regulatory wind has shifted; any lending/high-leverage contracts at exchanges carry significantly increased risks! It is recommended that retail investors reduce their leverage to below 2x or simply exit and observe!
Focus on compliant alternatives: Regulation targets 'gray area CeFi lending'; compliant staking services or truly transparent DeFi lending protocols may become new options? But risks must still be strictly controlled!
Keep an eye on policies: When will South Korea release formal rules? Will the US SEC and Hong Kong SFC follow suit? Before policies are implemented, cash is king; observe more and act less! #加密市场回调
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