Forwarding a piece of news:

South Korea halts new crypto lending services

The Financial Services Commission (FSC) of South Korea has required exchanges to suspend the launch of new crypto lending services. Reason: Clearing chaos and regulatory gray areas.

What happened:

The FSC sent a letter to exchanges—prohibiting new lending but allowing existing contracts (repayment, renewal).

In July, an exchange attracted 27,600 users in one month, with a trading volume of $1.1 billion. As a result—3,635 users lost all their funds due to forced liquidation.

USDT lending also experienced problems: trading volume surged and plummeted, with severe price fluctuations.

Why the pause:

So far, crypto lending has been in a "gray area"—AML and Travel Rule exist, but there are no specific regulations for crypto lending.

Authorities are developing separate regulations: leverage limits, risk disclosure, platform requirements.

The FSC and FSS have established a working group, promising inspections and penalties for violations.

Conclusion: Regulators are concerned that unregulated lending could become a "deposit-burning machine." The market is now waiting for clear guidelines to make crypto lending no longer like a casino.

The focus is not on what services have been stopped. The focus is on the fact that out of 27,600 users, 3,635 were liquidated, with 13.1% losing all their capital. As for the remaining users, let's guess how many of the 23,965 users are in a profitable position?

This is the truth: in a negative-sum game market, the number of people making a profit is far lower than those losing money, after all, the market cannot create money out of thin air.

Don't always hold unrealistic fantasies about this market. First, ensure that you won't be part of that 13.1%, and then figure out how to become part of that 10% or even 5%.