South Korea’s top two digital asset exchanges, Upbit and Bithumb, have launched crypto lending services on the same day, raising questions about whether leveraged investment in virtual assets will now become possible in the domestic market.

Attorney Ohhoon Kwon, managing partner at CHA & KWON, commented on the new services, stating, “Crypto lending services offer a leverage effect, but they differ from derivative trading in the stock market.” He further explained, “In stock markets, investors must pay fees associated with derivative contracts, whereas in crypto exchanges’ lending services, users only pay usage fees for the service. Since there are no separate contractual fees involved, there is no legal issue.”