Korean financial regulators have expressed concern over new crypto lending services launched by Upbit and Bithumb, citing legal issues and a lack of investor protection. These services enable users to borrow and short-sell coins, with Bithumb allowing up to 4x leverage, raising regulatory red flags. Following a regulatory meeting, Upbit suspended its Tether lending service, while Bithumb maintained its position but paused new applications due to limited supply. Authorities plan to establish a self-regulatory task force with the industry to set interim rules ahead of formal legislation. Proposed measures include leverage limits, short-selling restrictions, and mandatory investor education, similar to protections in the traditional stock market.

Visit our website to read more Korean Regulators Flag Risks in Crypto Lending Services, Push for Self-Regulatory Task Force - Blockchain News Korea