[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"wp-translations":3,"blog-categories-en":8,"fetchPost-news\u002Fsouth-korea-suspends-new-crypto-lending-on-exchanges-en-1":41},{"post":4,"docs":7},[5,6],"EN","RU",[5,6],[9,18,26,34],{"id":10,"graphqlId":11,"name":12,"slug":13,"image":14,"uri":15,"count":16,"children":17,"locale":5},1,"dGVybTox","News","news",null,"\u002Fcategory\u002Fnews\u002F",42,[],{"id":19,"graphqlId":20,"name":21,"slug":22,"image":14,"uri":23,"count":24,"children":25,"locale":5},47,"dGVybTo0Nw==","Reveal the Differences","reveal-the-differences","\u002Fcategory\u002Freveal-the-differences\u002F",12,[],{"id":27,"graphqlId":28,"name":29,"slug":30,"image":14,"uri":31,"count":32,"children":33,"locale":5},39,"dGVybTozOQ==","Swap Guides","swap-guides","\u002Fcategory\u002Fswap-guides\u002F",24,[],{"id":35,"graphqlId":36,"name":37,"slug":38,"image":14,"uri":39,"count":27,"children":40,"locale":5},43,"dGVybTo0Mw==","Trading Guides","trading-guides","\u002Fcategory\u002Ftrading-guides\u002F",[],{"type":42,"post":43},"post",{"id":44,"title":45,"slug":46,"uri":47,"date":48,"excerpt":49,"content":50,"postId":51,"language":52,"translations":56,"categories":63,"tags":67,"featuredImage":69,"author":74,"seo":82},"cG9zdDo4NzU=","Discover How South Korea Suspends New Crypto Lending on Exchanges","south-korea-suspends-new-crypto-lending-on-exchanges","\u002Fnews\u002Fsouth-korea-suspends-new-crypto-lending-on-exchanges\u002F","2025-08-20T13:24:04","\u003Cp>South Korea’s top markets watchdog has moved to cool a red-hot corner of crypto finance. On Aug. 19, 2025, the Financial Services Commission (FSC) issued administrative guidance ordering local exchanges to suspend the launch of new crypto-lending products while it finalizes a rulebook for the activity. The action follows a spate of forced liquidations among … \u003Ca class=\"link-more\" href=\"https:\u002F\u002Fgodbex.io\u002Fnews\u002Fsouth-korea-suspends-new-crypto-lending-on-exchanges\u002F\"> Читать далее\u003C\u002Fa>\u003C\u002Fp>\n","\u003Cp>\u003Cspan style=\"font-weight: 400;\">South Korea’s top markets watchdog has moved to cool a red-hot corner of crypto finance. On \u003C\u002Fspan>\u003Cb>Aug. 19, 2025\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">, the \u003C\u002Fspan>\u003Cb>Financial Services Commission (FSC)\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> issued \u003C\u002Fspan>\u003Ci>\u003Cspan style=\"font-weight: 400;\">administrative guidance\u003C\u002Fspan>\u003C\u002Fi>\u003Cspan style=\"font-weight: 400;\"> ordering local exchanges to \u003C\u002Fspan>\u003Cb>suspend the launch of new crypto-lending products\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> while it finalizes a rulebook for the activity. The action follows a spate of forced liquidations among retail users and reports of unusual stablecoin price moves. Existing lending contracts may continue—borrowers can repay or extend under current terms—but fresh originations are on hold until clear standards are in place.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch2>\u003Cb>What exactly did the FSC say?\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">In its notice, the regulator said it sent letters to exchanges instructing them to pause new lending services “to protect virtual asset users.” The guidance is immediate and will be backed by \u003C\u002Fspan>\u003Cb>on-site inspections and supervisory action\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> for platforms that don’t comply. The FSC is preparing formal \u003C\u002Fspan>\u003Cb>lending guidelines\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">—developed with the Financial Supervisory Service (FSS) via a joint task force set up July 31—that are expected to address leverage (loan-to-value) limits, user eligibility, and risk disclosures.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Crypto media summaries of the letter add two key clarifications:\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cul>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>Existing loans are not canceled.\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> Repayments and maturity extensions are permitted while the FSC drafts the framework.\u003C\u002Fspan>\u003C\u002Fli>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">The guidance responds to \u003C\u002Fspan>\u003Cb>market-stability concerns\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> after rapid growth in exchange-run lending.\u003C\u002Fspan>\u003C\u002Fli>\n\u003C\u002Ful>\n\u003Ch2>\u003Cb>Why now?\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Regulators pointed to episodes of \u003C\u002Fspan>\u003Ci>\u003Cspan style=\"font-weight: 400;\">mass liquidations\u003C\u002Fspan>\u003C\u002Fi>\u003Cspan style=\"font-weight: 400;\"> and market stress linked to exchange lending rollouts this summer. One exchange drew about \u003C\u002Fspan>\u003Cb>27,600\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> users in a month after launching lending in mid-June, with \u003C\u002Fspan>\u003Cb>~13%\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> of borrowers later \u003C\u002Fspan>\u003Cb>forced into liquidation\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> as collateral values fell; total activity reportedly reached \u003C\u002Fspan>\u003Cb>₩1.5 trillion (~$1.1B)\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">. Officials also flagged two companies’ \u003C\u002Fspan>\u003Cb>USDT lending\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> that coincided with unusual selling and a dip in Tether’s price on local markets—evidence, they said, that new lending without safeguards can distort trading conditions.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch2>\u003Cb>Which platforms are affected?\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">The guidance applies to \u003C\u002Fspan>\u003Cb>registered virtual asset service providers (VASPs)\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> in South Korea, including major exchanges. Industry reporting notes that large venues launched or tested lending this summer, contributing to rapid leverage build-up and user losses—now the focus of the pause.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch2>\u003Cb>What changes for customers?\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cul>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>You cannot open new exchange lending positions\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> for now.\u003C\u002Fspan>\u003C\u002Fli>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>Your existing loan can continue\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">: borrowers may repay or, where allowed by their agreement, extend maturities.\u003C\u002Fspan>\u003C\u002Fli>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cspan style=\"font-weight: 400;\">Expect \u003C\u002Fspan>\u003Cb>stricter onboarding and disclosures\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> once formal guidelines arrive (e.g., LTV caps, clearer liquidation rules).\u003C\u002Fspan>\u003C\u002Fli>\n\u003C\u002Ful>\n\u003Ch2>\u003Cb>Market impact and context\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">CoinDesk frames the move as an attempt to curb \u003C\u002Fspan>\u003Cb>excess leverage\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> that had crept back toward bull-market levels—global crypto-collateralized lending rose \u003C\u002Fspan>\u003Cb>27% quarter-over-quarter to $53.1B\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> in Q2, per research it cited. Korea’s clampdown landed days after a \u003C\u002Fspan>\u003Cb>$1B-plus liquidation wave\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">, highlighting the speed with which crowded positions can unwind. Some analysts argue for better safeguards (UI\u002FUX, disclosure, tighter LTVs) rather than blanket suspensions, but regulators opted to pause first, then codify rules.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch2>\u003Cb>Is this a ban?\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">No—\u003C\u002Fspan>\u003Cb>it’s a suspension of \u003C\u002Fb>\u003Cb>\u003Ci>new\u003C\u002Fi>\u003C\u002Fb>\u003Cb> lending services\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">, not a permanent prohibition. The FSC explicitly described the action as administrative guidance pending a formal framework. The agency has been building out crypto oversight since the \u003C\u002Fspan>\u003Cb>Virtual Asset User Protection Act\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> took effect in 2024; lending, however, sat in a \u003C\u002Fspan>\u003Cb>legal gray area\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> without a dedicated regime, which the new guidelines aim to address.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch2>\u003Cb>What the forthcoming guidelines will likely cover\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">While the full text isn’t published yet, the task force remit and regulator language suggest the rulebook could include:\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cul>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>Leverage caps\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> and standardized \u003C\u002Fspan>\u003Cb>LTV\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> thresholds\u003C\u002Fspan>\u003C\u002Fli>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>Eligibility and suitability\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> checks for retail users\u003C\u002Fspan>\u003C\u002Fli>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>Liquidation procedures\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">, reporting, and grace periods\u003C\u002Fspan>\u003C\u002Fli>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>Disclosure\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> standards for fees, triggers, and risks\u003C\u002Fspan>\u003C\u002Fli>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>Supervisory oversight\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> and data reporting to the FSS\u002FFSC\u003C\u002Fspan>\u003C\u002Fli>\n\u003C\u002Ful>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Cointelegraph’s recap notes that the authorities intend to \u003C\u002Fspan>\u003Cb>inspect non-compliant platforms\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> and that rules will formalize what had been ad-hoc offerings by exchanges.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch2>\u003Cb>Why it matters beyond Korea\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Korea is one of the world’s largest crypto trading markets, and policy moves there can \u003C\u002Fspan>\u003Cb>ripple into global liquidity and pricing\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">—especially for \u003C\u002Fspan>\u003Cb>stablecoins\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> and \u003C\u002Fspan>\u003Cb>perpetuals\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> where local flows interact with offshore venues. The FSC’s decision also adds to a broader 2025 theme: regulators accommodating spot ETFs and mainstream access while \u003C\u002Fspan>\u003Cb>tightening leverage and retail risk\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> in parallel.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch2>\u003Cb>The bottom line\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cul>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>What happened:\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> As of \u003C\u002Fspan>\u003Cb>Aug. 19, 2025\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">, South Korea’s FSC ordered exchanges to \u003C\u002Fspan>\u003Cb>halt new crypto-lending products\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> via administrative guidance. \u003C\u002Fspan>\u003Cb>Existing loans\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> may continue (repayment\u002Fextension).\u003C\u002Fspan>\u003C\u002Fli>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>Why:\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> To protect users after \u003C\u002Fspan>\u003Cb>thousands of forced liquidations\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> and to prevent \u003C\u002Fspan>\u003Cb>market distortions\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\">, including stablecoin anomalies.\u003C\u002Fspan>\u003C\u002Fli>\n\u003Cli style=\"font-weight: 400;\" aria-level=\"1\">\u003Cb>What’s next:\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> A \u003C\u002Fspan>\u003Cb>formal lending framework\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> covering leverage limits, eligibility, and disclosures; \u003C\u002Fspan>\u003Cb>inspections\u003C\u002Fb>\u003Cspan style=\"font-weight: 400;\"> for any platform that ignores the pause.\u003C\u002Fspan>\u003C\u002Fli>\n\u003C\u002Ful>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">If you’re a Korean exchange user, expect a temporary freeze on opening new loans and watch for updated terms once the FSC’s guidelines land. If you’re a market watcher, keep an eye on stablecoin pricing, derivatives funding, and the speed at which Korean venues adapt—those will be the first signals of how the policy reshapes local leverage and, by extension, global crypto liquidity.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch3>Follow us:\u003C\u002Fh3>\n\u003Cp>\u003Ca class=\"invalid-url\" href=\"http:\u002F\u002Fgodbex.io\u002F\" data-validation-message=\"Missing or incorrect post type prefix. 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