South Korean Financial Services Commission (FSC) has made an administrative notification to temporarily suspend loan services to local crypto currency exchanges from Tuesday. Until a new framework was formed, the regulatory institution requested the stopping of crypto currency credit products. The decision was taken due to concerns about the risk of high user losses and market stability. FSC, the notification does not comply with the stock exchanges on the site will also add.
The stock exchanges were asked to stop crypto currency credit services
Releasedaccording to Upbit USDT, Bitcoin for users who guaranteed US dollars deposits or crypto currencies on 4 July 2025 $115,054.16 And for XRP, up to 80 percent of its assets in exchange for borrowing. Bithumb If the guarantee value of the users up to four times the crypto currency can be put into place. Other crypto currency The stock exchanges also offered similar products, so that a wide range of credit ecosystem was created in a short time.
FSCOn July 31, the stock exchange for the products in question to make a re -evaluation of the products remained legally in the gray area and user damage has a high risk of risk, he said. According to the data shared by the regulatory institution, a total of 27,600 investors in the first month after a crypto currency company launched a loan service, a total of 1.5 trillion South Korean Won (approximately $ 1.1 billion) borrowed. Due to the fluctuations in the price, 13 percent of these users lost with compulsory liquidation. In addition, USDT loans were published in the period following the publication of the unusual sales pressure on the stock exchanges. With this pressure stablecoinUnusual decreases in the price of the price and the market operation was broken.
Crypto currency credit services will be suspended until new rules arrive
FSC, users will protect and uncertainty will quickly prepare the credit guide reported. So leverage Crypto Money Credit ServicesIt will be open to the current market structure and integrated with certain rules. Repayment and maturity extension will be allowed for existing contracts until the guide enters into force. Experts for stock exchanges that do not comply with the notification are on the agenda.
The statement also emphasized that the country turned to a clearer regulations. In this respect, financial authorities are preparing to gradually remove the limitations of corporate investors for crypto money purchase and sale, and the first spot crypto currency is working for the approval of the exchange investment funds (ETFs). Minister Lee Jae Myung Management is indexed to the local currency stablecoin marketIt also continues preparations for the establishment of the establishment.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
