TechFlow, August 19 — According to TheBlock, South Korea's Financial Services Commission (FSC) has ordered local digital asset exchanges to suspend cryptocurrency lending services until appropriate regulatory guidelines are established. The FSC stated that crypto lending services currently exist in a legal gray area and could lead to user losses.
Previously, exchanges such as Upbit and Bithumb had launched services allowing users to borrow funds by pledging Korean won or digital assets as collateral. The FSC will allow repayment and maturity extensions for existing lending contracts, while conducting on-site inspections of exchanges that fail to comply with administrative guidance. The FSC said it will swiftly establish relevant guidelines to protect users and provide a clear regulatory framework.
