South Korea exchange Bithumb is strictly policies to the monthly crypto lending services, stopping action and strictly reducing loan limits to address investors’ risk concerns.
On Monday, the exchange said it continued the Crypto lending service after it was suspended on July 29 in “inadequate quantity of lending,” According to In a report from the South Korean newspaper Kookmin Ilbo.
“After a comprehensive review of the entire service, some adjustments have been made to protect investors and improve the quality of service,” Bithumb reported. It reduced the maximum leverage ratio from 4x to 2x and cut the maximum lending amount from 1 billion winners ($ 726,000) to 200 million wins ($ 145,000), an 80% collapse.
The new borrowing cap applies even to investors with more than 100 billion winners ($ 72 million) with the combined amount of trade over the past three years, each report.
Related: Caution of XRP is live for Korean institutions by BDACs amid ‘strong interest’
South Korea generates a task force for crypto lending
On July 31, South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) formed by a task force with the Korea Institute of Finance and Local Exchange to draft a “virtual asset lending service guide.”
The Task Force includes members from the FSC, FSS and Digital Asset Exchange Alliance (DAXA), which represents the country’s five largest exchanges. It is drawn to international standards, stock market regulations and the specific requirements of the South Korean crypto market to design policies that meet the limits of action, qualitative assets and transparency of risk.
Authorities also asked to replace the reassessment of high risk or legal unclear services, especially those involving excessive leases or FIAT-based loans.
Sshumb reports that its service terms have been reviewed by regulators before continuing operations under new limitations.
Cointelegraph handed it to Bithumb to comment but did not receive a response by publishing.
Related: Bank of Korea to launch the Virtual Asset Committee to track Crypto
More than a -quarter of the Koreans in their 20s -50s own crypto
More than One of the four South Korea aged 20 to 50 Hold Crypto, according to a report from the Hana Institute of Finance. Usually, crypto accounts for 14% of their financial portfolios. The highest rate of ownership was among the people in their 40s at 31%, followed by those in the 30s and 50s.
https://www.youtube.com/watch?v=hi5H_h3zjq8
As reported, South Korea’s retail investors are Moving from us big tech to the stocks associated with crypto.
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