{"id":48319,"date":"2025-08-19T11:00:50","date_gmt":"2025-08-19T08:00:50","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=48319"},"modified":"2025-08-19T10:41:59","modified_gmt":"2025-08-19T07:41:59","slug":"south-korea-temporarily-suspends-crypto-lending-services","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/south-korea-temporarily-suspends-crypto-lending-services\/","title":{"rendered":"South Korea Temporarily Suspends Crypto Lending Services"},"content":{"rendered":"<p data-start=\"120\" data-end=\"363\"><strong>South Korea\u2019s Financial Services Commission<\/strong> (<strong>FSC<\/strong>) has instructed local crypto exchanges to temporarily suspend lending services until proper guidelines are established. This move aims to prevent investor losses and maintain market stability.<\/p>\n<p data-start=\"365\" data-end=\"475\">Currently, crypto lending services operate in a legal gray area, and price volatility poses risks for users.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/south-korea-temporarily-suspends-crypto-lending-services\/#Current_Situation_in_the_Crypto_Lending_Market\" title=\"Current Situation in the Crypto Lending Market\">Current Situation in the Crypto Lending Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/south-korea-temporarily-suspends-crypto-lending-services\/#Crypto_Policy_and_Next_Steps\" title=\"Crypto Policy and Next Steps\">Crypto Policy and Next Steps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/south-korea-temporarily-suspends-crypto-lending-services\/#Importance_for_the_Market_and_Investors\" title=\"Importance for the Market and Investors\">Importance for the Market and Investors<\/a><\/li><\/ul><\/nav><\/div>\n<h3 data-start=\"477\" data-end=\"529\"><span class=\"ez-toc-section\" id=\"Current_Situation_in_the_Crypto_Lending_Market\"><\/span>Current Situation in the Crypto Lending Market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"530\" data-end=\"919\">On July 4, 2025, <strong>Upbit<\/strong> allowed users to borrow up to 80% of their assets in <strong>Tether<\/strong> (<strong>USDT<\/strong>), <strong>Bitcoin<\/strong> (<strong>BTC<\/strong>), and <strong>XRP<\/strong>. Bithumb, on the other hand, enabled users to take loans worth up to four times their holdings. Within just the first month, approximately 27,600 investors borrowed a total of 1.5 trillion won ($1.1 billion). Due to volatility, 13% were forced to liquidate their positions.<\/p>\n<p data-start=\"921\" data-end=\"1259\">The FSC will develop new guidelines for crypto lending services. Until these rules come into effect, repayments and maturity extensions will remain possible for existing loan contracts. Exchanges failing to comply with the guidelines will be subject to on-site inspections. The main goal is to protect users and enhance market security.<\/p>\n<h3 data-start=\"1261\" data-end=\"1295\"><span class=\"ez-toc-section\" id=\"Crypto_Policy_and_Next_Steps\"><\/span>Crypto Policy and Next Steps<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1296\" data-end=\"1720\">South Korea is taking a more open stance on crypto, mirroring crypto-friendly moves in the <strong>U.S<\/strong>. The government is gradually lifting its ban on institutional crypto trading, preparing to approve its first spot crypto ETFs, and planning to establish a stablecoin market pegged to the local currency. Under <strong>President Lee Jae Myung<\/strong>\u2019s administration, there is a clear commitment to integrating crypto into the financial system.<\/p>\n<h3 data-start=\"1722\" data-end=\"1767\"><span class=\"ez-toc-section\" id=\"Importance_for_the_Market_and_Investors\"><\/span>Importance for the Market and Investors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1768\" data-end=\"2111\">The temporary suspension may create short-term uncertainty in the markets but is expected to pave the way for lasting regulations that will protect investors and strengthen market stability in the long run. Investors are closely monitoring the content of the new guidelines and the conditions under which <strong>crypto<\/strong> lending services will resume.<\/p>\n<p data-start=\"1768\" data-end=\"2111\">You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener nofollow\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">Telegram,\u00a0<\/strong><\/a><a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener nofollow\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">YouTube<\/strong><\/a>,\u00a0and\u00a0<a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\"><strong class=\"darkmysite_style_txt_border darkmysite_processed\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">Twitter<\/strong><\/a>\u00a0channels for\u00a0the latest\u00a0<a class=\"darkmysite_style_txt_border darkmysite_style_link darkmysite_processed\" title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\" data-darkmysite_alpha_bg=\"rgba(0, 0, 0, 0)\">news<\/a>\u00a0and updates.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Korea\u2019s Financial Services Commission (FSC) has instructed local crypto exchanges to temporarily suspend lending services until proper guidelines are established. This move aims to prevent investor losses and maintain market stability. Currently, crypto lending services operate in a legal gray area, and price volatility poses risks for users. Current Situation in the Crypto Lending<\/p>\n","protected":false},"author":37,"featured_media":44746,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,657,2],"tags":[],"class_list":["post-48319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-en","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>South Korea Temporarily Suspends Crypto Lending Services - Coin Engineer<\/title>\n<meta name=\"description\" content=\"South Korea\u2019s Financial Services Commission (FSC) has instructed local crypto exchanges to temporarily suspend lending services until\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/south-korea-temporarily-suspends-crypto-lending-services\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea Temporarily Suspends Crypto Lending Services - 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