South Korean cryptocurrency exchange Bithumb has resumed its lending services, introducing new strict rules amid heightened regulatory scrutiny.
Bithumb Resumes Lending Services
The company paused its services in late July, citing low participation, but has now returned with what it describes as safer and more sustainable terms for customers.
New Limits and Their Impact
Adjustments include cutting maximum leverage from 4x to 2x and reducing the largest possible loan size from 1 billion won (approximately $726,000) to 200 million won ($145,000). These limits will apply across the board, even for high-volume traders with decades of experience, highlighting the company's sharp move to curb risky borrowing.
Regulator Responses and Collaboration
Bithumb's changes coincide with increased scrutiny of crypto lending in South Korea. Just days before the relaunch, the country’s financial watchdogs formed a dedicated task force with industry leaders to draft standardized lending guidelines for virtual assets.
Thus, Bithumb's return to lending with new rules illustrates the company's commitment to adapting to changing regulatory landscapes and enhancing the safety of its services for customers.
