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South Korean Regulators Require Domestic CEXs to Halt Lending Services Starting Today
BlockBeats News, August 19th: According to The Block, the Financial Services Commission (FSC) of South Korea has ordered local cryptocurrency exchanges to suspend their lending services starting from August 19, 2025. The Financial Supervisory Service stated that the suspension will remain in effect until official guidelines on cryptocurrency lending are established.
The regulatory agency noted that lending services carry legal uncertainties and user loss risks. It was highlighted that approximately 27,600 investors borrowed 15 trillion Korean won (10 billion USD) in the first month after a digital asset company launched its lending service. The Financial Supervisory Service stated that 13% of these borrowers were forced to liquidate their positions due to price fluctuations.
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