1 week ago
Bithumb’s caller rules slash maximum indebtedness limits by 80% and halve leverage, pursuing regulator scrutiny implicit high-risk crypto lending products.
South Korean speech Bithumb tightened rules connected its month-old crypto lending service, halving leverage and sharply reducing indebtedness limits to code capitalist hazard concerns.
On Monday, the speech said it resumed its crypto lending work aft suspending it connected July 29 implicit “insufficient lending volume,” according to a study from the South Korean newspaper Kookmin Ilbo.
“After a broad reappraisal of the full service, immoderate adjustments person been made to support investors and amended work quality,” Bithumb reportedly said. It reduced the maximum leverage ratio from 4x to 2x and chopped the maximum lending magnitude from 1 cardinal won ($726,000) to 200 cardinal won ($145,000), an 80% drop.
The caller borrowing headdress applies adjacent to investors with much than 100 cardinal won ($72 million) successful cumulative trading measurement implicit the past 3 years, per the report.
Related: XRP custody goes unrecorded for Korean institutions via BDACS amid ‘strong interest’
South Korea forms task unit for crypto lending
On July 31, South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) formed a task force with the Korea Institute of Finance and section exchanges to draught “Virtual Asset Lending Service Guidelines.”
The task unit volition see members from the FSC, FSS and the Digital Asset eXchange Alliance (DAXA), representing the country’s 5 largest exchanges. It volition gully connected planetary standards, banal marketplace regulations and the circumstantial needs of South Korea’s crypto marketplace to plan rules that code leverage limits, plus eligibility and hazard transparency.
Authorities besides asked exchanges to reassess high-risk oregon legally ambiguous services, peculiarly those involving excessive leverage oregon fiat-based loans.
Bithumb reportedly reviewed its work presumption with regulators earlier resuming operations nether the caller limits.
Cointelegraph reached retired to Bithumb for comment but had not received a effect by publication.
Related: Bank of Korea to motorboat virtual plus committee to show crypto
Over a 4th of Koreans successful their 20s–50s ain crypto
More than one successful 4 South Koreans aged 20 to 50 clasp crypto, according to a study from the Hana Institute of Finance. On average, crypto accounts for 14% of their fiscal portfolios. The highest ownership complaint was among radical successful their 40s astatine 31%, followed by those successful their 30s and 50s.
As reported, South Korean retail investors are shifting from US Big Tech to crypto-linked stocks, with their stock of the apical 50 net-bought equities climbing from 8.5% successful January to 36.5% successful June earlier easing to 31.5% successful July.
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