The post Bithumb Resumes Crypto Lending with Stricter Rules on Leverage and Loan Limits appeared on BitcoinEthereumNews.com.

Fintech Bithumb, one of South Korea’s largest cryptocurrency exchanges, has resumed its recently launched lending platform with far tighter rules after a temporary suspension. The company paused the service in late July, citing low participation, but has now returned with what it describes as a safer, more sustainable model for customers. The adjustments include cutting maximum leverage from 4x to 2x and slashing the largest possible loan size from 1 billion won (about $726,000) to 200 million won ($145,000). The reduced limits will apply across the board, even for high-volume traders with decades of experience, signaling a sharp move to curb risky borrowing. Regulatory Pressure Shapes New Lending Rules The timing of Bithumb’s changes coincides with heightened scrutiny of crypto lending in South Korea. Just days before the relaunch, the country’s financial watchdogs — including the Financial Services Commission (FSC) and Financial Supervisory Service (FSS) — joined forces with industry leaders to create a dedicated task force. The goal is to draft standardized lending guidelines for virtual assets, focusing on leverage ceilings, eligible assets, and clearer disclosures of risk. Representatives from major exchanges, alongside the Korea Institute of Finance and the Digital Asset eXchange Alliance (DAXA), are participating in the initiative. Authorities have also urged platforms to review any services that could be deemed overly risky or legally ambiguous, particularly those involving excessive leverage or fiat-backed loans. Bithumb says it worked closely with regulators during its internal review, ensuring the revised service terms align with both domestic requirements and emerging global standards. The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment…

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Filed under: News - @ August 12, 2025 5:29 pm