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South Korean regulators warn Upbit and Bithumb of potential regulatory risks with their leveraged lending services
07-31 09:49

South Korea's Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have issued warnings regarding high-leverage lending products offered by Upbit and Bithumb. Both platforms offer up to 4x leverage, allowing users to short sell through borrowed funds.

Upbit has suspended its USDT lending service, while Bithumb adjusted its product structure on Tuesday, but retained its 4x leverage ratio. South Korean industry experts say excessively tight regulations could drive users to offshore platforms, weakening local investor protection and market dominance. (Decrypt)


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