South Korea Halts Crypto Lending on Exchanges Amid Regulatory Concerns

In a move aimed at protecting investors and addressing potential market risks, South Korea’s Financial Services Commission (FSC) has ordered a temporary halt to crypto lending services offered by local exchanges. The suspension comes as the FSC prepares new regulations for the sector following concerns about legal ambiguity and user losses tied to rapidly growing lending activity. 27,600 users borrowed approximately $1.1 billion in one month alone, leading to potential market vulnerabilities.