South Korea’s top financial regulator has ordered cryptocurrency exchanges to halt new digital asset lending services, citing growing risks and the need for clearer rules. The Financial Services Commission (FSC) requested that exchanges pause new lending contracts until regulatory guidelines are finalized. Existing contracts for repayment and maturity extensions will still be permitted. This move follows a joint task force created by the FSC and the Financial Supervisory Service (FSS) to develop a framework for regulating crypto lending. The guidelines are expected to cover leverage limits, user eligibility, and risk disclosures related to virtual asset lending activities. The FSC has announced that it will conduct on-site inspections and take action against platforms failing to comply.