South Korea’s Financial Services Commission (FSC) has implemented a significant change in the crypto landscape, halting new crypto lending services from August 19, 2025, for major exchanges like Bithumb. This regulation aims to address legal uncertainties within the cryptocurrency market and ensure transparency amidst evolving market dynamics. The FSC is collaborating with major exchanges to implement this policy. Bithumb’s IPO is planned for 2025 with Samsung Securities appointed as their management team, focusing on building market trust rather than raising capital. Bithumb’s recent past lending activity has been substantial, processing over $1.2 billion in crypto loans. The regulatory move has potential implications for the future of DeFi platforms and overall market dynamics.