South Korea Halts Crypto Lending Amid Market Volatility and Investor Concerns

South Korea’s Financial Services Commission (FSC) has ordered local cryptocurrency exchanges to temporarily halt their lending services, citing concerns over market volatility and potential investor harm. The action follows the launch of new lending products by major exchanges earlier this year, raising regulatory concerns about market stability and safety. 13% of borrowers have already liquidated positions due to declining collateral value in response to recent market fluctuations.