The Financial Services Commission (FSC) in South Korea has halted cryptocurrency lending services until new regulations are implemented. This decision stems from concerns about legal uncertainty and potential investor losses. Notably, Upbit recently launched lending services allowing up to 80% collateralized borrowing against Bitcoin, Tether (USDT), and XRP. Bithumb also offered leverage of up to four times the value of held assets. In the first month, approximately $1.1 billion was borrowed by over 27,600 investors before 13% were forced into liquidation. The FSC intends to establish clear guidelines for investor protection while clarifying regulatory frameworks in this sector. This move supports President Lee Jae Myung’s broader vision for progressive digital asset policies within the country.