South Korea Cracks Down: Crypto Firms Ordered to Halt New Lending Products Amid Mounting Leverage Risks

Regulators drop the hammer on crypto lending just as leverage builds to dangerous levels.

Seoul draws line in sand

The Financial Services Commission isn't playing games—they've told exchanges and lending platforms to stop launching new yield products immediately. Existing services face intense scrutiny as authorities worry about cascading liquidations.

Leverage addiction meets regulatory reality

Korean traders love leverage like bankers love bonuses, but now the party might be ending. When 20x positions meet volatile crypto markets, even regulators start sweating—wonder if they finally checked the charts after their third coffee.

Yield farming meets compliance winter

Firms now scramble to restructure products while maintaining that 'everything is fine' facade. Because nothing says financial stability like begging users not to panic withdraw during a regulatory crackdown.

Just another day in crypto—where the only thing more leveraged than trades are regulators' patience.