Bithumb Exchange Tightens Crypto Lending Rules Amid Regulatory Pressure

Bithumb, one of South Korea's leading cryptocurrency exchanges, has significantly reduced the leverage and loan limits for its crypto lending service. Leverage has been cut from 4x to 2x, and the maximum borrowing limit has been slashed by 80%, now capped at 200 million won ($145,000) — down from the previous 1 billion won ($726,000). These restrictions apply even to high-volume traders with over 100 billion won ($72 million) in cumulative activity.

This decision follows a temporary suspension of lending services on July 29, 2025, due to low trading volume. Bithumb's move reflects increasing caution around high-risk crypto lending products as South Korean regulators step up oversight. The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have formed a dedicated task force to examine crypto lending practices.

Cryptocurrency adoption remains strong in South Korea, with more than 25% of adults aged 20-50 holding digital assets. Bithumb's policy adjustment highlights a broader industry trend toward risk management as exchanges seek to balance innovation with investor protection.