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South Korea Suspends Crypto Lending to Protect Borrowers
South Korea Suspends Crypto Lending to Protect Borrowers
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BTCCSquare news:
South Korea’s Financial Services Commission has mandated a halt to all cryptocurrency lending services by local exchanges until formal regulations are established. The decision stems from data revealing that 13% of borrowers faced liquidation due to ambiguous oversight. Existing loan agreements may be settled or extended, but new lending activity is prohibited.
Non-compliant platforms will be subject to immediate regulatory scrutiny, including on-site inspections. The move underscores growing global attention to consumer risks in crypto finance—particularly where leverage and unclear rules intersect.
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