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Bithumb Exchange Faces Regulatory Scrutiny as South Korea Halts Crypto Lending Products
Bithumb Exchange Faces Regulatory Scrutiny as South Korea Halts Crypto Lending Products
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Bithumb exchange News -
South Korea's Financial Services Commission (FSC) has ordered cryptocurrency exchanges to suspend new lending products, citing increasing risks to users and market stability. This decision follows a Bithumb incident where 13% of 27,000 lending customers experienced liquidations due to volatile collateral fluctuations.
A recent Galaxy Digital report highlights global concerns, with crypto-collateralized loans jumping 27% in Q2 to $53.1 billion—levels not seen since the 2022 bull market. Bitcoin's $6,000 drop last week resulted in $1 billion in liquidations, revealing systemic vulnerabilities across DeFi protocols and ETH staking queues.
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