Bithumb Don Dey Resume Crypto Lending with 80% Cut and 2x Leverage
Bithumb, di lider crypto exchange for South Korea, don resume dia crypto lending service after e pause am last 29 July because volume no too plenty, and dem talk to regulators before dem start am again. The exchange reduce dia crypto lending cap by 80%, bring the max loan down to 200 million won, and cut max leverage from 4x to 2x. These strict rules even apply to traders wey get over 100 billion won in trade in three years. This change follow guidance from Financial Services Commission (FSC) and Financial Supervisory Service (FSS) wey dey draft Virtual Asset Lending Service Guidelines under the Digital Asset eXchange Alliance, dem dey focus on leverage limits, asset eligibility, and risk disclosure. This move na part of bigger risk management moves after KYC lapses happen for Upbit. South Korea retail crypto market still strong, with over 25% of people between 20–50 years holding digital assets and dem dey put average 14% of their portfolio for crypto, as dem dey shift focus from US tech stocks to crypto-related equities.
Bearish
Bithumb decide to slash im crypto lending limits by 80% and halve leverage to 2x go direct reduce traders borrowing capacity, e fit likely make short-term trading volumes reduce and e fit put pressure make crypto asset price go down. For long term, better investor protection, clearer regulatory guideline and better risk disclosure fit help make market stable by reducing systemic risks and bring back confidence. Overall, the tighter crypto lending terms go bring bearish impact for start, but better market resilience fit help reduce volatility over time.