South Korea stop crypto lending because law wahala by August 2025
South Korea Financial Services Commission (FSC) don tok say make all crypto exchanges stop new crypto lendin service start August 19, 2025. Dem no allow new lendin contract but dem fit continue existing loan. Platform wey no follow dis go get inspection for ground plus punishment wey dem never talk finish. Regulator dem carry dis step because Upbit, Bithumb and Coinone lend plenti crypto, loan reach 80% LTV and 1.5 trillion won ($1.2bn) borrow in one month, wey cause 13% liquidation rate as market price dey unpredictable. FSC warn say unregulated crypto lending fit harm small investors and make market shaking. Exchanges don stop lendin for now, dem dey wait make regulatory draft ready by early 2026 wey go set limit for leverage, risk disclosure and investor rule. Traders suppose watch the changes cause e fit reduce short-term money but e go better market stability and clear in long run.
Bearish
Di suspension wey dey stop new crypto lending go reduce di leverage wey dey available and loan-based liquidity, e fit limit short-term trading volumes and dey dull price momentum (bearish). Exchanges wey pause lending fit make buy-side funding low and market dey more careful. But for long term, di introduction of clear regulations, leverage caps and risk disclosures go restore investors confidence and help make market dey stable, fit support prices over time.