Bithumb to Scale Back Crypto Lending Services After Regulatory Pressure

Key Points

1. Bithumb reduced its leverage ratio from x4 to x2 and slashed its maximum lending cap by 80% from 1 billion won to 200 million won.

2. The exchange temporarily suspended crypto lending on July 29 due to 'insufficient lending volume' but resumed the service on August 8 with new restrictions.

3. Bithumb stated the adjustments were made to 'protect investors and improve service quality,' applying the new terms even to 'qualified investors.'

4. South Korean regulators (FSC and FSS) are set to release guidelines for crypto exchanges, expressing concerns about leverage-associated risks and user understanding.

5. Upbit announced it will exclude Tether (USDT) from its new crypto lending services, with industry sources predicting further regulatory actions by the end of the month.