South Korea Issues Warning on Cryptocurrency Loan and Margin Trading Services by Upbit and Bithumb

BlockBeats News, July 31st, according to Decrypt's report, the Financial Services Commission (FSC) and Financial Supervisory Service (FSS) of South Korea expressed concerns last Friday regarding Upbit and Bithumb's launch of leverage of up to 4x on lending products, allowing short selling through borrowed funds. Upbit has already suspended its USDT lending service, while Bithumb adjusted its structure on Tuesday but maintained the controversial 4x leverage ratio. South Korean crypto experts warn that stricter regulations may drive users to offshore platforms with weaker compliance standards, weakening South Korea's investor protection and its ability to shape its cryptocurrency market.