South Korea's regulators require domestic CEX to stop lending services starting today.

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On August 19, according to The Block, the South Korean Financial Services Commission (FSC) has ordered local cryptocurrency exchanges to suspend lending services starting August 19, 2025. The Financial Management Commission stated that the suspension will last until official guidelines for cryptocurrency lending are established. The regulatory body pointed out that there is legal uncertainty and user loss risks associated with lending services, noting that in the first month after a digital asset company launched its lending service, about 27,600 investors borrowed 1.5 trillion won (1 billion USD). The Financial Management Commission stated that 13% of these borrowers were forced to liquidate due to price fluctuations.

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