Bithumb’s new rules slash maximum loan limits by 80% and halve leverage, following regulator scrutiny over high-risk crypto lending products.
South Korean exchange Bithumb tightened rules on its month-old crypto lending service, halving leverage and sharply reducing loan limits to address investor risk concerns.
On Monday, the exchange said it resumed its crypto lending service after suspending it on July 29 over “insufficient lending volume,” according to a report from the South Korean newspaper Kookmin Ilbo.
“After a comprehensive review of the entire service, some adjustments have been made to protect investors and improve service quality,” Bithumb reportedly said. It reduced the maximum leverage ratio from 4x to 2x and cut the maximum lending amount from 1 billion won ($726,000) to 200 million won ($145,000), an 80% drop.
