Overview

• The Financial Services Commission issued administrative guidance blocking the rollout of new exchange lending products and warned of on‑site inspections for noncompliance.
• Existing loans remain active, and borrowers can extend terms or repay under current contracts before new rules take effect.
• Regulators cited a June episode in which roughly 27,600 users borrowed about 1.5 trillion won, with around 13% liquidated after price swings.
• The FSC highlighted USDT lending that triggered heavy sell orders and a temporary drop in the stablecoin’s price on local platforms.
• The pause follows July requests for exchanges to reassess lending and comes as Galaxy Digital reports crypto‑collateralized loans up 27% in Q2 to $53.1 billion.