South Korean regulators warn about high-leverage lending products from Upbit and Bithumb

ChainCatcher news, according to Decrypt, the South Korean Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) expressed concerns last Friday regarding Upbit and Bithumb's lending products that offer up to 4x leverage, which allow short selling by borrowing funds.

Upbit has suspended its USDT lending service, while Bithumb adjusted its structure on Tuesday but retained the controversial 4x leverage ratio. South Korean crypto experts warn that stricter regulations may push users towards offshore platforms with weaker compliance standards, undermining South Korea's ability to protect investors and shape its cryptocurrency market.