Under regulatory pressure, Bithumb significantly tightens cryptocurrency lending rules: leverage halved, loan limits reduced by 80%

ChainCatcher news, according to Cointelegraph, South Korean exchange Bithumb announced it is tightening the rules for its cryptocurrency lending service, which has been live for a month. This move is in response to the scrutiny from South Korea's financial regulators regarding high-risk crypto lending products. Previously, the exchange had suspended its cryptocurrency lending service and conducted a comprehensive review on July 29.

Before resuming operations under the new restrictions, Bithumb reviewed its service terms with regulators. The leverage rate has been reduced from 4 times to 2 times, and the maximum loan limit has been significantly cut by 80% from $726,000 to $145,000.