Bithumb Reduces Coin Lending Limits Amid Regulatory Scrutiny

Bithumb's Service Changes: Bithumb, a major South Korean crypto exchange, has reduced its Coin Lending service's loan limits by 80% and halved lending leverage in response to regulatory scrutiny and market risks.

Regulatory Pressure: The adjustments are made under the oversight of South Korea's Financial Services Commission and Financial Supervisory Service, aiming to protect investors and enhance service quality.

Impact on Speculation: These changes are expected to limit speculative activities, potentially leading to a more stable trading environment and aligning with regulatory goals to minimize systemic risks.

Market Trends: Similar actions by other exchanges indicate a broader trend towards tighter lending regulations in South Korea's cryptocurrency industry, which may stabilize trading volumes and boost investor confidence.