TLDR
- Bithumb reduced crypto lending leverage by 50% and loan limits by 80%.
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The exchange resumed its lending service after addressing investor risk concerns.
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South Korea’s FSC and FSS have formed a task force to regulate crypto lending.
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More than 25% of South Koreans in their 20s-50s hold cryptocurrencies.
Bithumb, one of South Korea’s largest cryptocurrency exchanges, has made substantial changes to its crypto lending service, responding to concerns over investor risk. The exchange announced a reduction in its maximum lending leverage from 4x to 2x and an 80% cut in the maximum loan limits. The decision came after a suspension of the service on July 29, 2025, due to insufficient lending volume.
These new changes mark a significant shift for the exchange, as it aims to reduce exposure to high-risk lending products. While the crypto lending service has resumed, the new rules are expected to limit the amount investors can borrow, even for those with significant trading volumes.
Bithumb New Lending Limits and Leverage Caps for Bithumb Users
The exchange’s new borrowing cap limits users to loans of no more than 200 million won (approximately $145,000), a stark reduction from the previous cap of 1 billion won ($726,000). This change applies even to high-volume traders who have accumulated over 100 billion won ($72 million) in cumulative trading activity over the last three years.
The halving of the leverage ratio from 4x to 2x is designed to reduce the amount of risk exposure for users. Bithumb has stated that these adjustments were made after a comprehensive review of the lending service, focusing on improving service quality and better protecting investors. Despite the lowered limits, the resumption of the service indicates the exchange’s intent to continue offering crypto lending while managing risk.
South Korea Cracks Down on High-Risk Crypto Lending Products
The regulatory environment in South Korea has become more stringent in recent months, with authorities focusing on crypto lending services that offer high leverage and pose significant risks to investors. On July 31, 2025, the Financial Services Commission (FSC) and Financial Supervisory Service (FSS) established a task force aimed at drafting new guidelines for crypto lending services.
This task force, which includes representatives from major local exchanges and the Korea Institute of Finance, will create regulations that address issues such as leverage limits, asset eligibility, and transparency around risks. The new guidelines will be informed by international standards and the unique characteristics of the South Korean crypto market. South Korean authorities have also called on exchanges to review high-risk products, especially those involving excessive leverage or fiat-based loans.
Bithumb has reportedly worked closely with regulators to ensure its crypto lending service aligns with these new regulations. The company reviewed its lending terms and adjusted its service in response to the increased regulatory scrutiny.
South Korea’s Thriving Crypto Market Amid Regulatory Changes
South Korea has a strong presence in the global crypto market, with more than a quarter of South Koreans between the ages of 20 and 50 owning cryptocurrency. A recent report from the Hana Institute of Finance found that cryptocurrencies make up, on average, 14% of these individuals’ financial portfolios. Ownership rates are highest among people in their 40s, with 31% of individuals in this age group holding digital assets.
Consequently, as the country’s crypto market grows, South Korean retail investors are increasingly shifting from U.S. Big Tech stocks to crypto-related shares. This shift, along with the continued rise in crypto ownership, has prompted regulators to act. With the formation of the FSC and FSS task force, the government is working to ensure that crypto services are offered safely and transparently to protect investors.
