Regulatory authorities in Seoul examine crypto margin loans from Upbit and Bithumb: Warning of risks through 4: 1 lever and demand for new protective measures

Regulatory authorities in Seoul examine crypto margin loans from Upbit and Bithumb: Warning of risks through 4: 1 lever and demand for new protective measures

Checking crypto margin loans in Seoul: risks and new protective measures

In the South Korean capital Seoul, the activities in the area of crypto margin loan were examined by the regulatory authorities there. The two large cryptocurrency exchanges Upbit and Bithumb are the focus of criticism because they offer margin loans with a lever of up to 4: 1.

The regulatory authorities in South Korea express concerns about the associated risks. Such a lever can lead to significant losses, especially in a volatile market like that of cryptocurrencies. For this reason, the authorities are looking for new protective measures to protect investors and ensure the stability of the market.

The developments in the field of crypto regulation in South Korea reflect a growing global interest in making trading with digital currencies safer. The review of the margin loans could lead to clearer guidelines and standards that benefit both the users and the platforms.

The response of the regulatory units could develop in the coming weeks and months, while they are examining opportunities to ensure a responsible trade and minimizing risks in the crypto industry.