Bithumb Relaunches Crypto Lending Service Under Stricter Caps and Lower Leverage

Highlights:

• Bithumb relaunches crypto lending services with new rules that reduce leverage.
• The South Korean task force is working on crypto lending guidelines to establish leverage caps.
• The crypto ownership in South Korea is highest among people in their 40s, with an average portfolio share of 14%.

Bithumb has relaunched its crypto lending service on August 8 after suspending it on July 29 due to low lending volume. The exchange had only launched the service in July before pausing it for a full review. The internal review focused on how investor protection could be enhanced to create a more efficient service structure.

BITHUMB CUTS LEVERAGE AND LOAN LIMITS AMID REGULATORY PRESSURE

Bithumb has halved maximum leverage and reduced loan limits by 80%.

New rules target high-risk crypto lending after increased regulator scrutiny.

Changes reflect mounting pressure on Korean exchanges to tighten…

— CryptoEdge (@EdGeraldX) August 12, 2025

All traders working with large volumes of transactions are now covered by the new service terms. Bithumb collaborated with concerned authorities during the review to ensure its operations comply with market expectations. The decision to resume the service was made after aligning the changes with investor needs and market practices. The exchange noted that the changes involved a significant revision of the initial launching terms.

Bithumb Resumes Crypto Lending with Stricter Limits

Bithumb revised the leverage ratio to be two times maximum, down from four times maximum in its revised offering. It also reduced the lending limit, which was set at 1 billion won, to 200 million won. This represents an 80% cut from the original lending limit. The rules now apply to every participant, including qualified investors with more than 100 billion won in trading volume over three years.

According to Bithumb, the goal of these changes is to guarantee the safety of investors, as well as to enhance the level of services. According to the company, both retail and institutional traders are treated equally under the new rules. The adjustments were made at a time of increased focus by South Korean financial regulators on leveraged services, although Bithumb did not attribute the changes to pressure. Meanwhile, Bithumb recently regained 25% of the South Korean market as it prepares for a possible IPO.

The Financial Services Commission and the Financial Supervisory Service recently formed a task force with the Korea Institute of Finance to create new lending guidelines. The Digital Asset eXchange Alliance, which represents the five largest exchanges in the country, is also involved. The task force plans to establish rules for leverage limits, asset eligibility, and risk transparency. These guidelines are likely to be based on both global best practices for capital markets and existing domestic stock market platforms.

Regulators have also encouraged the exchanges to review services involving excessive leverage or loans involving fiat currency. Bithumb adjusted its lending terms during the suspension period by taking into consideration these priorities. Rival platform Upbit also confirmed it would exclude Tether (USDT) from its new lending service as part of similar adjustments.

Investor Activity and Market Impact

The level of cryptocurrency holdings in South Korea is high among individuals between 20 and 50 years old. Hana Institute of Finance reported an average of 14% of digital assets in financial portfolios within this age bracket. The number of owners is largest in the 40s, at 31%, although people in their 30s and 50s follow closely.

Retail investors in South Korea have also abandoned U.S. Big Tech stocks in favor of cryptocurrency-related stocks. Their presence among the top 50 net-bought equities increased in June to 36.5%, up from 36.5% in January. It then relaxed a notch to 31.5% in July. This transition demonstrates increasing demand for resources related to the crypto industry, despite measures taken by exchanges to impose harsher lending conditions.

S. Korean retail investors shift from U.S. big tech to crypto-related stocks: report https://t.co/Q1II4Ky8i8

— Yonhap News Agency (@YonhapNews) August 11, 2025