South Korean exchange Bithumb has revised its crypto lending service, reducing the maximum loan limits by 80% and halving the leverage ratio from 4x to 2x. This move follows regulatory scrutiny aimed at high-risk crypto lending products. After temporarily suspending the service due to low lending volume, Bithumb announced the resumption of operations with new caps: the maximum lending amount now stands at 200 million won ($145,000), down from 1 billion won ($726,000). The new borrowing limits apply irrespective of an investor's trading volume, even for those with over 100 billion won ($72 million) in transactions over the past three years. The adjustment aligns with a broader effort by South Korea's Financial Services Commission (FSC) and Financial Supervisory Service (FSS) to formulate guidelines governing virtual asset lending to enhance investor protection and service quality within the crypto market. These new guidelines will establish leverage limits, asset eligibility criteria, and transparency measures. Bithumb consulted with regulators to ensure compliance before resuming its crypto lending service.

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