[Bitcoin Now] Virtual Asset Exchanges Launch and Revamp Lending Services in Line with Guideline Implementation

Coinone Launches 'Coin Borrowing' Service, Upbit Resumes Lending
Korbit and Bithumb Also Plan to Reflect New Guidelines

Virtual asset exchanges are launching, resuming, or revamping their 'virtual asset lending services.' These moves are in line with the implementation of the financial authorities' 'Virtual Asset Lending Guidelines.'

According to the virtual asset industry on September 16, Coinone introduced its virtual asset lending service, 'Coin Borrowing,' on September 15. This service allows investors to borrow virtual assets using their Korean won holdings as collateral. Users can borrow virtual assets starting from a minimum collateral of 50,000 won up to 82% of their collateral value. Each individual can borrow up to 30 million won in a single transaction. The maximum lending period is 30 days, and a daily usage fee of 0.05% is applied. Only Bitcoin is supported.

Upbit launched its lending service in July, but in August, the financial authorities issued an administrative order to suspend new operations until guidelines were established, leading to a temporary halt of the service. The service was revamped and relaunched on September 8.

The maximum collateral limit, previously set at 50 million won, was lowered to 37.5 million won. Previously, additional lending applications were allowed if the collateral ratio was below 80%. However, now, if there is a record of Korean won collateral deposit, further applications are not permitted. Previously, both deposit and withdrawal of collateral were allowed, but now only deposits are permitted.

Other virtual asset exchanges are also revamping their services or preparing to launch new ones. This is because the Financial Services Commission implemented guidelines on virtual asset lending through the Digital Asset Exchange Association (DAXA) self-regulation on September 5. The main provisions include: ▲ restrictions on leverage services and monetary lending, ▲ limiting fees to within 20% per year, and ▲ restricting eligible assets to those ranked within the top 20 by market capitalization or traded on at least three Korean won-based exchanges.

Other virtual asset exchanges also plan to revamp or launch services in accordance with the guidelines. A representative from Korbit stated, "We plan to launch soon," and added, "Risk mitigation measures will likely be put in place according to the 'Virtual Asset Lending Service Guidelines' announced by the financial authorities."

Bithumb is also reportedly planning to revamp its coin lending service, 'Lending Plus,' to comply with the authorities' guidelines. Previously, Bithumb offered a service in July that allowed users to borrow up to four times the value of their collateral in virtual assets or Korean won, but after the administrative guidance, the leverage ratio was reduced to two times.