[Bitcoin Now] DAXA Issues 'Warning' to Bithumb's Virtual Asset Lending Service: "Violation of Self-Regulatory Guidelines"

Virtual asset exchange Bithumb has received a warning from the Digital Asset eXchange Alliance (DAXA), after it was determined that its virtual asset lending service violated the self-regulatory guidelines.

On September 23, DAXA announced on its website that Bithumb had breached the scope and lending limit provisions of the "Guidelines for Credit Provision by Virtual Asset Service Providers" from September 5 to the present.

DAXA instructed Bithumb, which received the warning, to post details of the violation, recommendations for corrective action, and a notice to users on its website.

DAXA stated, "If prompt corrective action is not taken, the sanctions may be adjusted through further discussion," and urged Bithumb to faithfully comply with the self-regulatory guidelines to protect users in the future.

DAXA also added, "Bithumb's coin lending service violates the user protection standards set forth in the 'Guidelines for Credit Provision by Virtual Asset Service Providers,' which were jointly established by the Financial Services Commission, the Financial Supervisory Service, and DAXA. We strongly advise users to exercise particular caution when using this service."