Bithumb has significantly adjusted its crypto lending operations. As of September 24, the exchange reduced the maximum loan-to-collateral ratio for its “Lending Plus” service from 200% to 85%. Going forward, users can only borrow up to 85% of their held assets.
The move reflects South Korea’s new “Guidelines for Virtual Asset Service Providers on Credit Provision,” announced earlier this month. Regulators deemed that crypto lending and borrowing services expose investors to excessive leverage and risk, prohibiting over-collateralized lending and requiring exchanges to provide loans only within the scope of their own reserves.
Alongside the service cutback, Bithumb expanded its list of lendable assets. Seven new tokens—Ethereum Classic (ETC), Chainlink (LINK), TRON (TRX), KAIA, Sei (SEI), Ethereum Name Service (ENS), and Sandbox (SAND)—were added. The move appears aimed at maintaining user engagement while complying with regulations to reduce risk exposure.
Industry watchers note that the change follows scrutiny from the Digital Asset eXchange Alliance (DAXA), which previously warned that Bithumb’s lending services violated the new guidelines. In particular, Bithumb’s past allowance of up to 4x leverage drew regulatory attention and is believed to have triggered the latest adjustment.
For investors, the change reduces opportunities to pursue leveraged gains through lending. While potential profits are now limited, the risk of forced liquidation and cascading losses during market downturns is also lowered. Bithumb’s approach reflects a balancing act—expanding supported assets to keep the service attractive, while tightening loan limits in line with oversight.
Looking ahead, further restrictions or even suspension of lending services remain possible if regulators move to formalize or toughen enforcement of the guidelines. The adjustment signals a broader trend across South Korea’s digital asset sector: a shift toward reduced leverage and stronger risk management.
