Cryptocurrency exchange Bithumb received a warning from the domestic cryptocurrency exchanges' joint council (DAXA) over its cryptocurrency lending service.
On the 23rd, DAXA issued a notice warning of violations related to Bithumb's "Coin Lending (Lending Plus)" service and recommended that Bithumb comply in line with the guidelines. According to DAXA, since the 5th of this month it has violated provisions of the "Guidelines on Credit Extension Operations for Virtual Asset Service Providers" concerning the scope of lending services and lending limits.
DAXA also said that if Bithumb does not promptly correct the issue, the content of sanctions could be adjusted through further discussions, and urged faithful compliance with the self-regulatory plan to protect users going forward. Looking at DAXA's past disciplinary cases, cryptocurrency exchange GOPAX once received a three-month voting rights restriction after listing WEMIX, a cryptocurrency issued by Wemade, in violation of self-regulatory procedures.
DAXA then posted on its website a user notice stating that Bithumb Co., Ltd.'s coin lending violates the user protection standards in the "Guidelines on Credit Extension Operations for Virtual Asset Service Providers," jointly prepared by the Financial Services Commission, the Financial Supervisory Service, and DAXA, and advising users to exercise special caution when using the service.