FSS Adjusts Deposit Interest Rate Competition Among Exchanges

IconCryptoNewsTerminal Staff23 Jul, 2024

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FSS Adjusts Deposit Interest Rate Competition Among Exchanges

The Financial Supervisory Service (FSS) has taken measures to adjust the 'interest rate calculation method' for virtual asset exchanges. The move comes after a recent enforcement of the Virtual Asset User Protection Act, which led to increased competition over interest rate increases. Following the withdrawal of Bithumb's 4.0% interest rate hike, the FSS held an emergency meeting with five major exchanges (UPBIT, BITHUMB, COINONE, KORBIT, GOPAX) on the 24th to re-examine their interest rate calculation methods. The FSS reviewed the banking products used by the exchanges to manage deposits and their methods for calculating deposit interest rates. This action by the FSS aims to address concerns over excessive competition among exchanges, which could potentially harm investors. The adjusted interest rate calculation method is expected to promote a more stable and transparent interest rate environment for virtual asset investments.

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