FSC Eyes Market-Making Rules for Crypto Amid JPYC Price Volatility

The Financial Services Commission (FSC) of South Korea is considering implementing market-making rules for digital assets after a recent price swing in JPYC, a yen-pegged stablecoin, revealed liquidity gaps on local exchanges.

JPYC's listing on Upbit on September 17 saw its price surge past its peg, briefly reaching four times its actual value. This was attributed to thin liquidity rather than any change in the coin's true value.

FSC Director of Digital Finance Policy Yoo Young-jun stated that regulators will explore market-making rules to make crypto markets more efficient and stable. However, this does not mean that market makers are being legalized immediately, as the framework is still under consideration.