Korea Considers Market Makers After JPYC Trade Hits 4X Peg

The South Korean Financial Services Commission (FSC) is considering introducing a regulated market-making system for digital assets after a yen-pegged stablecoin trade on Upbit swung dramatically away from its intended value earlier this month.

The development comes amid renewed scrutiny of how South Korea handles market stability and user protection in crypto, particularly given that existing law does not currently carve out market makers from market manipulation rules.

The FSC's director of digital finance policy, Yoo Young-joon, said the commission would 'also review the need to introduce systems such as market-making activities' to increase efficiency and stability in South Korea's digital asset landscape.