Korea Considers Market-Making System After JPYC Price Spike

The Financial Services Commission (FSC) in South Korea is considering implementing a market-making system for digital assets, following a recent incident where a stablecoin linked to the Japanese yen traded at four times its peg on a major exchange.

The JPYC stablecoin was listed on Upbit on September 17 and saw its price spike from 12 Korean won to 37.6 Korean won in just an hour, more than quadrupling its market value.

FSC director Yoo Young-joon stated that the commission will review introducing systems such as market-making activities to increase efficiency and stability in the digital asset landscape.

This move comes as part of South Korea's efforts to establish a broader regulatory framework for its crypto industry, including rules for stablecoins and exchanges.