South Korea Considers Market Making System for Cryptocurrency Market
The Financial Services Commission (FSC) of South Korea is considering introducing a market making system to improve the efficiency and stability of the cryptocurrency market. This was revealed by Yu Yong-jun, the digital financial policy official at the FSC, during a recent conference. Market making involves companies continuously offering both buy and sell prices to facilitate trades.
Currently, the existing Digital Asset Protection Act does not allow for market making, but an exception is made for market makers. Yu acknowledged that there are issues with market regulation and pointed to the rapid price increase of JPYC, a Japanese yen-stablecoin listed on Upbit, as an example. He stated that the price surged to 37.6 won, more than four times its actual value.
The FSC is considering introducing market making and other regulations to improve market efficiency and stability. Yu also mentioned that it may be time to move from self-regulation to public oversight of exchanges' core functions such as trade settlement and abnormal transaction monitoring.