South Korea Reconsiders Crypto Market Makers After JPYC Price Surge

The Financial Services Commission (FSC) in South Korea is reconsidering its stance on market makers in the crypto space following the recent surge of JPYC, a yen-backed stablecoin, on Upbit.

JPYC traded at more than four times its intended value after its listing on September 17, with prices reaching as high as 37.6 won. This sharp price movement led to losses for some Korean traders who bought the token at prices above 10% of the yen-won reference rate.

The FSC Director of Digital Finance Policy, Yoo Young-joon, stated that the regulator will review the need for market-making activities to improve the efficiency and stability of the digital-asset market. However, any new system would require further regulatory and legislative work.