South Korea Reviews Crypto Market-Making Rules After JPYC Price Distortion

South Korea's Financial Services Commission (FSC) is reviewing the need for market-making activities in the digital-asset market after a sharp price distortion involving yen-pegged stablecoin JPYC on Upbit raised concerns over liquidity and investor protection.

The FSC review follows JPYC's September 17 listing on Upbit, where the token briefly traded at more than four times its reference value. The move drew attention to losses among retail traders, with data showing that 21,219 investors bought JPYC at prices over 10% above its reference value during the five days following the listing.

The FSC Director of Digital Finance Policy Yoo Young-jun said on September 28 that the regulator would review the need for market-making activities to improve the efficiency and stability of the digital-asset market. However, this does not represent an immediate rule change, and existing restrictions on market-making remain in place.