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

South Korea's Financial Services Commission (FSC) is reviewing whether to introduce a formal market-making framework for digital assets after a sharp price distortion involving yen-pegged stablecoin JPYC on Upbit raised concerns over liquidity and investor protection.

The review follows JPYC's September 17 listing on Upbit, the largest crypto exchange in South Korea. The token, designed to maintain a value of 1 JPYC = 1 Japanese yen, opened at around 12 Korean won but climbed to 37.6 won within about an hour.

JPYC briefly traded at more than four times its reference value before the price moved back toward the expected range as additional token supply became available.