South Korea Weighs Market-Maker Rules After JPYC Peg Spike

The South Korean Financial Services Commission (FSC) is considering implementing market-making rules for digital assets after a yen-pegged stablecoin, JPYC, briefly traded at extreme prices on Upbit.

JPYC's debut on September 17 saw its price spike to more than four times the peg within an hour due to limited liquidity. This episode has reopened debate about market-making mechanisms in South Korea's digital asset landscape.

The current Virtual Asset User Protection Act lacks a market-making exemption, restricting market makers from providing liquidity without conflicting with market manipulation provisions.

FSC officials are reviewing whether to introduce market-making systems to improve trading efficiency and stability. This move aligns with broader efforts to consolidate crypto regulation in South Korea.