South Korea Weighs Market Makers for Crypto Stability

The Financial Services Commission (FSC) in South Korea is considering introducing a regulated market-making system for digital assets after a recent incident involving the yen-pegged stablecoin JPYC.

In September, Upbit listed JPYC at a price of 12 Korean won per unit but it surged to over four times that value within an hour due to limited liquidity. The FSC's director of digital finance policy, Yoo Young-joon, said the commission will review introducing systems such as market-making activities to increase efficiency and stability in South Korea's digital asset landscape.

The current law does not include a carve-out for market makers from market manipulation rules, which means they are constrained in their ability to provide liquidity. Yoo noted that users experienced losses following the price surge after the listing, adding that calls for stricter discipline in this area are growing.