South Korea reviews crypto market-making rules
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- South Korea’s Financial Services Commission is considering a market-making system for digital assets.
- JPYC (JPYC) rose from 12 won to 37.6 won on Upbit.
- The review follows concerns about liquidity, price gaps and user losses.
South Korea’s Financial Services Commission has begun considering market-making rules for digital assets.
The review follows JPYC (JPYC) opening at 12 Korean won before reaching 37.6 won.
“We will also review the need to introduce systems such as market-making activities to increase the efficiency and stability of the digital asset landscape,” said Yoo Young-joon, FSC director of digital finance policy, at a Seoul conference on Monday.
Upbit launched JPYC trading on September 17, with limited liquidity linked to the price spike.
“There were also criticisms that user losses occurred from the price surge after the JPYC listing, so demands for discipline in this area are expanding,” Yoo said.
South Korea’s Virtual Asset User Protection Act currently does not exempt market-making from manipulation rules.
The FSC is also reviewing a Digital Asset Basic Act covering stablecoins, exchanges, disclosures and internal controls.
The initiative could alter how South Korea balances crypto liquidity with market-manipulation controls.
