South Korea Weighs Crypto Market Makers After JPYC Spike
The agency is weighing a formal system after JPYC traded above 37.6 won on Upbit, highlighting liquidity gaps in South Korea’s crypto market.
- On Monday, South Korea's Financial Services Commission announced a review of whether to allow crypto market-making. Yoo Young-joon, FSC director of digital finance policy, stated the move aims to increase efficiency and stability of the digital asset landscape.
- Earlier this month, the JPYC stablecoin traded at four times its peg on Upbit, prompting this regulatory review. Data released by Park Min-gyu shows 21,219 investors purchased the token at 10% or more above the won-yen rate, spending about 259.9 billion won.
- South Korea's Virtual Asset User Protection Act currently prevents liquidity provision by banning market-making under unfair trading rules. Yoonyoung Choi of the Korbit Research Center argued the domestic market has been experiencing "serious liquidity problems" due to the absence of a formal system.
- Yoo also suggested shifting core exchange functions like order matching and surveillance from self-regulation to public oversight. Proposed legislation could transition crypto businesses to a licensing system, while implementing stricter rules for major shareholders and executives scaled to firm size.
- The FSC plans to introduce a consolidated Digital Asset Basic Act covering stablecoins, disclosures, and internal controls for crypto businesses. This broader framework aims to establish a consistent regulatory environment for the industry, moving beyond the current filing-based system.
20 Articles
20 Articles
South Korea’s FSC Considers Crypto Market Makers After JPYC Surge
South Korea’s FSC is looking at setting up an official market-making framework for digital assets after a big price swing in JPYC (a yen-pegged stablecoin) revealed liquidity gaps on local exchanges. On September 28, FSC Director of Digital Finance Policy Yoo Young-jun said the regulator will look into whether things like market-making are needed to […] Read The Full Article South Korea’s FSC Considers Crypto Market Makers After JPYC Surge On Co…
South Korea’s FSC Reviews Crypto Market-Making Rules After JPYC 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. FSC Director of Digital Finance Policy Yoo Young-jun said on September 28 that the
South Korea Eyes Crypto Market Makers After JPYC Spike
South Korea’s Financial Services Commission is considering whether to introduce a formal market-making system for digital assets as part of the country’s second-stage crypto legislation. Digital Finance Policy Director Yoo Young-jun said on September 28 that market-making could improve efficiency and stability in digital asset markets, even though such activity is currently prohibited under existing ...
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