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, triggering the FSC review. Data 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 bans market-making under unfair trading rules, preventing liquidity provision. 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 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 with 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 consistent regulatory environment for the industry, moving beyond the current filing-based system.
22 Articles
22 Articles
The South Korean Financial Services Commission is considering introducing a market-making system to the cryptocurrency market, according to a report by South Korean media outlet Digital Asset on September 28. The initial reason for this is... The post "South Korean Financial Services Commission Considering Market-Making System Following JPYC Price Discrepancy" first appeared on NADA NEWS.
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…
Coverage Details
Bias Distribution
- 100% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
