South Korea's FSC weighs crypto market-making rules after JPYC spike

South Korea's Financial Services Commission (FSC) is considering introducing a market-making framework for crypto after the yen-pegged stablecoin JPYC traded at roughly 4x its peg on Upbit shortly after its listing. The extreme price swing exposed how thin won-denominated order books can distort prices for newly listed tokens on Korean exchanges.

The regulator is now reviewing whether to legalize or formalize market making for digital assets — a practice currently restricted in South Korea — as a way to improve liquidity and prevent similar dislocations. No framework details or timeline have been disclosed.