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 user-protection rules.
Yoo pointed to the recent listing of yen-pegged stablecoin JPYC as an example of why stronger market structure rules may be needed. After launching on Upbit, JPYC briefly climbed to 37.6 won, about 324% above the corresponding won-yen exchange rate, while the sharp price distortion raised concerns over liquidity, exchange oversight and investor protection.
The FSC is also reviewing broader reforms covering exchange licensing, public oversight, disclosures, domestic token issuance and won-based stablecoins. Any market-making framework would still depend on future legislation and detailed regulatory rules, meaning the proposal remains under consideration rather than approved or operational.
Source: Digital Asset.
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