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South Korea weighs crypto market-making rules after JPYC stablecoin surge
South Korea’s Financial Services Commission (FSC) is considering the introduction of a market-making system for digital assets to improve market efficiency and stability. This regulatory reassessment follows a volatile debut of JPYC, a yen-pegged stablecoin, on the Upbit exchange on September 17.
During its initial trading period, JPYC’s price surged from approximately 12 Korean won to 37.6 won within an hour, more than tripling its intended peg. This extreme volatility was attributed to low liquidity and the fact that current South Korean law, the Virtual Asset User Protection Act, classifies market-making activities as potential market manipulation, effectively preventing professional liquidity providers from stabilizing the asset.
The price spike resulted in significant investor impact. Data presented to lawmakers indicated that over 21,000 investors purchased the token at premiums exceeding 10% above the reference rate. By September 21, several thousand investors were reported to be holding positions with aggregate unrealized losses nearing 5 billion KRW.
The FSC is currently working toward a consolidated Digital Asset Basic Act, which is expected to establish a comprehensive framework for stablecoin issuance, exchange operations, and internal controls.
Entities
Financial Services Commission · JPYC · South Korea · Upbit · Yoo Young-joon
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The FSC plans to introduce a consolidated Digital Asset Basic Act covering stablecoins and exchange rules. www.spacemoney.com.br · coincodecap.com
- [○ 1 SOURCE] More than 21,219 investors purchased JPYC at premiums exceeding 10% above the reference rate. cryptobriefing.com
- [○ 1 SOURCE] Approximately 3,792 investors held positions with aggregate unrealized losses approaching 5 billion KRW by September 21. cryptobriefing.com
- [● 3 SOURCES] JPYC trading opened on Upbit on September 17 at approximately 12 Korean won. www.spacemoney.com.br · coincodecap.com · cryptobriefing.com
- [● 3 SOURCES] The Virtual Asset User Protection Act currently treats market-making activities as potential market manipulation. www.spacemoney.com.br · coincodecap.com · cryptobriefing.com
- [● 3 SOURCES] The price of JPYC rose to 37.6 won within an hour of listing, more than triple its reference value. www.spacemoney.com.br · coincodecap.com · cryptobriefing.com
- [● 2 SOURCES] The FSC is considering a market-making system for digital assets to increase efficiency and stability. www.spacemoney.com.br · coincodecap.com