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South Korea reviews rules for crypto market makers after JPYC spike

South Korea’s Financial Services Commission said JPYC, a yen-backed stablecoin, traded up to 4.0 times its peg on Upbit after launching Sept. 17.

Reported · Written up by our desk · Regulation

South Korea is reconsidering how it oversees crypto market makers after a yen-backed stablecoin, JPYC, traded far above its peg on the Upbit exchange earlier this month, according to Cointelegraph.

The Financial Services Commission said crypto market making is effectively restricted under South Korea’s manipulation rules, but it is weighing a market-making system for digital assets. The regulator’s review follows JPYC’s sharp move shortly after trading began.

Cointelegraph reports that Upbit opened JPYC trading on Sept. 17 at 12 Korean won per JPYC and it later reached a high of 37.6 Korean won in about an hour, more than four times its initial value. The spike was attributed to limited liquidity on the exchange.

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