South Korea reviews crypto market-making rules after JPYC peg spike on Upbit
Regulators are reconsidering restrictions on crypto market making after the Japanese yen stablecoin JPYC traded at four times its peg on Upbit this month.
South Korean regulators are reconsidering their approach to crypto market making after the Japanese yen stablecoin JPYC traded at four times its peg on the Upbit exchange this month, according to Cointelegraph.
Market-making restrictions under scrutiny
Under current South Korean rules, crypto market-making activities are effectively restricted because they can fall under manipulation regulations. The JPYC incident has prompted regulators to review whether those restrictions remain appropriate.
- JPYC, a stablecoin pegged to the Japanese yen, spiked to four times its intended value on Upbit.
- South Korea's manipulation rules currently deter market makers from operating.
- Regulators are now weighing changes to the framework.
The review highlights the tension between preventing market manipulation and ensuring sufficient liquidity in crypto markets. No specific timeline or proposed rule changes have been announced.