South Korea Weighs Regulating Crypto Market Makers to Ensure Stability

Key Facts

South Korean regulators are reconsidering the role of crypto market makers to improve market stability. Cointelegraph reported that the move follows a significant price spike in the JPYC stablecoin on the Upbit exchange, where the asset traded at four times its intended peg due to a lack of liquidity.

Market making activities are currently restricted in South Korea under strict rules designed to prevent market manipulation. Regulators are now evaluating the introduction of official market makers to provide necessary liquidity and prevent extreme price dislocations, as the current restrictive environment has highlighted vulnerabilities in exchange stability.