South Korea’s Financial Services Commission is reviewing whether to introduce a formal crypto market-making system after JPYC, a yen-linked stablecoin, surged on Upbit amid thin Korean-won liquidity. JPYC opened at 12 won on Sept. 17 and reached 37.6 won within an hour, compared with an intended value of about 8.8 won, or 1 Japanese yen. FSC Director of Digital Finance Policy Yoo Young-joon said the regulator would examine market-making arrangements to improve digital-asset market efficiency and stability after criticism over user losses. The Virtual Asset User Protection Act contains no exemption for market making from market-manipulation provisions, effectively restricting continuous two-sided quoting. The FSC has not approved an exemption, timetable or pilot program, and any future framework would need to operate alongside exchange surveillance and reporting requirements.