JPYC, a stablecoin (cryptocurrency designed to track a reference asset) pegged to the Japanese yen, surged after listing on Upbit, South Korea’s largest exchange, on September 17, 2026. The token opened at roughly 12 KRW, near its intended peg, but climbed to 37.6 KRW within hours before moving back toward the peg the following day. The move was not attributed to an exploit or coordinated pump scheme; instead, South Korea’s Virtual Asset User Protection Act treats market-making as potential market manipulation, effectively preventing professional liquidity providers from smoothing trading in the new listing. Upbit handled more than 54% of global JPYC spot volume shortly after launch, while exchange turnover exceeded 2.4 trillion KRW in the initial hours. More than 21,219 investors bought JPYC at premiums above 10% in the following days, spending roughly 260 billion KRW. By September 21, 3,792 investors still held positions with aggregate unrealized losses approaching 5 billion KRW. The episode has prompted industry participants and lawmakers to urge the Financial Services Commission (FSC), South Korea’s financial regulator, to formally authorize and supervise digital-asset market makers through the forthcoming Digital Asset Basic Act.