The Financial Services Commission is studying the legalization of professional liquidity providers to curb extreme price swings in the digital asset market. The agency initiated the study after the yen stablecoin JPYC traded at more than 4 times its peg on the Upbit exchange, creating a gap between the asset's market price and its theoretical value.

Current South Korean investor protection rules categorize crypto market making as an unfair market activity equivalent to price manipulation. By reviewing the current ban, the FSC intends to increase the overall stability and efficiency of the nation's digital asset ecosystem.