South Korea's Financial Services Commission (FSC) is considering introducing a market maker system for virtual assets to enhance market efficiency and stability. Digital Finance Policy Officer Ryu Young-jun indicated that while the current Virtual Asset Users Protection Act prohibits market making activities, the FSC intends to revisit and evaluate this mechanism during the second phase of legislative development.
The proposed framework would require exchanges to maintain sufficient capital and operational capabilities, potentially shifting core functions such as trade execution and abnormal transaction monitoring from self-regulation to statutory oversight. The initiative also aims to strengthen governance rules for major shareholders and management, promote business diversification, establish digital asset issuance and disclosure systems, facilitate won-denominated stablecoins, and reinforce user protection measures.
South Korea FSC Considers Introducing Market Maker System for Virtual Assets
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