Financial Commission Considers Introducing Market Making System for Virtual Assets

The Financial Services Commission is considering the introduction of a market-making system for virtual assets. Yoo Young-jun, the Director of Digital Finance Policy at the Commission, mentioned the need for market-making activities to enhance the efficiency and stability of digital assets during the 'The Bridge Summit 2026' held at the Chosun Palace Hotel in Gangnam, Seoul, on the 28th. Currently, the Act on the Protection of Users of Virtual Assets prohibits market-making activities, which are regarded as unfair trading practices such as price manipulation. Yoo emphasized the fairness and accountability of exchanges and raised the necessity of transitioning from self-regulation to a public regulatory framework. He explained that there is an increasing demand for regulation, citing cases of user harm resulting from price surges following the listing of JPYC. He projected that if the legislation is established, it would lead to diversification of industries, the establishment of a trust-based trading environment, the issuance and disclosure system for domestic digital assets, the introduction of a Korean won stablecoin, and enhanced user protection. Additionally, he added that businesses might transition from a reporting system to a licensing and registration system, creating an environment where users can trade with confidence.