The listing of the yen-pegged stablecoin JPYC on South Korea's Upbit exchange on September 17, 2026, resulted in significant price volatility. The token's price jumped from approximately 12 KRW to 37.6 KRW within hours, exceeding its reference value by more than three times before stabilizing the following day.
The price surge occurred because South Korean regulations, specifically the Virtual Asset User Protection Act, classify market-making as potential market manipulation. This prevented liquidity providers from stabilizing the asset. Upbit accounted for over 54% of global JPYC spot volume, with total trading volume exceeding 2.4 trillion KRW in the initial hours.
Data indicates that 21,219 investors purchased JPYC at premiums over 10% above the reference rate, spending roughly 260 billion KRW. By September 21, 3,792 investors held positions with aggregate unrealized losses of nearly 5 billion KRW.
In response, industry participants and lawmakers are urging the Financial Services Commission to legalize market-making for digital assets. This proposal is being considered for inclusion in the upcoming Digital Asset Basic Act to allow for the licensing and oversight of liquidity providers.
