Industry participants in South Korea are urging regulators to look beyond issuer requirements, minimum capital thresholds and reserve assets when designing future rules for won-denominated stablecoins. They say the framework should also include safeguards tied to initial circulating supply, issuance and redemption, and secondary-market liquidity.
The call follows sharp price dislocations seen after several stablecoins were listed on local exchanges. JPYC, a yen stablecoin, climbed to 37.6 won on Upbit after listing, while its reference price at the time was about 8.8 won. PayPal USD (PYUSD) also rose from 1,379 won to 1,760 won at one point. Earlier, EURC reached 7,860 won on Bithumb, more than 400% above the previous day’s close.
According to the industry view cited in the report, reserve assets can support redemption but cannot by themselves prevent short-term price distortions in the secondary market. Suggested measures include studying the introduction of market makers or liquidity providers, disclosure rules for price deviations, and limits on market-price orders.
South Korean industry participants are calling for future regulation of won-denominated stablecoins to go beyond oversight of issuers, minimum capital requirements and reserve assets, according to Techub News. They say the framework should also include safeguards for initial circulating supply, issuance and redemption, and secondary-market liquidity.
The push comes after several stablecoins showed clear price dislocations following listings on South Korean exchanges. JPYC, a yen stablecoin, rose as high as 37.6 won after listing on Upbit, while its reference price at the time was about 8.8 won. PYUSD also climbed from 1,379 won to 1,760 won at one point. EURC previously reached 7,860 won on Bithumb, more than 400% above the previous day’s close.
Industry participants said reserve assets can support redemption, but cannot on their own prevent short-term price distortions in the secondary market. They suggested studying measures such as introducing market makers (MMs) or liquidity providers (LPs), requiring disclosure of price deviations, and limiting market-price orders.
The report cited Wu Blockchain.
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