South Korea's Financial Services Commission is considering introducing a virtual asset market maker system, according to PANews

A Proposal to Rethink Liquidity Rules

PANews reported on September 28, citing Digital Asset, that the Financial Services Commission of South Korea is considering introducing a market maker system for virtual asset markets to improve market efficiency and stability. The proposal matters because the current Virtual Asset User Protection Act prohibits market-making activity. The commission's statement indicates that it intends to revisit that restriction in the second stage of the legislative process.

Exchange Duties Could Shift From Self-Regulation to Public Rules

Ryu Young-jun, the commission's digital finance policy officer, said exchanges would need sufficient capital and operational capability. Core functions such as trade matching, trading support and monitoring of abnormal trading could move from self-regulatory oversight to public-law regulation. Governance rules tied to major shareholders and management are also expected to be strengthened.

Possible Impact on Disclosure, Stablecoins and User Protection

If the legal framework is updated, it could promote more diversified business models, a more credible trading environment, clearer digital asset issuance and disclosure systems, development of a Korean won stablecoin, and stronger user protection. For readers, the main takeaway is that South Korea is signaling a regulatory rethink around liquidity provision in virtual asset markets, but no confirmed change to market-making activity has been described as already in force.