Regulation· ★★★· neutral·

South Korea weighs allowing market making on crypto exchanges

  • —Korea's FSC is reviewing whether to allow market making on crypto exchanges
  • —Min Byoung-dug's bill would exempt market making from the price-manipulation ban
  • —Spreads above 100 bp: Upbit 0.9% of pairs, Bithumb 8.3%, Coinone 55.6%, Korbit 76.9%
  • —MiCA and Hong Kong's SFC bar exchanges from proprietary trading but allow external market makers
Why it matters: Allowing market making could narrow spreads and cut costs on smaller Korean exchanges, but raises manipulation and conflict-of-interest risks.
Source: Blockmedia
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