South Korea's Financial Services Commission plans to ban stablecoin interest payments and submit relevant bill this year

According to Yonhap News Agency, South Korea's Financial Services Commission Chairman Lee E-won stated during a parliamentary inspection on October 20th that, in principle, interest payments on payment-type stablecoins generated by holding or using them will not be permitted. Lee stated that South Korea will follow the principles of the US Genius Act to prohibit such practices. He also stated that South Korea will explore a bank-led consortium model, restricting fintech companies to technology partnerships and prohibiting virtual asset exchanges from independently issuing stablecoins. Regarding the second phase of the virtual asset bill, he confirmed that it will be submitted this year and is currently in the final coordination stage. He also highlighted the potential overseas demand for stablecoins in areas such as virtual asset trading, payment settlement, and cross-border remittances, and stated that he plans to expand their application and prepare for related work in advance.