The South Korean Financial Services Commission plans to ban interest payments on stablecoins and will submit relevant legislation within the year

ChainCatcher news, according to Yonhap News Agency, Lee Eok-yeon, chairman of the Financial Services Commission of South Korea, stated during a National Assembly audit that, in principle, interest payments are not allowed for payment-type stablecoins due to holding or usage.

Lee Eok-yeon mentioned that South Korea will follow the relevant principles of the U.S. "Genius Act" to prohibit such practices. In addition, he stated that they will explore a bank-led alliance model, limiting fintech companies to being only technology partners, and prohibiting virtual asset exchanges from issuing stablecoins independently.

Regarding the second phase of the virtual asset bill, he confirmed that it will be submitted within the year and is currently in the final coordination stage. He also mentioned the overseas demand potential for stablecoins in areas such as virtual asset trading, payment settlement, and cross-border remittances, planning to expand applications and prepare relevant work in advance.