South Korea Bans Interest Payments on Stablecoins, Follows US Model

South Korea has implemented a ban on interest payments for stablecoins used in transactions or held by users. This measure was announced by the Financial Services Commission Chairman, Lee Eui-yeon, at the National Assembly’s audit session on October 20th. He cited the US’s Genius Act as guiding principle for this move and plans to establish a bank-led alliance model restricting fintech companies from issuing stablecoins independently. This model aims to prevent their independent issuance, promoting partnerships with banks instead.