Overview
- FSC Chairman Lee Eok-Won said interest on KRW-pegged stablecoins will be blocked in any form, aligning with the U.S. GENIUS Act.
- Banks would lead issuance under the proposal, fintech firms would act only as technology partners, and crypto exchanges would be prohibited from issuing their own stablecoins.
- The regulator plans to file the second phase of the Virtual Asset User Protection Act this year, with enforcement rules prepared in advance for swift implementation.
- Officials said they are in the final stages of coordination and are reviewing safeguards while exploring payment, remittance, and cross-border settlement uses.
- Policymakers are watching for loopholes highlighted in U.S. debates, including exchange-offered rewards that could undermine an issuer-level interest ban.