South Korea's Financial Services Commission (FSC) is set to follow in the footsteps of US regulators by banning interest payments on stablecoins in its upcoming framework. This move is significant as it reflects a tightening grip on cryptocurrency regulations, which could impact investors and the broader crypto market. As the FSC prepares to unveil this framework later this year, stakeholders are keenly watching how these regulations will shape the future of stablecoin usage in the country.

South Korea's Financial Services Commission (FSC) is set to introduce a new law by the end of 2025 that will ban interest payments on stablecoins. This move aims to enhance financial stability while still encouraging innovation in the digital asset space. The proposed regulation aligns with similar measures in the U.S., reflecting a growing trend among governments to regulate cryptocurrencies more strictly. This is significant as it could shape the future of stablecoin usage and investment in South Korea.