South Korea's Democratic Party drafts bill to ban interest on won stablecoins

The Democratic Party's Digital Asset Task Force has drafted a consolidated bill for a new Digital Asset Basic Act that would prohibit paying interest on won-denominated stablecoins, ZDNet Korea reported. Under the proposed legislation, stablecoin issuers would be barred from paying interest to holders. The ban covers not only cash but all forms of property value, including discounts and reward points, effectively prohibiting all monetary and non-monetary incentives for holding the assets. Meanwhile, a proposal to establish a won-denominated stablecoin consortium was not included in the bill. The task force is scheduled to hold a private meeting with private sector advisors to discuss the draft on Feb. 24.