South Korean Stablecoin Outflows Surpassed $367M in June: Report

Stablecoins have recorded net outflows from South Korean exchanges for 18 straight months as regulators consider stricter oversight of cross-border cryptocurrency activity.

South Korea recorded 560.3 billion won ($367 million) in stablecoin outflows to overseas exchanges in June, extending the country’s run of monthly net stablecoin outflows to 18 consecutive months.

The figures were drawn from Financial Supervisory Service (FSS) data obtained by Yonhap News Agency through People Power Party lawmaker Lee Jong-wook. In June, South Korea’s five largest cryptocurrency exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—sent 2.7 trillion won ($1.81 billion) in stablecoins to overseas platforms while receiving 2.2 trillion won ($1.44 billion) from foreign exchanges.

Market participants cited by Yonhap attributed the outflows to demand for products that are restricted or unavailable on domestic exchanges, including overseas derivatives, tokenized real-world assets (RWAs), decentralized finance (DeFi), and staking services.

Lee has urged the government to reassess its approach to investor protection and oversight of cross-border cryptocurrency activity as stablecoin outflows continue. “The government must comprehensively examine its investor protection and supervisory frameworks again and move swiftly to improve regulations,” he said, according to The Korea Times.

South Korean Considers Tougher Rules for Offshore Crypto Activity#

The outflows come as South Korea continues developing a broader legal framework for digital assets. On Thursday, a policy report recommended that regulators introduce interim licensing guidance and gradually implement stablecoin rules before the Digital Asset Basic Act is finalized.

The proposed legislation would establish South Korea’s first comprehensive framework for digital assets, including regulations covering stablecoin issuance, disclosure requirements, and broader market activity. However, lawmakers have not yet reconciled the multiple proposals, with disagreements over which institutions should be permitted to issue won-pegged stablecoins continuing to delay the process.

South Korean regulators have also moved to expand reporting requirements for cryptocurrency transfers. On June 22, the Financial Intelligence Unit (FIU) proposed extending Travel Rule reporting obligations to transactions below 1 million won (about $650).

The FIU also urged stronger enforcement against unregistered overseas cryptocurrency exchanges serving South Korean users. The agency said differences in licensing and regulatory oversight across jurisdictions created opportunities for regulatory arbitrage, a concern further highlighted by the country’s ongoing stablecoin outflows.