June Stablecoin Withdrawals from South Korean Exchanges Exceed $367M: Data
For the 18th month in a row, stablecoins continue to exit South Korean crypto platforms as authorities consider implementing stricter controls on international cryptocurrency transactions.
During June, South Korea experienced net stablecoin outflows totaling 560.3 billion won ($367 million) to international exchanges, marking the 18th straight month that the nation has recorded negative monthly net flows of stablecoins.
This data originates from the Financial Supervisory Service (FSS) and was secured by Yonhap News Agency via People Power Party lawmaker Lee Jong-wook. The country's top five cryptocurrency trading platforms — Upbit, Bithumb, Coinone, Korbit and Gopax — sent 2.7 trillion won ($1.81 billion) worth of stablecoins to international destinations during June while obtaining 2.2 trillion won ($1.44 billion) from exchanges based abroad.
Industry players referenced by Yonhap linked these transfers to investor appetite for financial instruments that are either restricted or not offered on South Korean exchanges, including international derivatives products, tokenized real-world assets (RWAs), decentralized finance applications and staking opportunities.
Lee has urged governmental authorities to reevaluate their approach to safeguarding investors and monitoring international cryptocurrency transactions in light of persistent stablecoin outflows. "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 Korea weighs tighter rules for offshore activity
These continuing outflows occur while South Korea advances efforts to establish a more comprehensive regulatory structure for digital assets. This past Thursday, a policy document suggested that regulators should implement interim licensing guidelines and gradually introduce stablecoin regulations prior to the complete enactment of the Digital Asset Basic Act.
The legislation under consideration would establish South Korea's initial complete digital asset regulatory regime, incorporating provisions for stablecoin creation, transparency requirements and trading oversight. Nevertheless, legislators have not yet aligned several competing proposals, with disputes regarding which entities should receive authorization to issue stablecoins pegged to the won causing implementation setbacks.
Regulatory bodies in South Korea have additionally pursued broader disclosure obligations for cryptocurrency transfers. On June 22, the nation's Financial Intelligence Unit (FIU) recommended expanding Travel Rule compliance requirements to cover transactions valued under 1 million won (approximately $650).
The FIU additionally advocated for more aggressive measures targeting unlicensed foreign exchanges that cater to South Korean users. The organization stated that inconsistent licensing standards and supervision across different jurisdictions generated possibilities for regulatory arbitrage, a risk highlighted by the nation's ongoing stablecoin outflows.