South Korea extended a long-running outflow trend as stablecoins continued to leave the country for offshore trading platforms. In June, the nation recorded net stablecoin outflows of 560.3 billion won (about $367 million), keeping South Korea’s streak of monthly net outflows at 18 consecutive months.
The latest numbers, reported by Yonhap News Agency using data from the Financial Supervisory Service (FSS), point to large-scale transfers by South Korea’s biggest crypto venues. Yonhap said the five major exchanges—Upbit, Bithumb, Coinone, Korbit and Gopax—sent 2.7 trillion won (about $1.81 billion) in stablecoins overseas in June while receiving 2.2 trillion won (about $1.44 billion) from foreign platforms.
Key takeaways
June net stablecoin outflows from South Korea totaled 560.3 billion won (about $367 million), extending 18 straight months of monthly net exits.
South Korea’s five largest exchanges collectively transferred 2.7 trillion won in stablecoins offshore in June while receiving 2.2 trillion won from abroad.
Yonhap reported that demand for products unavailable or restricted domestically—such as certain derivatives, tokenized real-world assets (RWAs), DeFi, and staking—was cited as a driver of the transfers.
Opposition lawmakers and regulators are calling for stronger oversight and updated investor protection rules as cross-border activity continues.
Policy proposals discussed alongside the outflows include interim stablecoin licensing guidance and potential phasing of stablecoin regulation before a broader Digital Asset Basic Act is finalized.
Stablecoin exits keep growing despite ongoing regulation work
According to Yonhap, the June figure comes directly from FSS data shared with a lawmaker. The data was obtained through People Power Party lawmaker Lee Jong-wook, who has repeatedly raised concerns about how the government supervises cross-border crypto activity.
While the net outflow headline is negative, the underlying exchange-level flows highlight a more nuanced picture. Yonhap said local exchanges exported stablecoins to offshore platforms at a higher pace than they imported them—2.7 trillion won sent versus 2.2 trillion won received—resulting in the net outflow position.
Market participants quoted by Yonhap tied the transfers to practical constraints for users operating within South Korea’s market structure. They pointed to demand for services or token products that are restricted, not yet available, or otherwise limited on domestic venues. Those categories included overseas derivatives, tokenized real-world assets (RWAs), decentralized finance, and staking products.
Lawmakers push for a fresh look at investor protection
The stablecoin outflows have drawn renewed pressure on regulators to address investor protection gaps. Lee Jong-wook urged the government to re-examine its supervisory framework for how investors are protected when activity shifts offshore and users access services subject to different rules and oversight.
As reported by The Korea Times, Lee said authorities must “comprehensively examine” investor protection and supervisory frameworks and “move swiftly to improve regulations” in response to continuing stablecoin outflows.
The core tension for policymakers is straightforward: if domestic rules or product availability are slower to develop than offshore options, users may route capital abroad rather than use locally supervised services. That dynamic can leave regulators chasing activity after it has moved to less directly controlled venues—especially when stablecoins are used as on-ramps for broader crypto strategies.
Proposed stablecoin rules and reporting expansions
The outflows are unfolding while South Korea works toward a fuller legal framework for digital assets. Cointelegraph reported earlier that Thursday’s policy report recommended authorities introduce interim licensing guidance and phase in stablecoin regulations before the Digital Asset Basic Act is finalized, rather than waiting for the full law to take effect.
Under the proposed approach referenced by Cointelegraph, the Digital Asset Basic Act would aim to create South Korea’s first comprehensive digital asset framework, covering stablecoin issuance, disclosure standards, and market activity rules. However, the report also underscores that lawmakers have yet to reconcile multiple proposals—particularly disagreements about which institutions would be authorized to issue won-pegged stablecoins, a point flagged as a contributor to delays.
Separately, Cointelegraph noted that South Korean regulators have sought to expand reporting requirements for crypto transfers. On June 22, the Financial Intelligence Unit (FIU) proposed extending Travel Rule reporting requirements to transactions below 1 million won (roughly $650). The Travel Rule proposal is part of an effort to improve traceability of crypto transfers across jurisdictions, reducing the ability to move value without the expected reporting coverage.
Yonhap’s coverage also reflected the FIU’s broader concern: it urged stronger action against unregistered overseas exchanges serving South Koreans. The FIU argued that licensing and supervision can vary widely across jurisdictions, creating opportunities for regulatory arbitrage—an issue that the continuing stablecoin outflows bring into sharper focus.
What investors and traders should watch next
As South Korea’s stablecoin outflow streak continues, the next milestones will likely be the details of how interim stablecoin licensing is implemented and how quickly reporting rules and enforcement measures are tightened for cross-border activity. For market participants, the key question is whether regulatory changes will narrow the gap between what users can access domestically versus offshore—without simply pushing activity into new, less supervised channels.
This article was originally published as South Korea Sees $367M Stablecoin Outflows in June, Report Shows on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.