South Korean stablecoin outflows top $367M in June: Report
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
In June, South Korea experienced stablecoin outflows amounting to 560.3 billion won ($367 million) to overseas exchanges, marking 18 consecutive months of net outflows. Data from the Financial Supervisory Service (FSS), shared by lawmaker Lee Jong-wook through Yonhap News Agency, shows South Korea’s five major crypto exchanges transferred a total of 2.7 trillion won ($1.81 billion) offshore while receiving 2.2 trillion won ($1.44 billion) from foreign platforms. The transfers are attributed to demand for products not offered or restricted on domestic exchanges.
Why it matters
This continued outflow highlights regulatory and investor protection challenges in South Korea's crypto market. Lawmaker Lee Jong-wook emphasized the need for the government to reassess investor protections and supervision of cross-border crypto activities. Additionally, these outflows draw attention to regulatory arbitrage caused by uneven licensing and supervision across jurisdictions.
Key context
South Korea is in the process of finalizing the Digital Asset Basic Act, which would establish the country’s first comprehensive framework for digital assets, including stablecoin regulations. There are ongoing disagreements among lawmakers about which institutions should be permitted to issue won-pegged stablecoins, causing delays. Meanwhile, the Financial Intelligence Unit (FIU) has proposed expanding Travel Rule reporting requirements and intensifying measures against unregistered overseas exchanges used by South Koreans.
Key numbers and entities
The five major South Korean exchanges involved are Upbit, Bithumb, Coinone, Korbit, and Gopax. The total stablecoin transferred offshore in June was 2.7 trillion won ($1.81 billion), with incoming transfers from abroad of 2.2 trillion won ($1.44 billion). The net outflow was 560.3 billion won ($367 million). Lawmaker Lee Jong-wook, the Financial Supervisory Service (FSS), Yonhap News Agency, and the Financial Intelligence Unit (FIU) are key entities mentioned.
What remains unclear
The report does not specify the exact nature of the offshore products driving demand or the detailed regulatory proposals still under discussion. It also does not clarify the timeline for finalizing the Digital Asset Basic Act or the specific investor protection measures to be implemented.