South Korea crypto volumes drop 22% as investors shift to stocks

DABA Phase 2 will also decide who can issue won-backed stablecoins. The Bank of Korea wants bank-led issuance to protect financial stability. The Financial Services Commission favors letting any eligible entity participate.

Offshore won-denominated activity is already growing. KRWQ, a won-pegged stablecoin launched on Base in late 2025, reached roughly 1 billion won in daily volume by April 2026. Foreign institutions use it to hedge exposure to South Korean stocks, raising concerns about the country losing control over won liquidity offshore.

Upbit operator Dunamu launched GIWA, an Ethereum Layer-2 network based on the OP Stack, to bring regulated institutional blockchain activity into a domestic ecosystem. The network supports multi-chain compatibility, identity verification and quick settlement.

Tether filed seven trademark applications with South Korea's KIPRIS database, including KRWT and WONTETHER. Markets read both as signals the company is preparing a won-pegged product.

The enduring Bitcoin "Kimchi Premium" shows South Korea's capital controls still distort crypto pricing. Whether DABA Phase 2 tightens or opens the market will determine whether that premium narrows or widens.