South Korea Stablecoin Outflows Hit 18-Month Streak at $367M

The figures arrived as policymakers work toward the Digital Asset Basic Act, intended to establish South Korea's first comprehensive framework for stablecoin issuance, disclosures and market conduct. A policy report recommended temporary licensing guidance and phased stablecoin rules before the broader legislation is completed.

Progress remains delayed because lawmakers disagree over which institutions should be allowed to issue stablecoins pegged to the won. Cross-border activity continues to expand while the domestic rulebook remains unfinished and politically contested.

The Financial Intelligence Unit has proposed extending Travel Rule reporting to crypto transfers below 1 million won, approximately $650. It also called for stronger action against unregistered overseas exchanges serving South Korean users.

Lawmaker Lee Jong-wook urged the government to reassess investor protection and supervision as the outflow streak continues. The emerging policy response focuses on closing reporting gaps and reducing regulatory arbitrage across jurisdictions.

Tighter monitoring may not address the underlying attraction of offshore products. The unresolved question is whether authorities can slow capital flight without expanding legitimate options available at home.