South Korean crypto exchanges sent $367M more in stablecoins offshore than they received in June, the 18th straight monthly outflow, as traders seek derivatives and DeFi products unavailable domestically.
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South Korean crypto exchanges sent 560.3 billion won ($367 million) more in stablecoins to overseas platforms than they received back in June, the 18th straight month of net outflows. The data comes from the Financial Supervisory Service, obtained by Yonhap News Agency through People Power Party lawmaker Lee Jong-wook.
Upbit, Bithumb, Coinone, Korbit and Gopax together shipped 2.7 trillion won ($1.81 billion) in stablecoins offshore and took in 2.2 trillion won ($1.44 billion) from foreign platforms, the FSS figures show.
Market participants told Yonhap the persistent gap reflects demand for products South Korean exchanges do not offer: overseas derivatives, tokenized real-world assets, decentralized finance yield, and staking. Domestic platforms operate under tight restrictions on leveraged trading and foreign token listings, pushing users to Hong Kong, Singapore and U.S. venues that carry those products.
Lee called on the government to revisit its approach to investor protection and cross-border crypto oversight. “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.
The outflow streak is running ahead of South Korea's broader digital-asset rulemaking. On Thursday a policy report recommended interim licensing guidance and phased-in stablecoin rules before the Digital Asset Basic Act is finalized. That act would be the country's first comprehensive crypto framework, covering stablecoin issuance, disclosures and market conduct.
Lawmakers have not reconciled competing proposals. A central sticking point: which institutions should be allowed to issue won-pegged stablecoins. That disagreement has pushed back the legislative timeline, leaving the current regulatory patchwork in place while outflows continue.
The Financial Intelligence Unit added pressure on June 22, proposing to extend Travel Rule reporting requirements to transactions below 1 million won (about $650). The FIU also urged stronger action against unregistered overseas exchanges serving South Korean users. The agency said uneven licensing across jurisdictions creates opportunities for regulatory arbitrage, a pattern the stablecoin outflow data underscores.
South Korea's five major exchanges together hold roughly 90% of the domestic spot market. If outflows persist at the June pace, the country will have sent more than 6 trillion won offshore over the full 18-month stretch.
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