Key Points
- South Korean exchanges recorded 18 consecutive months of stablecoin net outflows.
- Regulatory limits drive traders to offshore platforms offering broader products.
South Korea’s five largest won-based exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax — sent 2.76 trillion won in stablecoins overseas in June 2026.
They received 2.20 trillion won in return, resulting in a net outflow of 560.3 billion won (about $367 million), according to the Financial Supervisory Service.
The June figures extended a streak of uninterrupted net stablecoin outflows that began in January 2025.
The pattern suggests persistent structural factors rather than short-term volatility.
At the time of reporting, the total crypto market capitalization stood at $2.22 trillion, down 1.1% over 24 hours, with daily trading volume at $16.9 billion, according to CoinGecko.
Regulatory Limits and Offshore Migration
Domestic exchanges operate under the Specific Financial Information Act, which enforces anti-money laundering rules and limits access to certain products.
High-leverage derivatives, DeFi pools, liquid staking, and many real-world asset protocols are not broadly available on locally licensed platforms.
A Korea Times report dated August 2 noted that June’s net outflows equaled 77.6% of Korean investors’ net purchases of overseas stocks.
In the second quarter of 2026, net stablecoin outflows reached 1.69 trillion won, surpassing 1.62 trillion won in net foreign stock sales.
Regulatory data indicates that products such as crypto derivatives and RWA instruments are largely unavailable on domestic venues.
Offshore exchanges including Binance have attracted users by listing contracts tied to major Korean equities.
These offshore offerings provide higher leverage and product diversity compared with domestic exchanges.
As a result, stablecoins are increasingly transferred abroad to access those markets.
Shifting Domestic Market Shares
Within Korea’s stablecoin segment, trading shares have shifted among local platforms.
Coinone recorded the highest average daily stablecoin trading volume in June at 84.58 billion won, representing 34.8% of the market after introducing zero-fee USDC trading in October 2025.
Bithumb followed with 75.57 billion won (31.1%), while Upbit posted 73.03 billion won (30.1%), according to FSS data cited by the Korea Times.
Earlier in January 2025, Upbit and Bithumb together accounted for over 95% of stablecoin trading share.
Despite these competitive adjustments, the overall net outflow trend has persisted.
Fee reductions appear to have redistributed domestic volume rather than curbed capital moving offshore.
Upbit continues to lead overall crypto trading activity in Korea, holding about 60% of average daily volume in June, while Bithumb accounts for roughly 32%, according to CoinGecko data cited by the Korea Times.
However, stablecoins are increasingly functioning as transfer vehicles instead of remaining within domestic trading ecosystems.
Lawmakers have called for updates to investor protection and supervisory frameworks, raising concerns about retail participation in high-leverage offshore products.
Discussions have included potential won-pegged stablecoins, security token frameworks, and institutional custody measures, though no legislative timeline has been announced.
Officials have indicated that addressing derivatives, DeFi, and staking access may require coordinated regulatory revisions.
Until domestic product offerings expand or regulatory adjustments occur, the incentive to move stablecoins abroad is likely to remain.
