South Korea's Stablecoin Outflows Continue Amid Regulatory Constraints
In June 2026, South Korean crypto exchanges recorded a net outflow of stablecoins totaling $367 million, extending an 18-month streak. The Financial Supervisory Service (FSS) reported that the five largest won-based platforms—Upbit, Bithumb, Coinone, Korbit, and Gopax—sent more than they received in cross-border stablecoin transfers during the month. This trend is attributed to regulatory restrictions limiting access to high-leverage derivatives, DeFi pools, liquid staking, and RWA protocols on domestic exchanges. The outflows have become a primary channel for retail investors seeking riskier products offshore, with platforms like Binance offering contracts tied to Korean equities. Coinone gained market share in stablecoin trading after introducing zero-fee USDC trades last year, but this shift has not reversed the overall capital flight trend. Upbit still leads in total crypto volume, though its dominance is waning within the stablecoin segment. Lawmakers are calling for regulatory reforms to address investor protection and oversight gaps as offshore platforms attract more retail activity without domestic safeguards.