South Korea’s five largest cryptocurrency exchanges recorded a net stablecoin outflow of approximately $367 million in June 2026, marking the continuation of an 18-month trend linked to limited availability of advanced crypto products in the domestic market.
Data from the Financial Supervisory Service (FSS) shows that Upbit, Bithumb, Coinone, Korbit, and Gopax collectively transferred 2.76 trillion won worth of stablecoins to overseas platforms during June, while receiving 2.20 trillion won back. The difference resulted in a net outflow of 560.3 billion won, equivalent to about $367 million.
The June figures extended a monthly streak of stablecoin outflows that began in January 2025, reaching 18 consecutive months. Rather than reflecting a simple withdrawal of capital from crypto markets, the trend highlights a broader gap between domestic offerings and the wider range of products available internationally.
South Korean investors appear to be moving stablecoins abroad primarily to access services and investment opportunities that remain unavailable through locally regulated platforms, rather than reacting to market uncertainty.
The latest data arrives as the total cryptocurrency market capitalization sits near $2.22 trillion, down 1.1% over the previous 24 hours. Global crypto trading volume stands at roughly $16.9 billion per day.
Regulatory Restrictions Fuel Offshore Stablecoin Movement
South Korea’s major exchanges operate under the Specific Financial Information Act, which imposes strict compliance requirements and limits access to several parts of the digital asset ecosystem, including leveraged derivatives, DeFi applications, liquid staking products, and many real-world asset (RWA) platforms.
According to a Korea Times report published on Aug. 2, June’s stablecoin outflows represented 77.6% of Korean investors’ net purchases of overseas stocks.
In the second quarter of 2026, stablecoin outflows reached around 1.69 trillion won, exceeding the 1.62 trillion won recorded in net purchases of foreign equities. This indicates that stablecoins have increasingly become a route for retail investors seeking broader exposure to global markets.
FSS data suggests that several popular crypto products remain inaccessible on Korean-regulated exchanges. International platforms such as Binance and Bybit have attracted local traders by offering products connected to major Korean companies and global assets, increasing demand for offshore trading options.
Competition among domestic exchanges has also shifted within the stablecoin sector. Coinone recorded the highest average daily stablecoin trading volume in June at 84.58 billion won, securing a 34.8% market share after introducing zero-fee USDC trading in October 2025.
Bithumb followed with 75.57 billion won in average daily volume and a 31.1% share, while Upbit recorded 73.03 billion won and a 30.1% share, based on FSS figures cited by Korea Times.
The market structure has changed significantly since January 2025, when Upbit dominated with a 53.5% share, Bithumb held 42.5%, and Coinone accounted for only 1.8%.
However, the redistribution of stablecoin trading activity among domestic exchanges has not slowed the broader offshore outflow trend. Coinone’s zero-fee promotion appears to have shifted trading volume between local platforms rather than encouraging more capital to remain within South Korea.
Upbit continues to lead the broader crypto market by trading activity, with CoinGecko data cited by Korea Times showing the exchange handled around 60% of average daily crypto volume in June, while Bithumb accounted for 32%.
Despite its trading dominance, the stablecoin market increasingly functions as a pathway for transferring capital overseas rather than simply serving as a local trading category.
Calls Grow for Regulatory Changes
South Korean officials are increasingly debating how to update crypto regulations as offshore activity continues to rise. Rep. Lee, according to Korea Times, called on the government to improve investor protections and strengthen oversight frameworks.
Lawmakers have expressed concerns that domestic investors are turning to overseas platforms for highly leveraged products that are not available under South Korea’s regulatory system. They have also highlighted the challenges created by stablecoin flows moving beyond traditional supervision.
Policy discussions have included the creation of won-based stablecoins, security token offering frameworks, and institutional custody rules, although no firm legislative schedule has been established.
The ongoing issue appears to stem from differences in product availability rather than restrictions on capital movement. Addressing the gap may require regulatory updates covering derivatives, DeFi, staking, and other emerging crypto sectors.
Until South Korean exchanges can offer a wider range of services comparable to global platforms and decentralized protocols, stablecoins are likely to continue moving offshore. The June data suggests this pattern has become a long-term structural trend rather than a temporary market reaction.
