South Korea Tightens Crypto Rules Amid Persistent Capital Outflows

South Korea is tightening its grip on cryptocurrency rules as capital continues to flow out of domestic exchanges. The country's regulators are restricting access to offshore platforms, strengthening transfer checks, and reviewing exchange banking arrangements.

The new measures aim to curb the persistent outflow of crypto assets from South Korean exchanges. According to data, five major exchanges recorded $367 million in stablecoin outflows in June, while gross outbound transfers reached 2.76 trillion won during the month. Cumulative net outflows have reached about 14.9 trillion won since January.

The restrictions include Google Play Store actions against unregistered derivatives platforms, with at least 29 apps affected. However, users can still access some offshore platforms through web interfaces or iOS listings. Registered domestic exchanges face fewer distribution barriers, which could strengthen their position in the market.

Exchanges will also be required to seek users' names, transfer purposes, and information explaining where transferred funds originated for transfers above 10 million won (approximately $7,000). Enhanced monitoring will be applied to such transactions.