South Korea's Stablecoin Outflows Persist Amid Regulatory Gaps

South Korea's five largest won-based exchanges have been experiencing a consistent trend of net stablecoin outflows, with data from the Financial Supervisory Service (FSS) showing that in June 2026, $367 million worth of stablecoins were sent to overseas venues.

This marks an 18-month streak of net outflows, with a total of $10.4 billion leaving the domestic market during this period.

The trend is not due to market panic but rather due to the regulatory environment in South Korea, which restricts access to certain products such as high-leverage derivatives and DeFi pools on domestic exchanges.

Offshore platforms like Binance and Bybit are attracting investors with contracts tied to major Korean equities, further pulling capital out of the local market.