Officials report that stablecoin made up almost half of South Korea’s cryptocurrency outflows in the first quarter.
In South Korea, dollar-denominated stablecoins accounted for nearly half of all digital assets transferred overseas from local crypto exchanges during the first quarter of 2025. Crypto users in the country primarily used platforms such as Upbit, Bithumb, Coinone, Cobbit, and Gopax to move these stablecoins abroad.
According to Democratic Party lawmaker Min Byung-duk, citing data from the Korean Financial Supervisory Service, the five exchanges mentioned facilitated digital asset transfers totaling 56.81 trillion won in Q1.
Of that amount, 26.87 trillion won was linked to stablecoin transactions, making up 47.3% of all digital assets sent abroad. The most commonly transferred stablecoins during this period were USDT and USDC.
Despite notable outflows of digital assets, South Korea recorded a net inflow in the first quarter of 2025. According to official data, cryptocurrencies valued at 64.78 trillion won entered the economy during this period, with stablecoins comprising 26.9 trillion won of that total.
South Koreans tend to favor stablecoins as they serve as essential tools for purchasing tokens on foreign cryptocurrency exchanges. In March 2025, the total value of stablecoin outflows saw a sharp decline, a trend largely attributed to reduced demand for foreign exchange usage. Analysts also point to a broader slowdown in South Korea’s digital asset market during this period.
According to data from the crypto analytics platform CryptoQuant, stablecoin transactions in South Korea amounted to 26.62 trillion won in January and 22.92 trillion won in February 2025. However, this figure dropped significantly in March, falling to 11.63 trillion won.
South Korea’s Stance on Crypto Exchanges
Recently, the financial authorities in the country have sanctioned some crypto exchanges for operating illegally. Exchanges such as KuCoin, CoinW, Bitunix, and KCEX were reported to be operating in South Korea without registering as Virtual Asset Service Providers (VASPs) under the Specific Financial Information Act.
This move highlights South Korea’s increasing efforts to regulate the crypto industry and ensure that exchanges comply with local laws to protect investors and maintain financial stability.
In addition, the Bank of Korea has signaled its intention to be actively involved in shaping the country’s stablecoin regulations. The central bank expressed concerns that if stablecoins are widely used as a payment method, they could potentially disrupt South Korea’s monetary policies.
As part of this effort, South Korea is preparing to introduce a new crypto law in 2025, which will include stricter regulations on stablecoins to mitigate these risks and ensure financial stability.
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