South Korea Loses $10.8B in Stablecoins as Traders Flee to Offshore Platforms

Woofun AI reports that a massive capital flight of stablecoins has emerged from South Korea’s domestic cryptocurrency sector, with People Power Party lawmaker Lee Jong-wook’s office releasing data that attributes this exodus to systemic pressures on local platforms. The outflows originated from key won-market exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax, as tracked by Digital Asset.

The aggregate volume of this capital migration reached 14.9 trillion won, equivalent to $10.8 billion, spanning an 18-month period from January 2025 to June 2026. These net withdrawal figures, calculated by subtracting deposits from overseas exchanges against withdrawals sent to them, represent the definitive volume of digital assets exiting the country’s financial perimeter.

Upbit dominated the outflow landscape, accounting for 9.0914 trillion won, or $6.6 billion, in net stablecoin transfers. Bithumb followed as the second-largest contributor to this trend, with net outflows totaling 2.6502 trillion won, which translates to $1.9 billion.

Smaller platforms also contributed significantly to the aggregate loss, with Coinone recording 2.5662 trillion won ($1.9 billion) in net withdrawals. Korbit saw 604.2 billion won ($437.4 million) leave its ecosystem, while Gopax experienced the smallest but notable outflow of 12.5 billion won ($9.1 million).

Peak activity occurred in February 2025, when net outflows surged to 1.2049 trillion won ($872.7 million), coinciding with heightened volatility in global cryptocurrency markets and intensified regulatory scrutiny in South Korea.

Woofun AI data shows that traders increasingly favor international platforms for their broader trading pairs, less stringent regulatory oversight, and superior liquidity, market depth, yields, fees, and investment opportunities.

This $10.8 billion exodus over 18 months underscores a critical challenge for South Korean authorities refining their approach to stablecoin issuance and custody. As lawmakers debate stricter rules to protect investors and support the domestic industry, the persistent shift toward offshore activity suggests that current regulatory planning may fail to retain capital in a competitive global crypto landscape.