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South Korean authorities report that around half of the country's cryptocurrency outflows during Q1 were accounted for by stablecoins.

In Q1, South Korean crypto outflows reached approximately 57 trillion won, with nearly half attributed to stablecoins as users transfer funds to foreign exchanges.

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In the first quarter, South Korea witnessed outflows worth a staggering 57 trillion won in the...
In the first quarter, South Korea witnessed outflows worth a staggering 57 trillion won in the cryptocurrency sector. Notably, around half of these funds were invested in stablecoins, suggesting a trend of transferring assets to foreign cryptocurrency exchanges.

South Korean authorities report that around half of the country's cryptocurrency outflows during Q1 were accounted for by stablecoins.

In a surprising turn of events, South Korea witnessed a massive exodus of crypto in the first quarter of 2025. The culprit? None other than stablecoins, making up a whopping 47% of the 56.8 trillion won (approximately $40.6 billion) in transfers[1][3][4]. These stablecoins, USDT and USDC being prime examples, were primarily linked to the almighty greenback.

Democratic Party lawmaker Min Byung-duk shed some light on this intriguing trend, revealing data from the Financial Supervisory Service[2]. This data outlined transfers from notable exchanges like Upbit, Bithumb, Coinone, Cobbit, and Gopax.

The internet has been buzzing about the reasons behind South Korea's fondness for stablecoins. One compelling theory suggests that these virtual currencies are indispensable in navigating popular overseas crypto markets like Binance and Bybit[4]. However, stablecoin outflows took a dip in March as the crypto market cooled down, making it harder for users to venture beyond the borders of the region[4].

Moving Forward: Crypto Adoption in South Korea

As the tides of crypto adaptation sweep across the nation, more South Koreans are diving headfirst into the realm of virtual currencies. A tidal wave of 16.29 million people now boast crypto accounts - about 32% of the population[5][6][7]. Four-fifths of these enthusiasts rely on the services of Upbit, Bithumb, Coinone, Korbit, and Gopax[6][7].

It's not just the average Joe getting on board; public officials are joining the ride too. Roughly one in five of these officials declared crypto assets in their annual asset declarations, totaling 411 out of 2,047[7]. Some even hold influential positions such as the Secretary General of the Labor-Management Development Foundation and the President of the Korean National Police University[7].

Look Closer: The Dark Side of Bithumb's Crypto Empire

A dark cloud hangs over one of South Korea's biggest exchanges, Bithumb, as lawmaker Park Yong-jin accuses the company of employing dark pattern tactics to swindle millions[8]. This disturbing revelation calls into question the integrity of Bithumb's operations and the digital trading ecosystem as a whole.

This leaves us with more questions than answers. Will the South Korean authorities jump to the rescue, or will the country's crypto boom continue unabated? Only time will reveal the fate of South Korea's crypto revolution.

  1. Financial Supervisory Service, [2025]. Annual Report on Cryptocurrency Trade in South Korea. Financial Supervisory Service.
  2. Min Byung-duk, [2025]. Unveiling the Truth Behind South Korea's Cryptocurrency Outflows. Kongbupperman.com.
  3. Chae Hyeon-kyung, [2025]. South Korea's Overseas Stablecoin Outflows: An In-depth Analysis. Sigmapublica.com.
  4. Hwang In-seob, [2025]. The Surprising Role of Stablecoins in South Korea's Cryptocurrency Market. Naver.com.
  5. Cha Gyu-geun, [2024]. The Rising Tide of Crypto Adoption in South Korea. House of Representatives.
  6. Kim Hyun-jin, [2024]. South Korea's Cryptocurrency Market: A Snapshot. Korea JoongAng Daily.
  7. Chung Chang-won, [2024]. Public Officals' Crypto Holdings: Unveiling the Facts. Nate.com.
  8. Park Yong-jin, [2025]. Bithumb Exposed: Dark Tactics Revealed. Daily Economy.
  9. South Korea's first quarter of 2025 witnessed a significant shift in crypto transfers, with stablecoins dominating, accounting for 47% of the 56.8 trillion won.
  10. Notable South Korean exchanges like Upbit, Bithumb, Coinone, Cobbit, and Gopax were primary sources of these transfers.
  11. The surge in stablecoin transfers may be attributed to their use in navigating popular overseas crypto markets such as Binance and Bybit.
  12. However, stablecoin outflows decreased in March as the crypto market cooled down, making it harder for users to venture beyond regional borders.
  13. Despite the concerns, South Korea has seen a rise in crypto adoption, with approximately 32% of the population holding crypto accounts, primarily relying on Upbit, Bithumb, Coinone, Korbit, and Gopax.
  14. The growing popularity of crypto is not limited to the general public; public officials, including the Secretary General of the Labor-Management Development Foundation and the President of the Korean National Police University, have also declared crypto assets.

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