Stablecoins Net Outflow for 18 Consecutive Months…Approximately 14 Trillion Won

"Stablecoins Net Outflow for 18 Consecutive Months…Approximately 14 Trillion Won"

"Korean Won Transactions Second Only to Dollar in Virtual Asset Trading…Sufficient Liquidity to Back Won Coins"

Redstone and Kaia Publish 'The Seoul Standard' Report

An analysis has revealed that stablecoins have seen a net outflow from Korea to overseas for 18 consecutive months, reaching a scale of 10.4 billion dollars (approximately 14 trillion won).

According to the virtual asset industry on the 30th, oracle company Redstone and blockchain platform Kaia published a report titled 'The Seoul Standard' containing these details the previous day.

According to the report, stablecoins have experienced a net outflow from Korean Won virtual asset exchanges to overseas for 18 consecutive months.

The explanation states that the net outflow of stablecoins has continued since the Financial Services Commission began compiling related statistics in January of last year.

The report assesses that Korean Won transactions are the second most frequent in global virtual asset trading, after dollar transactions, and that Korea possesses sufficient liquidity to back Korean Won stablecoins.

It also pointed out that while Korea has not introduced Korean Won stablecoins, dollar stablecoins are filling the regulatory gap, and investors are using dollar stablecoins as an alternative.

The report noted that Korea has historically taken a strict stance on virtual assets, including restricting institutional participation in the market, but the atmosphere began to change this year.

Next year, a law for the institutionalization of Security Token Offerings (STO) will be implemented in Korea, but phase 2 virtual asset legislation and the legalization of Korean Won stablecoins were mentioned as unresolved issues.

It was also highlighted that issuer regulations would define the Korean Won stablecoin market in Korea. It analyzed that the Bank of Korea supports a bank-led issuance method, while the Financial Services Commission and the ruling party favor broader corporate participation.