South Korea Sees $40.6B in Crypto Outflows as Stablecoins Lead the Way
- South Korea saw $40.6 billion in crypto outflows in Q1, with stablecoins making up 47.3% of the total.
- Stablecoins like Tether and USD Coin led South Koreas $40.6B crypto outflows to international exchanges.
- Despite the rising adoption, March saw a slight dip in stablecoin outflows as global crypto markets cooled.
South Korea suffered substantial cryptocurrency outflows in Q1, with approximately 57 trillion won (almost $40.6 billion) leaving the country. Almost half of these outflows, or a sizable fraction of them, comprised stablecoins, which indicated a further trend of users that were shifting their funds to offshore crypto exchanges. According to the data provided by Democratic Party member and lawmaker Min Byung-duk, the Financial Supervisory Service said stablecoins such as Tether (USDT) and USD Coin (USDC) accounted for 47.3% of the total outflow.
South Koreas Crypto Outflows in Q1
During the period of January to March, 56.8 trillion won of cryptocurrencies were moved from South Koreas five big digital asset exchanges (Upbit, Bithumb, Coinone, Cobbit, Gopax) to the global markets. Of the total, 26.87 trillion won of this money was in the stablecoins, which is a testament to the increasing role such an asset plays in worldwide cryptocurrency trades.
Stablecoins are frequently utilized on international platforms such as Binance and Bybit for trading as well as buying digital assets. This makes stablecoins an ideal option to conduct international transfers.
While the report indicated a trend toward stablecoin transfers, a minor decline of the process was recorded in March. With the global market going cold and trading volume on foreign exchanges plummeting, the outflows were reduced. This change emphasizes the influence that broader market conditions exert on the way users act, with traders adapting to market volatility more and more.
Rising Crypto Adoption in South Korea
South Korea is still experiencing enhanced adoption of the digital assets. In February 2024, there were 16.29 million South Koreans with digital assets accounts (around 32% of the entire population in the country). Parallels are drawn to a rising level of mainstream engagement with digital assets, while both retail and institutional investors are interested. The figures are reflective of the user accounts from South Koreas leading exchanges and reflect uniform growth in the sector.
The popularity of digital adoption is not confined to being practiced by private individuals; digital assets are also being made increasingly involved by public officials. Only 411 out of 2,047 public officials who filed asset declarations that year claimed that they held cryptocurrency-related assets. These officials enjoy high posts such as: the secretary general of the Labor-Management Development Foundation, president of the Korean National Police University, and vice-president of the Korea Water Resources Corporation.
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Read more: https://www.tronweekly.com/south-korea-sees-40-6b-in-crypto-outflows-as/
Text source: TronWeekly
