USDT Leads Stablecoin Dominance in South Korea’s Q1 Crypto Outflows
In the first quarter of 2025, stablecoins, particularly USDT and USDC, accounted for nearly half of South Korea’s cryptocurrency outflows, highlighting their pivotal role in cross-border transactions. This trend reflects the growing reliance on dollar-pegged assets in the crypto market.
Stablecoins Dominate South Korea’s Crypto Outflows in Q1
Nearly half of South Korea’s cryptocurrency outflows in the first quarter were dollar-pegged stablecoins, according to data from the Financial Supervisory Service. Lawmaker Min Byung-duk revealed that 47.3% of the 56.8 trillion won ($40.6 billion) transferred overseas from major exchanges like Upbit, Bithumb, and Coinone consisted of tokens like Tether (USDT) and USD Coin (USDC).
The trend underscores stablecoins’ role as primary vehicles for cross-border capital movement in crypto markets. With users funneling funds to offshore platforms, regulators may face mounting pressure to address potential arbitrage and compliance risks.
Senate Blocks Stablecoin Bill Advancement Amid Democratic Opposition
The U.S. Senate failed to advance stablecoin legislation in a pivotal procedural vote, dealing a setback to the crypto industry’s push for regulatory clarity. Democrats rallied against the bill despite its earlier bipartisan committee approval, leaving the future of stablecoin oversight in limbo.
Market participants had viewed the bill as a critical step toward legitimizing dollar-pegged tokens like USDC and USDT. Its stalling injects fresh uncertainty into an industry already grappling with regulatory ambiguity. The 48-49 vote fell short of the 60 required to proceed, revealing deeper political fractures around crypto policy.
This legislative roadblock comes as stablecoins cement their role as crypto’s gateway to traditional finance. The impasse may delay institutional adoption while reinforcing the narrative of U.S. regulatory stagnation - a contrast to jurisdictions like Europe advancing comprehensive frameworks.
South Korea Records $40.6B Crypto Outflows in Q1 as Stablecoins Dominate
South Korea experienced significant cryptocurrency outflows in the first quarter, with $40.6 billion leaving the country. Stablecoins accounted for nearly half of these outflows, highlighting a shift of funds to offshore exchanges.
Tether (USDT) and USD Coin led the movement, reflecting broader market trends as investors sought stability amid cooling global crypto markets. The data, sourced from lawmaker Min Byung-duk and the Financial Supervisory Service, underscores the growing role of stablecoins in cross-border capital flows.
