South Korea’s Financial Services Commission (FSC) has provided critical insights into the impact of stablecoins on capital flows within the country. Following concerns about dollar-denominated stablecoins triggering a massive outflow from South Korea, the FSC conducted analysis of cross-border stablecoin movements between November 2024 and February 2025. The results indicate a balanced flow – for every dollar entering through stablecoins, an equivalent amount exited during the study period. This finding suggests that current regulations are not causing a one-sided capital outflow from South Korea.
This report marks a significant step forward in stablecoin regulation by providing transparency and data-driven insights into this evolving market. The FSC’s findings offer valuable reassurance to investors and businesses, highlighting the importance of clear regulation for stablecoins while also acknowledging their potential for fostering innovation within the crypto space.