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South Korea’s cryptocurrency outflows reached nearly 57 trillion won in the first quarter of 2024, with stablecoins making up almost half of the total as users increasingly moved funds to overseas exchanges. This trend highlights the growing role of stablecoins in cross-border cryptocurrency trading.

Key Data on South Korea’s Crypto Outflows

In the first quarter of 2024, approximately 56.8 trillion won (around $40.6 billion) worth of cryptocurrencies were transferred overseas from South Korea’s five major crypto exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax. Of this amount, 47.3% (26.87 trillion won) consisted of stablecoins such as Tether (USDT) and USD Coin (USDC).

These figures were disclosed by Democratic Party lawmaker Min Byung-duk, citing data provided by the Financial Supervisory Service. Stablecoins, which are pegged to fiat currencies like the U.S. dollar, are often used as a medium to buy tokens on overseas exchanges, including Binance and Bybit. However, stablecoin outflows saw a decline in March as the crypto market slowed, reducing the volume of funds sent abroad.

Growing Crypto Adoption in South Korea

Cryptocurrency adoption continues to rise in South Korea, with an estimated 16.29 million crypto accounts recorded in February 2024. This figure represents approximately 32% of the country’s population, showcasing the increasing engagement of retail investors in digital assets.

The data, submitted to Representative Cha Gyu-geun of the Rebuilding Korea Party, was compiled from the same five major exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax. These numbers indicate steady growth in crypto participation, reflecting the sector’s expanding influence in the country.

Public Officials Join the Crypto Space

Interestingly, cryptocurrency investments are not limited to private citizens. Nearly one in five public officials who filed asset declarations in 2024 reported holding crypto-related assets. Out of 2,047 officials who submitted declarations, 411 disclosed ownership of cryptocurrencies.

Several of these officials hold key positions in South Korea, including roles such as the Secretary General of the Labor-Management Development Foundation, the President of the Korean National Police University, and the Vice President of the Korea Water Resources Corporation. This trend underscores the broadening appeal of digital assets across different sectors of society.

Why Are Stablecoins So Popular?

Stablecoins have gained significant traction due to their utility in cryptocurrency trading. As they are pegged to stable fiat currencies, they offer lower volatility compared to other cryptocurrencies like Bitcoin or Ethereum. This makes them an ideal choice for transferring funds across borders or purchasing tokens on international exchanges.

For South Korean investors, stablecoins play a crucial role in accessing the global crypto market, particularly through platforms that are not based in the country. However, fluctuations in the market and regulatory developments could influence the volume of stablecoin transactions in the future.

Tips for New Crypto Investors

  • Understand the Basics: Before investing, familiarize yourself with key concepts like blockchain technology, cryptocurrency wallets, and how exchanges operate.
  • Start Small: Begin with a manageable investment to understand market dynamics and minimize potential losses.
  • Research Exchanges: Choose reputable exchanges with strong security measures and user-friendly interfaces.
  • Monitor Regulations: Stay updated on local and international cryptocurrency regulations to ensure compliance.
  • Diversify: Avoid putting all your funds into a single cryptocurrency; instead, diversify to reduce risk.

As the global cryptocurrency market continues to evolve, South Korea remains a key player, with increasing adoption rates and significant cross-border transaction volumes. Whether you’re a beginner or an experienced investor, understanding the trends and dynamics in this market can help you make informed decisions.

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