TLDR
- South Korea’s stablecoin trading volume shrank 80% from December 2024 to June 2025.
- The decline is partly due to South Korea’s ban on crypto derivatives trading.
- Credit card payments dominate South Korea’s market, limiting stablecoin use.
- Overall crypto trading volume in South Korea fell 80% from December 2024 to June 2025.
South Korea, a country known for its active retail cryptocurrency market, has seen a sharp decline in stablecoin trading. Over the last six months, the country’s daily stablecoin trading volume has plummeted by 80%. From a high of ₩1 trillion ($730 million) in December 2024, the volume fell to ₩200 billion ($146 million) by June 2025. This dramatic decrease has raised concerns among investors and analysts alike.
The Decline in Stablecoin Trading Volume
South Korea’s stablecoin market experienced a surge in trading volumes throughout 2024, reaching an all-time high of ₩1 trillion in December. However, the market has witnessed a steady decline this year. By June 2025, daily trading volume dropped to ₩238 billion, a significant fall from ₩304 billion in October 2024. This decline in volume is attributed to a range of factors, including regulatory concerns and a downturn in the broader cryptocurrency market.
The data, submitted by lawmaker Park Sung-hoon to the National Assembly, reveals the sharp contrast between 2024’s growth and the sluggish performance in 2025. Trading volumes remained relatively stable between ₩879 billion and ₩923 billion in the first few months of 2025 before falling below ₩200 billion in June.
Regulatory Restrictions and the Market Environment
One of the key reasons behind the decline in stablecoin trading volume in South Korea is the country’s strict regulatory environment. Unlike global markets where stablecoins are commonly used in derivatives trading, South Korea has banned crypto derivatives trading, limiting the use of stablecoins to mostly retail and speculative purposes.
As a result, South Korea has not seen the same adoption rates for stablecoins as other markets. Internationally, stablecoins like USDT, USDC, and DAI have become widely used in derivative contracts and real-world transactions.
However, in South Korea, the majority of transactions still rely on credit cards, which dominate nearly 70% of the payment methods in the country. This has made stablecoin-based payments a small part of the overall economy, thus contributing to the fall in trading volume.
Broader Cryptocurrency Market Decline
The slowdown in stablecoin trading is part of a larger trend observed across South Korea’s cryptocurrency market. According to the Financial Stability Report from the Bank of Korea, the country’s overall crypto trading volume has decreased drastically. Daily trading volumes fell from ₩17.1 trillion in December 2024 to just ₩3.2 trillion in June 2025. This represents an 80% drop over a six-month period.
Alongside the decline in trading volumes, South Korea’s domestic crypto holdings have also fallen. At the end of January 2025, domestic crypto holdings stood at ₩121.8 trillion, but by June, they had dropped to ₩89.2 trillion. The Bank of Korea attributed this decline to the overall slowdown in the virtual asset market, as well as a reduced sense of optimism about cryptocurrency, following initial hopes for supportive regulatory changes in early 2025.
The End of the “Trump Effect”
At the beginning of the year, there was a sense of optimism in South Korea’s crypto market, driven by the expectation that pro-crypto policies would be introduced in the U.S. under President Trump.
This so-called “Trump effect” led to a brief surge in crypto investments. However, as regulatory clarity has remained uncertain, the effect has faded, leading to reduced trading activity and a decline in market sentiment.
The fall in stablecoin trading volume and broader cryptocurrency market activity reflects the general cautious approach of South Korean investors. It also highlights the challenges that crypto markets face when regulatory clarity is lacking and global market conditions become less favorable. As of mid-2025, stablecoin trading volume in South Korea remains at a fraction of its previous levels, signaling a continued contraction in local crypto market activity.
