Legal Process Continues Following Crypto.com Transfer Mishap

Busan Introduces Blockchain-Powered Cards for Multi-Children Families to Offer Social BenefitsBusan Metropolitan City, home to South Korea’s largest port, announced on October 20 (local time) a revision in its criteria for “multi-children families” who enjoy social welfare benefits and the launch of new blockchain-powered cards for these families. The city will reduce the requisite number of children in these families from three to two to extend benefits and encourage a higher fertility rate. To qualify for these benefits, at least one child in the family must be under the age of 19.Photo by Minku Kang on UnsplashBlockchain integrationStarting October 31, eligible families can access these benefits through “family love cards,” which will be available on BPASS, a mobile identification card app developed with blockchain technology. Some of these family love cards will be issued in collaboration with credit card company Shinhan Card.Diverse benefitsThe benefits include discounts at public facilities, restaurants, cram schools (commonly referred to as hagwons), and daycare centers. Specifically, public parking lots and sports facilities will offer services at half the usual rate. Meanwhile, other establishments targeting adolescents and women will either waive their fees entirely or provide reductions.On November 1, Busan will host the 16th annual Multi-Children Family Day ceremony at the City Hall’s international conference center. Having started this event in 2008, Busan stands out as the only metropolitan municipality to celebrate this occasion each year.Efforts to boost fertility rateThis year’s ceremony will highlight Busan’s initiatives to enhance support for multi-child families. The event will honor outstanding families and a childbirth-friendly organization, as well as districts and counties that have been exceptional in implementing childbirth promotion policies. Additionally, the occasion will be marked by special commemorative performances.Busan Mayor Park Heong-joon affirmed the city’s dedication to nurturing children alongside their families. He added that Busan will persistently refine and improve its childbirth policies to offer full support.

Swing Launches Blockchain-Based Service to Offer Financial Incentives for Scooter RidersSwing, a South Korean personal mobility startup, announced today the launch of “Swing by Boats,” a blockchain-based asset tracking system, in collaboration with blockchain company Block Odyssey. Developed by Block Odyssey, Boats completed a proof-of-concept (PoC) test with a commercial bank to validate the feasibility of the technology.Photo by Sergey Lapunin on UnsplashFinancial incentives for scooter investmentsSubscribers of Boats now have the option to invest in electric scooters operated by Swing. For those who choose to purchase these scooters, Swing offers a financial incentive: an average return rate of 7.5% on the purchase price, paid out over a period of 30 months. In addition, buyers will receive a complimentary one-hour ride on Swing mobility devices. Each scooter available for purchase through Boats is priced at KRW 750,000 (approximately $564). At the end of the 30-month period, Swing commits to buying back the scooter from the purchaser.Simulation program to earn pointsBoats subscribers now have access to a scooter simulation program known as Swing Miles. Within this program, subscribers can assign one of the scooters operating on the Swing platform as their own. They can then monitor various performance metrics such as mileage, routes taken, and payment rates for their designated scooter. Whenever other riders use that specific scooter, the subscriber earns 10% of the payment made by those riders, awarded as Swing Points. These points can be redeemed like cash for services or devices within the Swing app. Before launching Boats, the company conducted a two-month beta test to enhance the service’s quality and accuracy.Jung Sung-ha, an official at Swing, explained that although the newly launched program does offer an average return rate for users, it is primarily aimed at scooter riders rather than professional investors. Jung noted that riders can directly invest in scooters and enjoy the service as if it were a game. According to Jun, the company plans to use the point system as a way to boost customer engagement.

KCS Says Illegal Forex Transactions for Crypto Purchases Amount to $7.7BOver the past five years, the total value of illegal foreign exchange transactions associated with virtual asset purchases has amounted to approximately KRW 10.4 trillion ($7.7 billion), according to the Korea Customs Service’s report received on Thursday by Go Yong-jin, a member of the Democratic Party of Korea on the National Assembly’s Strategy and Finance Committee.Photo by Sasun Bughdaryan on Unsplash“Illegal transactions on foreign exchanges for the purchase of virtual assets are occurring due to the higher prices of virtual assets in Korea compared to prices abroad,” Go explained.Crimes incited by crypto waveThe data showed that the number of violations subject to fines was 6,066, involving forex transactions of KRW 2.3 trillion. In particular, violations made in 2020 and 2022 accounted for the majority, making up 78.7% with 4,775 cases and a value of KRW 1.9 trillion, or 83.7% of the cumulative total. This indicates a substantial increase in illegal activities during the periods when the crypto investment frenzy in Korea was at its peak.Uncovering key patternsWhile foreign exchange transactions were primarily intended for acquiring virtual assets, they were often disguised as trade payments. There were also cases where individuals withdrew foreign currency from overseas ATMs to buy cryptocurrencies. These two scenarios were the most prevalent cases for which fines were imposed. More specifically, among the 6,066 violations, there were 4,518 instances of the former and 1,486 cases of the latter. The transferred funds amounted to KRW 1.9 trillion and KRW 407 billion, respectively.During the five-year period, individuals involved in 93 cases of these forex activities — collectively valued at KRW 8.1 trillion — were penalized following the referral of their cases to prosecutors. In particular, the violations in 2022 accounted for 70.3% (KRW 5.7 trillion). This could be accredited to the breakout of suspicious large-scale forex transactions last year, which prompted local authorities such as the Korea Customs Service and the Financial Supervisory Service (FSS) to initiate planned investigations.The most common type of illegal foreign exchange transaction cases referred to prosecutors was similar to those that incurred fines: overseas remittances disguised as trade payments, constituting 49.9% (KRW 4 trillion) of all cases. Transferring foreign currency via unregistered entities was the second most common violation, making up 47.2% (KRW 3.8 trillion). These transfers breach the Foreign Exchange Transactions Act and are always reported to prosecutors.Go thereby called on authorities to intensify crackdowns on illegal forex transactions aimed at trading virtual assets and to revise foreign exchange regulations accordingly.