Overseas Crypto Holdings Declared to Korean Tax Agency Amount to $98B

KuCoin Report Points to Marked Increase in Crypto Investors in TurkeyAs part of its “Into The Cryptoverse: Understanding Crypto Users” series, Seychelles-based crypto exchange KuCoin published a report on Thursday that identifies a significant increase in the number of crypto investors in Turkey over the course of the past eighteen months.Photo by Dima Rogachevskiy on UnsplashCrypto adoption surgeThe report, the fifteenth such report produced by KuCoin as part of this series, reveals that there has been a substantial surge in crypto adoption among Turkish adults, with an impressive 52% of the adult population participating in crypto investments.Since November 2021 there has been a 12% increase in the number of crypto investors aged 18 to 60. These statistics underscore the growing interest and acceptance of cryptocurrencies in Turkey. It’s not likely to be a coincidence that this surge in adoption has come about against the backdrop of the local currency, the Turkish lira, losing more than 50% of its value against the US dollar.Here are some of the key insights that the report identified:Growing Crypto Adoption Among Turkish Adults: The survey indicates a significant upswing in the number of Turkish adults investing in cryptocurrencies. The percentage of adults embracing crypto has surged from 40% to 52% over the last year and a half, despite the overall crypto market finding itself in the doldrums within that time frame.Increased Female Participation: While male investors continue to dominate at a rate of 57%, the survey points to a notable trend of increasing participation among women, particularly in the younger age brackets. Approximately 47% of female crypto investors are between the ages of 18 and 30.Youth-Driven Growth: Younger generations are leading the crypto adoption charge, with investors aged 31 to 44 constituting the largest group at 48%. Furthermore, a significant proportion of investors under 30 joined the market within the past year, indicating the influence of youth within the crypto space.Many have expressed the view that crypto adoption will come about through the younger demographic. It’s a factor that has not gone unnoticed by crypto platforms, including fellow Seychelles-based exchange Bitget.Motivations for Crypto Investments: The report delves into the motivations behind crypto investments among Turkish adults. A substantial 58% express the desire to create long-term wealth, transcending generational boundaries. This suggests a widespread belief in crypto’s potential as a tool for financial freedom.Popular Cryptocurrencies: Bitcoin remains a favored choice, capturing 71% of overall investor interest. Ethereum follows closely with 45% interest, while stablecoins garnered the attention of 33% of surveyed participants.Crypto Trading Dominates: A significant 70% of Turkish participants use crypto for trading, indicating the prevalent use of cryptocurrencies as investment instruments. Meanwhile, 22% have ventured into buying NFTs.Influence of Personal Connections: Personal relationships play a pivotal role in driving crypto adoption in Turkey. About 57% of participants learned about crypto through family and friends, highlighting the significance of these connections in introducing newcomers to the crypto world.This finding resonates with a similar finding relative to a recently published report covering crypto adoption in Vietnam.The report has been based upon online surveys carried out by KuCoin between May 5 and May 12 of this year.

The South Korean government and the ruling party may postpone agreement on a unified proposal for the Digital Asset Basic Act, legislation that would include regulations on stablecoins. The bill represents the second phase of the country’s cryptocurrency regulatory framework, following the first phase that took effect in 2024 to strengthen investor protection.Photo by KS KYUNG on UnsplashAccording to Edaily, the two sides had planned a policy consultation on March 5 to finalize the draft. The meeting was later pushed back to this week but is now unlikely to take place, potentially delaying the government’s plan to complete stablecoin legislation by this month. The Digital Asset Basic Act is a comprehensive bill to regulate the crypto market, including issuance, distribution, disclosure, and listing of virtual assets. South Korea has more than 13 million crypto investors, and market participants see the legislation as a step toward reducing regulatory uncertainty. Meanwhile, the rapid rise of dollar-denominated stablecoins such as USDT and USDC has raised concerns that a slow regulatory response could undermine the country’s monetary sovereignty. Toss eyes dual role in KRW stablecoinsAmid ongoing debate over stablecoin regulation, Viva Republica, the operator of the payments app Toss, is preparing to move into the issuance and distribution of won-denominated stablecoins. At the 2026 Blockchain Meetup Conference last week, Seo Chang-whoon, corporate development director at Viva Republica, said Toss hopes to take on both roles in the stablecoin ecosystem, according to ZDNet Korea. “Toss would like to try serving both as a stablecoin issuer and as a distribution platform,” Seo said. The company is considering joining a consortium to issue a won-based stablecoin, which could include Toss, its financial affiliates, and traditional banks. Toss also plans to expand the token’s use through a dApp store, and indicated it may work with blockchain firms as it develops the business. Global firms are also studying the market potential for Korean won-backed stablecoins. DWF Ventures said in a report last week titled “South Korea’s KRW Stablecoin Opportunity” that a won-denominated stablecoin could offer meaningful benefits to domestic markets. The report argued that such a token could help reduce reliance on the U.S. dollar and curb capital outflows, while improving capital efficiency by allowing reserves to generate yield. With about 98% of South Koreans using digital payments, adoption could come quickly, the report said, adding that the system could also strengthen authorities’ ability to monitor and curb illegal activity. Survey finds modest optimism around BitcoinAmid growing expectations around stablecoin policy, a recent survey of South Korean crypto investors showed cautious optimism about Bitcoin’s price outlook this week. According to a weekly poll conducted last week by CoinNess and Cratos, 27.3% of respondents said they expect Bitcoin to rise or surge this week, up from 24% a week earlier. 32.2% predicted the price would move sideways, up from 28.1% the previous week, while 30.5% expected a decline or sharp drop, down from 47.9% a week earlier. When asked about market sentiment, 37% of respondents said they felt fear or extreme fear, while 32.2% described sentiment as neutral, and 30.8% said they were optimistic or extremely optimistic. Asked why they invest in cryptocurrencies, 33.9% of respondents said they see crypto as the only path to upward mobility. Another 32.5% cited confidence in the long-term value of Bitcoin and blockchain technology, while 25.5% pointed to its role as a hedge against instability in traditional finance. The remaining 8.1% cited volatility and 24/7 trading. According to CoinMarketCap data, Bitcoin was trading at $72,634.39 at the time of writing, up 9.34% over the past week. 

Energy Theft Results in Crypto Mining Operation Shutdown in BorneoAuthorities in Miri, a city on the island of Borneo in Malaysia, swiftly responded to a tip-off from the public, leading to the successful shutdown of an illegal cryptocurrency mining operation.According to local news source, The Borneo Post, during a well-executed raid, 34 mining servers were confiscated, all of which were illicitly drawing power through cable tapping.Photo by Muhammad Faiz Zulkeflee on UnsplashEnergy thieves turn to miningWhile Borneo offers some of the lowest energy prices in Malaysia, it continues to struggle with the problem of energy theft. That issue has been highlighted via a recent utility announcement. Sarawak Energy, the local energy provider, estimated that the criminal operation caused losses of approximately 6,000 Malaysian ringgits ($1,300) worth of stolen electricity each month.The rise of the Bitcoin mining industry in 2023 has brought about record-high network hash rates and network difficulty. While the growth of miners generally signifies the robustness of the Bitcoin network, smaller operators without the economies of scale enjoyed by larger corporations face challenges.One such challenge is energy generation to power their mining servers. In pursuit of higher profit potential with lower electricity rates, illegal mining operators are drawn to stealing electricity from the grid. By eliminating energy expenses, these illicit miners can accumulate profits and offset equipment costs.Fourth recent instanceThe recent incident marks the fourth major operation in Senadin, where Miri is located, where authorities have cracked down on power theft cases related to cryptocurrency mining in 2023. So far, over 137 Bitcoin mining servers have been seized during these operations.On the other side of the spectrum, legitimate crypto mining companies are actively securing funding to support their mining projects. Riot Platforms, for instance, invested a substantial $162.9 million to acquire 33,280 state-of-the-art equipment from MicroBT, a leading producer of mining machinery.In another example, Coinbase extended a $50 million credit line to Canadian cryptocurrency firm Hut 8 Mining, facilitating its operations. Furthermore, Volcano Energy, a public-private partnership in El Salvador, secured an initial funding of $250 million for its ambitious Bitcoin mining venture.Appropriate mining activityThe spate of recent instances of illegal mining in Borneo acts as a reminder of the importance of regulatory compliance and adherence to the law within the cryptocurrency industry. While the allure of lucrative profits may tempt some to engage in illegal activities, the consequences can be severe. Mining can be a positive societal force when applied within appropriate circumstances.A move by the President of Kyrgyzstan last week to harness crypto mining in order to utilize energy that is otherwise being wasted at the central Asian country’s Kambar-Ata-2 hydropower plant serves as a recent example of a positive use case for the activity.In Texas in the United States, crypto miners are collaborating with those that manage the local energy grid, turning off miners at times when the state is on the brink of suffering blackouts.As the crypto mining landscape continues to evolve, it is essential for both authorities and legitimate operators to work together in finding sustainable solutions that ensure the industry’s growth while maintaining the integrity of the energy infrastructure.