South Korea’s crypto market hits $968.5B in H2 2024 as Bitcoin rally lifts activity

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.

Japan’s Financial Services Agency (FSA) plans to ban insider trading in the cryptocurrency market, according to an Oct. 15 report in Nikkei, cited by CoinPost. The forthcoming rules would amend the Financial Instruments and Exchange Act to explicitly bar trading based on nonpublic information, with violators subject to administrative fines.Photo by Louie Martinez on UnsplashTightening oversight through the SESCThe FSA intends to hammer out the details through a working group by year’s end and aims to submit a bill amending the securities law during the 2026 ordinary session of the Diet. Under the proposal, the Securities and Exchange Surveillance Commission (SESC) would gain authority to investigate suspected violations and could recommend fines or criminal charges in cases of alleged insider trading. Experts say Japan’s system of self-regulation, led by cryptocurrency exchanges and the Japan Virtual and Crypto Assets Exchange Association (JVCEA), lacks sufficient data monitoring. The government hopes that granting the SESC oversight of crypto transactions will help ensure fairer trading and make the market more attractive to investors. The new rules would target the use of confidential information, such as advance knowledge of a token listing or a major security flaw. Yet applying insider-trading standards to crypto may prove difficult. Many tokens have no clear issuer, making it harder to determine whose information could move markets or who should be held accountable. Crypto investing has surged in Japan, with domestic trading accounts quadrupling in five years. The FSA now aims to update its rules to reflect that digital assets are traded mainly as investments, not as payment instruments. Leadership transition brings policy uncertaintyJapan’s plan to strengthen oversight of cryptocurrencies coincides with a period of political transition. Prime Minister Shigeru Ishiba has announced his intention to step down but remains in office for now. According to CNBC, Sanae Takaichi, newly elected president of the ruling Liberal Democratic Party (LDP), would typically be expected to assume the premiership, but the coalition’s collapse has upended what would otherwise be a routine transition. The parliamentary vote to choose Japan’s next leader, initially slated for Oct. 15, has been postponed to Oct. 21. In the wake of the split, the main opposition Constitutional Democratic Party (CDP) is reportedly seeking Komeito’s support for a joint prime ministerial candidate. Yuichiro Tamaki, leader of the Democratic Party for the People (DPP), is seen as a potential consensus choice. The ruling LDP currently holds 196 seats in the lower house, but a united opposition could command a larger bloc. Tamaki has also drawn attention in crypto circles. About a year ago, he proposed cutting taxes on cryptocurrency gains to 20%, a flat rate similar to that on stock profits, during his campaign against Ishiba. At present, crypto gains in Japan are classified as miscellaneous income and taxed at progressive rates that can exceed 50% when local levies are included. Metaplanet’s Bitcoin strategy tested amid market shiftsAgainst that backdrop, Metaplanet, often dubbed Japan’s answer to the U.S. firm Strategy for its aggressive Bitcoin (BTC) accumulation, is under pressure as its valuation slips below the value of its crypto holdings. The company’s market-to-BTC net asset value (mNAV) ratio fell to 0.99 on Oct. 14, dropping below 1 for the first time. The metric compares the company’s market value with its BTC holdings, and a reading below 1 means the stock is trading at a discount to its BTC reserves. The decline comes after Metaplanet paused BTC purchases for the past two weeks. As of Oct. 1, the company held 30,823 BTC on its balance sheet. 

Cheongju City Targets Cryptocurrency to Recoup Unpaid TaxesSouth Korea’s Cheongju City, located 112km south of Seoul, has announced today that it will tackle local tax delinquents, focusing on the confiscation of their virtual assets.Photo by Karolina Grabowska on PexelsTax debtors owing over KRW 1 millionTo address this challenge, Cheongju City has requested records of cryptocurrency holdings for 8,520 individuals, each owing over KRW 1 million ($747) in local taxes, from seven cryptocurrency exchanges, including Upbit and Bithumb. The city’s plan is to seize and then liquidate these cryptocurrencies to recover the pending tax amounts.This move is facilitated by the amended Act on Reporting and Use of Specified Financial Transaction Information. Under this act, virtual asset service providers (VASPs) must uphold obligations such as confirming the identity of their customers and notifying authorities of dubious transactions. Moreover, the city is keenly monitoring the transfer of virtual assets, focusing particularly on those owned by individuals with unresolved tax dues.Legal groundsIn 2018, the South Korean Supreme Court ruled that virtual assets are recognized as intangible yet legitimate assets, which can be subject to confiscation. It is this ruling that empowers Cheongju City to act against tax arrears by seizing cryptocurrencies.Last year, Cheongju City scrutinized the crypto records of 16,000 individuals and successfully recouped KRW 68 million in taxes from 17 defaulting taxpayers. Cryptocurrencies of those still evading their tax responsibilities remain under confiscation.A city official said that Cheongju will take firm and swift action to collect delinquent payments from those who conceal assets or are repeat offenders.