Bitget Report Finds Gen Z Dominates Crypto Copy Trading

The Korea Customs Service (KCS) is preparing to establish a dedicated task force to combat the surge in cryptocurrency-related crimes. According to a report by local media outlet Joseilbo, this initiative was deliberated in a meeting chaired by KCS Commissioner Ko Kwang-hyo, specifically convened to discuss strategies against foreign exchange violations. The KCS reported that last year, it uncovered a total of 198 criminal incidents related to foreign exchange activities, with the combined value reaching approximately KRW 1.9 trillion ($1.4 billion).Photo by Mathew Schwartz on UnsplashCrypto involved in 88% of forex violations Of the total amount mentioned, violations of the Foreign Exchange Transaction Act comprised KRW 1.654 trillion, with 88% of these incidents involving virtual assets. This represents a dramatic surge in the involvement of virtual assets in financial crimes, especially when compared to 2020, where crypto-related offenses constituted 3% of the total value linked to forex violations. This trend underscores the rapidly growing role of virtual assets in such illicit activities. To address these issues, the KCS is set to broaden its crackdown on illicit cryptocurrency activities. This crackdown targets practices such as transferring foreign currency overseas to acquire virtual assets for arbitrage trading and using virtual assets to conceal trade payments, thereby attempting to bypass customs duties.Task force’s international collaborationAs part of this initiative, the country's customs agency aims to build a task force focused on tackling crypto crimes. This specialized group will be responsible for gathering and analyzing data, conducting investigations and recommending regulatory enhancements. The task force will collaborate with financial regulators to obtain crypto transaction records from domestic cryptocurrency exchanges. Moreover, it will work with customs authorities of other countries, including Hong Kong, to collect details on crypto transactions conducted abroad. 

China's highest judicial authorities, the Supreme People's Court and the Supreme People's Procuratorate, have released a judicial interpretation that includes the use of virtual assets to transfer illicit funds as a recognized method of money laundering. This move aims to strengthen the legal basis for investigating and prosecuting cases linked to cryptocurrency and money laundering activities.Photo by Vidar Nordli-Mathisen on UnsplashClarifying the legal status of crypto transactionsThe new judicial interpretation classifies virtual asset trading as a potential channel for money laundering. It specifies that using virtual-asset transactions or financial-asset exchanges to transfer or convert the proceeds of crime falls under the act of “disguising or concealing the source and nature of criminal proceeds and their gains by other means” as outlined in the country’s criminal law. Liu Honglin, founder of the Shanghai-based Man Kun law firm, clarified in a social media post that the interpretation does not equate all cryptocurrency trading with money laundering. According to Liu, the directive is not intended to criminalize the possession or trading of cryptocurrencies domestically but to provide clear legal guidelines for prosecuting specific illegal activities linked to crypto transactions. Impact on crypto trading and enforcementShao Shiwei, a fintech lawyer based in Shanghai, suggested that this interpretation could pose challenges for stablecoin merchants and increase legal risks for those involved in receiving illicit funds through crypto trading. The interpretation is part of broader efforts to regulate the virtual asset space, following the comprehensive ban on crypto trading activities by the People’s Bank of China and other authorities in September 2021. Despite the ban, many investors have continued to find ways to engage in crypto trading, sometimes circumventing capital control measures. For example, in May, Chinese police dismantled an underground bank that utilized the USDT stablecoin for foreign currency exchanges involving over 13.8 billion yuan ($1.9 billion). This incident underscores the ongoing challenges in enforcing existing regulations against the backdrop of innovative methods to bypass legal restrictions. 

Netherlands-based mobile wallet Swoo Pay has joined forces with global financial giant Mastercard to target the Southeast Asian market, offering crypto cashback on everyday purchases. Crypto loyalty tokensThe partnership was announced via a press release published on Cointelegraph earlier this week. Through Swoo's platform, users stand to gain crypto rewards, specifically Swoo Loyalty Tokens, for each contactless payment made via the app using digitized Mastercard cards. The partnership marks yet another step forward in the convergence of traditional financial systems with the burgeoning world of cryptocurrency. It reflects a broader trend among major financial institutions and retailers, who increasingly view cryptocurrency integration as a means to revitalize loyalty programs. Once users accrue “Tokenback” in the form of Swoo Loyalty Tokens, they have the flexibility to either exchange their rewards for popular cryptocurrencies like USDT or BTC within the Swoo app or convert them into fiat currency through partnering services. As Swoo continues to refine its crypto rewards platform, it will incorporate more Web3 features, further enhancing the utility and value of loyalty tokens within its ecosystem.Photo by Markus Winkler on UnsplashTargeting emerging marketsSwoo Pay is targeting emerging markets. Alongside Southeast Asia, that also brings the Middle East region and Africa within the scope of its marketing efforts for this product offering. Emerging markets have long been seen as ideal markets within which to bring about crypto adoption more generally. The significance of this announcement wasn’t lost on Nicki Sanders, chief technology officer (CTO) with tokenized real estate enterprise, Realio. Taking to social media, Sanders cited crypto adoption as one of three main reasons as to why this partnership could be a game-changer.   Sanders feels that the nature of the offering will result in crypto adoption as daily crypto use will be boosted. In turn, that will bring digital currencies into the realm of mainstream acceptability.She also feels that the product offering will be significant in terms of financial inclusion as it’s very accessible to underserved communities. Additionally, Sanders identifies the inherent innovation as being likely to result in mass adoption. “Focusing on Android and Huawei users, Swoo Pay navigates around Google service sanctions, offering a fresh pathway to digital payments,” she claims.This partnership builds upon the success of a previous trial campaign dubbed “Super Tokenback with Mastercard.” During the three-week initiative, users enjoyed 5% Tokenback (crypto cashback) on all Mastercard purchases made through Swoo Pay. The results were positive, with over 17,000 participants conducting upwards of 128,000 transactions. Not only did this drive increase card spend, but it also introduced a wave of new consumers to the concept of crypto-backed rewards. Representatives from Swoo emphasize the seamless integration of crypto into mainstream markets, ensuring compliance with local regulations and simplifying the launch and scalability of marketing campaigns to attract new users. Conversely, officials from Mastercard underscore the company's commitment to expanding the possibilities of digital payment instruments, prioritizing convenience, technological advancement and security. They highlight the role of Swoo Pay in addressing issues with tokenized payments for Android device users, thereby broadening accessibility to these innovative financial solutions.