Zodia Markets Achieves Crypto Broker-Dealer Approval in UAE

Japanese Prime Minister Shigeru Ishiba announced his resignation on Sept. 7, citing completed trade talks with the United States and growing dissent within the ruling Liberal Democratic Party (LDP). While the political transition follows the party’s defeat in July’s upper house elections, Ishiba’s departure also creates uncertainty for Japan’s crypto and Web3 agenda, which he had championed. Just two weeks earlier, at the WebX2025 event, Ishiba pledged stronger state backing for Web3 initiatives, noting their potential for addressing Japan’s demographic challenges and driving long-term economic transformation. He highlighted token-based community governance pilots, integration of Web3 at the Osaka Expo, and a five-year startup growth plan centered on digital industries. His exit now raises questions about whether these priorities will carry the same weight under new leadership.Photo by taro ohtani on UnsplashLeadership contest brings policy uncertaintyPotential successors signal diverging approaches. As per a BeInCrypto report, former Economic Security Minister Sanae Takaichi, who topped an August Nikkei approval survey with 23% support, is regarded as favoring tighter oversight. Agriculture Minister Shinjiro Koizumi, in second place with 8%, has shown greater receptiveness toward digital assets. According to Bloomberg, Finance Minister Katsunobu Kato is also considered a contender. Earlier, he emphasized balancing investor protection with space for innovation, noting the rapid uptake of crypto among Japanese investors. The LDP is preparing for a leadership election on Oct. 4, with 295 lawmakers each casting one vote and an equal 295 votes allocated proportionally to the party’s 1.03 million members, for a total of 590 ballots. Until then, investors and industry players are watching for signals on whether Japan’s digital asset roadmap will remain a priority. Adoption advances beyond politicsBeyond politics, adoption is accelerating across Japan’s financial system. Japan Post Bank plans to tokenize deposits on a permissioned blockchain by 2026 using the DCJPY token developed by DeCurret DCP, a Mitsubishi UFJ–backed venture. With $1.29 trillion in deposits across 120 million accounts, the move could streamline settlement of tokenized securities. Corporate strategies are also shifting. Last month Tokyo-based game developer Gumi said it would acquire 2.5 billion yen ($17 million) worth of XRP between September 2025 and February 2026, following its earlier 1 billion yen ($6.8 million) Bitcoin purchase this year. The company described XRP as central to its expansion into international remittance and liquidity networks led by its largest shareholder, SBI Holdings. Japan’s crypto footprint abroad is growing as well. Coincheck, a leading exchange in Japan, is entering Europe through the acquisition of Aplo, a French-licensed digital asset brokerage. The deal follows Coincheck’s Nasdaq listing last year via its Netherlands-based holding company. 

Japan is moving aggressively to cement its status as a global hub for digital assets. A decisive election victory for the ruling party has cleared the legislative runway for sweeping crypto tax reforms, while the country's largest financial institutions are simultaneously preparing to test blockchain-based securities trading. For global investors, these developments signal a deepening integration of blockchain technology into Japan's traditional financial infrastructure.Photo by PJH on UnsplashElection win seen as pro-cryptoPrime Minister Sanae Takaichi’s Liberal Democratic Party secured a majority in the recent general election. According to local media outlet CoinPost, the digital asset industry views this political stability as a positive signal, as pro-crypto initiatives such as a tax overhaul might otherwise have faced legislative obstacles. Currently, crypto profits in Japan are classified as miscellaneous income and taxed at punitive rates of up to 55%. Under the proposed framework, digital assets would be reclassified under the Financial Instruments and Exchange Act and become subject to a flat 20% capital gains tax, bringing them in line with traditional equity investments. However, officials have noted that full implementation will require a preparation period of approximately two years to ensure exchanges and self-regulatory organizations can fully adapt to the new legal framework. Additionally, Prime Minister Takaichi’s expansionary fiscal policies are expected to drive risk-on market sentiment. For foreign investors, any potential yen depreciation resulting from these macroeconomic policies could inflate yen-denominated crypto prices, creating unique arbitrage opportunities. Brokerages pilot blockchain tradingSeparately, according to a Nikkei report, Japan’s top brokerages—Nomura and Daiwa—are partnering with the nation’s three megabanks (Mitsubishi UFJ Financial Group, Sumitomo Mitsui, and Mizuho) to launch a blockchain-based securities trading platform, in a bid to modernize the country’s capital markets. The project will allow investors to buy and sell stocks, government and corporate bonds, and mutual funds using fiat-pegged stablecoins. The pilot is slated to begin this month, with a commercial rollout targeted for the coming years. This stablecoin initiative bypasses traditional exchange hours, enabling continuous trading and real-time settlement. While the U.S. recently transitioned to a next-day settlement cycle, moving to instant blockchain settlement would allow Japan to leapfrog Western markets and eliminate time-zone friction for foreign capital. The move aligns with a broader push by Japanese corporate giants to utilize stablecoins for both wholesale and retail transactions. Regulators tighten cybersecurityIn a more recent report, CoinPost noted that the Financial Services Agency has drafted new guidelines aimed at upgrading the cybersecurity posture of domestic crypto exchanges, as part of efforts to safeguard Japan’s rapidly expanding digital economy. The regulator cited a shift in the global threat landscape, warning that cold wallets alone are no longer sufficient against recent cryptocurrency breaches, which have involved hackers using sophisticated social engineering tactics and third-party partners as entry points for attacks. The proposed defense strategy centers on more rigorous security requirements, enhanced industry collaboration, and government-led stress testing. By year-end, all virtual asset service providers will be required to conduct formal cybersecurity self-assessments, while facing stricter regulatory scrutiny of third-party audits and security personnel. Additionally, regulators plan to conduct real-world penetration testing on select firms and share the findings across the sector to strengthen security overall. 

South Korea’s Financial Services Commission (FSC) is set to exclude stablecoins from the list of digital assets corporations will be permitted to trade under forthcoming corporate crypto trading guidelines, according to a report by Herald Business.Photo by DrawKit Illustrations on UnsplashThe guidelines will outline the conditions under which listed companies and registered professional investment firms can buy and sell digital assets for investment or treasury management purposes. As regulators move to prevent speculative or indiscriminate investment in the early stages of opening the market to corporations, they have opted to limit the scope of permitted assets. Consequently, U.S. dollar-pegged stablecoins such as USDT and USDC are expected to be excluded from the approved list. Authorities plan to release the trading guidelines after the Digital Asset Basic Act is finalized. This move partly reflects regulatory constraints: stablecoins are not currently classified as cross-border payment instruments under South Korea’s Foreign Exchange Transactions Act. The law requires payments and receipts involving such instruments to be processed through authorized foreign exchange banks, leaving stablecoins outside the regulated framework. Companies seek stablecoins for FX hedgingThis exclusion, however, does not entirely prevent companies from trading stablecoins. Firms can still access them through overseas channels, including external wallets like MetaMask or over-the-counter platforms operated by exchanges such as Coinbase. Currently, South Korean companies cannot open corporate crypto accounts domestically, making it difficult to use digital assets for formal trade settlement. Nevertheless, payments in stablecoins are sometimes still handled through individual or offshore accounts. Given these workarounds, some listed companies with large international trade exposure have petitioned regulators to allow stablecoins under the proposed corporate investment guidelines, according to people familiar with the matter. Advocates argue that stablecoins like USDC can be easily traded on exchanges and track the U.S. dollar in real time, making them a highly effective tool for managing foreign-exchange risk. As the industry awaits this regulatory clarity, the impact is already rippling into the traditional financial sector. Kbank—the banking partner of Upbit, Korea’s largest crypto exchange—recently debuted on the KOSPI benchmark index after two previously failed attempts to go public. According to Bridgenews, Korea Investment & Securities initiated coverage on March 6 with a “neutral” rating, noting that regulatory uncertainty and rising lending competition could limit the bank's near-term growth. However, the brokerage added that the lender’s valuation could improve if it successfully expands its crypto business alongside clearer regulations. Baek Doo-san, an analyst at Korea Investment & Securities, noted that Kbank’s valuation could see re-ratings if the Digital Asset Basic Act and policies promoting the stablecoin industry are implemented quickly. He said that despite potential overhang risks, faster policy progress could drive multiple expansion, adding that the bank could then be valued in line with its peers’ price-to-book ratios. Survey shows persistent market fearThese shifting regulatory sands come at a time when the broader crypto market remains under pressure. According to a weekly survey of South Korean investors conducted by CoinNess and Cratos last week, 24% of respondents expect Bitcoin to rise or surge this week, up from 10.3% in the previous survey. Another 28.1% expect the market to move sideways, compared with 25.5% a week earlier, while 47.9% predict a decline or sharp drop, down from 64.2%. Although bullish sentiment has ticked upward from the previous week, bearish expectations still dominate the overall landscape. When asked about broader market sentiment, 43.4% of respondents said they felt fearful or extremely fearful. About 35.4% described sentiment as neutral, and only 21.2% reported feeling optimistic or extremely optimistic. With safe-haven markets facing renewed uncertainty amid geopolitical tensions between the U.S. and Iran, the survey also explored how a potential correction in South Korea’s stock market might affect cryptocurrencies. The largest share of respondents, 39.7%, believed it would be negative for crypto. Meanwhile, 23.6% said it would benefit Bitcoin exclusively, 23.4% felt it would be positive for the broader crypto market, and 13.3% expected it to have no impact.