China to Pay State Employees in Digital Yuan

SBI Zodia Custody is discontinuing operations two years after its launch, Bloomberg reported. The joint venture was formed by Tokyo-based SBI Holdings and Zodia Custody, an institutional digital-asset platform backed by Standard Chartered, with ownership split 51% and 49% respectively.Photo by Haotian Zheng on UnsplashStrategic realignment behind exitAccording to people at the companies involved, the decision reflected shifting priorities at both partners. Zodia Custody chief executive Julian Sawyer described the move as a mutual alignment of strategy and said the company had prepared materials to seek local registration with Japan’s Financial Services Agency but had not filed an application before opting to exit. An SBI Holdings spokesperson said the dissolution did not signal a withdrawal from crypto custody or the company’s broader Asia strategy, describing the step instead as an effort to generate greater collective impact across SBI’s digital ecosystem. Security breaches shape regulatory climateThe retreat comes as overseas crypto businesses continue to face a cautious regulatory environment in Japan, a market shaped by several high-profile security breaches. Industry analyses have repeatedly noted that three of the largest crypto hacks targeted Japanese exchanges: Mt. Gox in 2014, Coincheck in 2018, and DMM Bitcoin in 2024. Mt. Gox lost about 850,000 BTC, now worth roughly $98 billion, and began making creditor repayments in July 2024 after years of legal proceedings. The repayment deadline was later extended to Oct. 31, 2025, and initial distributions totaled about 59,000 BTC, or just over 41% of the roughly 141,686 BTC earmarked for repayment, to an estimated 127,000 creditors. Coincheck’s 2018 breach involved what was then about $534 million in NEM tokens. Despite that episode, the company secured approval from the U.S. Securities and Exchange Commission (SEC) in November 2024 for a Nasdaq debut through a merger with Thunder Bridge. The transaction generated roughly $31.6 million in gross proceeds for the combined company. Moving forward, Coincheck is entering Europe through the acquisition of Aplo, a French-licensed digital asset brokerage. The most recent breach involved DMM Bitcoin, which had suspended operations after a May 2024 theft of more than 4,502.9 BTC. Its accounts and assets were transferred in March 2025 to SBI VC Trade, a cryptocurrency exchange owned by SBI Holdings, which said it would support 14 tokens previously listed on DMM that were not available on its own platform. Policy uncertainty as leadership shiftsAt the policy level, uncertainty is growing over Japan’s stance on crypto and blockchain following Prime Minister Shigeru Ishiba’s Sept. 7 announcement that he will step down. Ishiba, who took office in October 2024, has advocated for digital assets, with his latest remarks delivered at the WebX2025 event. There, he pledged greater state support for Web3 initiatives, describing the sector as a driver of innovation that could help address demographic decline and support broader economic change. Last month, Finance Minister Katsunobu Katō, seen as a potential contender to succeed Ishiba, said cryptocurrency could play a role in a diversified investment portfolio, noting its growing user base in Japan. While recent surveys show Sanae Takaichi and Shinjiro Koizumi as the leading preferences for the next Liberal Democratic Party leader, Katō has emphasized the need to foster a stable trading environment for digital asset stakeholders, balancing investor protection with industry innovation. Within this policy climate, SBI Zodia Custody’s shutdown underscores the operational and licensing challenges facing foreign-linked crypto ventures in Japan. 

Planetarium Labs’ blockchain MMORPG Nine Chronicles M launches worldwideWeb3 gaming company Planetarium Labs has officially released its mobile game Nine Chronicles M worldwide, which is now available for download on Google Play and the App Store.Photo by Jonas Leupe on UnsplashRedefining the MMORPG genreNine Chronicles M is the mobile version of the popular Nine Chronicles, a fully on-chain open-source massively multiplayer online role-playing game (MMORPG) — the first of its kind in the world — set against the backdrop of Norse mythology. The PC version of the game has consistently topped the ranks of dApp store DappRadar’s blockchain game listings with more than 200,000 users worldwide. Building on this experience, Planetarium Labs stated that the mobile version would provide an even more immersive game experience surpassing that of the original version.“With Nine Chronicles M, we aim to create an experience where the community not only enjoys the game but actually owns it,” said Kim Jae-seok, CEO of Planetarium Labs, referring to the game’s fully decentralized format and interactive open-source protocol. “From various events to creative and enhanced gameplay and the largest reward pool known in PvP battlegrounds, we promise to deliver an exciting and thrilling gaming experience.”Successful pre-registration turnoutThis latest release comes after the global pre-registration event that recently ended on Wednesday (UTC), which attracted some 200,000 gamers. Various rewards will be distributed to participants through a gacha game dubbed “Dvergr’s Gacha Workshop”. Such rewards include rare character costumes and allotted amounts of the in-game currency Nine Chronicles Gold (NCG), which can be used to purchase in-game items or staked to earn additional rewards. They can be claimed by downloading and logging into the game, Planetarium Labs explained.

Korean Ministry of Government Legislation Holds Lecture on Generative AI and BlockchainThe Korean Ministry of Government Legislation said it held a lecture on generative artificial intelligence and blockchain in light of the global rise of advanced technologies on Thursday as a means of educating and enhancing the digital capabilities of its employees.The legal environment is expected to undergo rapid and substantial changes in tandem with the fast-paced advancement of technological innovation. In response, the Ministry is conducting a three-part series of special lectures on the expected demands of legislation in the future to help its employees prepare accordingly.This lecture was the second installment in the series, titled “Essential Survival Strategies in the Era of Generative AI.”It was planned as per Minister Lee Wan-kyu’s special orders to educate Ministry employees on the promotion and regulation of new technologies such as generative AI and blockchain, which have been gaining traction as key topics in recent legislative discussions.Photo by RUT MIIT by UnsplashA future led by blockchainThe first lecture, held on July 20, was led by Professor Park Seong-jun, Head of the Blockchain Research Center at Dongguk University in Seoul. During the session, he discussed how blockchain technology would impact South Korean society in the future and shared his insights into the trajectory of related legislation.Living with generative AIThe most recent second lecture featured Chief Judge Kang Min-gu of the Seoul High Court, who delved into the kind of mindset that public officials should adopt in the era of generative AI. He emphasized the need to strike a balance between digital and analog expertise and highlighted the importance of reassessing our attitude towards innovative technology while still valuing the essential principles for our way of life.Managing money launderingThe upcoming final lecture, scheduled for next month, will be given by Park Jeong-hoon, the former Head of the Korea Financial Intelligence Unit, regarding the topic of virtual assets and anti-money laundering. Given the existing concerns about the potential for virtual assets to facilitate money laundering due to their key characteristics such as anonymity and decentralization, this lecture aims to underscore the significance of instituting regulatory measures for preventing money laundering related to virtual assets.“Our laws must evolve to reflect the times that we are living in. Our society is currently experiencing rapid digital innovation — through the enhancement of the digital capabilities of our Ministry employees, I hope that legal administration can undergo innovation as well,” said Minister Lee, who also attended the lectures.“In the future, we will continue to expand capacity-building education opportunities for Ministry employees, enabling them to facilitate legislation that is demanded by modern times.”