SBI–Zodia venture to shut down amid Japan crypto regulatory hurdles

Wealthy investors in the United Arab Emirates (UAE) are warming to cryptocurrencies while largely bypassing traditional private banks, a new survey shows. The poll, conducted by Swiss wealth manager Avaloq and reported by CoinDesk, found that roughly four in 10 high-net-worth individuals in the country hold digital assets, though only about 20% used conventional wealth managers to make such allocations. The survey gathered responses from 3,851 investors and 456 wealth professionals.Photo by Atikah Akhtar on UnsplashA rising tide in crypto wealthThe findings land amid a broader run-up in crypto fortunes. Henley & Partners’ 2025 Crypto Wealth Report, published in September, estimates 241,700 crypto millionaires worldwide this year—about 40% more than in 2024. Even so, UAE respondents in Avaloq’s poll voiced caution, citing the market’s sharp swings as a primary deterrent. Operational hurdles compound that wariness. Managing wallets, safeguarding private keys, and arranging custody remain friction points for would-be buyers. Among those who remain on the sidelines, Avaloq found that volatility topped the list of deterrents (38%), followed by limited understanding (36%) and distrust of trading platforms (32%). Younger cohorts drive crypto uptake, advisor shiftsFamily dynamics are increasingly driving crypto adoption. Younger members of ultra-wealthy households are introducing parents and grandparents to digital assets, Avaloq’s UAE survey found. Meanwhile, 63% of investors have either changed wealth managers or are considering doing so, often because they feel their questions about crypto are not being adequately addressed. Akash Anand, head of Middle East and Africa at Avaloq, described the moment as one of growing client curiosity met by a slow institutional response, prompting private banks to accelerate work on digital asset services. Dubai’s growing role as a crypto hub will again be on display in December, when it hosts Binance Blockchain Week 2025. The two-day conference, slated for Dec. 3–4, features appearances by Binance co-founder Changpeng Zhao, Strategy Chairman Michael Saylor, Ripple CEO Brad Garlinghouse, and Solana Foundation President Lily Liu. A debate between Zhao and long-time crypto skeptic Peter Schiff on Bitcoin’s merits versus tokenized gold is also expected, after Zhao invited Schiff to participate via X. Combined, the survey data and recent developments depict a UAE wealth market in the early stages of engagement with digital assets. While enthusiasm is building among younger investors and high-profile initiatives continue to draw attention, concerns about volatility and management complexity remain barriers to entry. The extent to which established wealth firms and new entrants can address those concerns will shape the next phase of the market’s growth. 

In a major crackdown, the Chengdu Public Security Bureau announced on May 15 the dismantling of an extensive underground banking network, resulting in the arrest of 193 suspects across China in an operation that unveiled illegal businesses using the U.S. dollar stablecoin, Tether (USDT).Photo by DrawKit Illustrations on UnsplashUnauthorized foreign exchange settlements These activities involved illicit transactions amounting to approximately 13.8 billion yuan ($1.9 billion). The investigation began in November 2022 when authorities detected suspicious activities involving underground banks in Chengdu’s Longquanyi district. In response, a specialized task force was formed, integrating experts from various police departments, including economic investigation, cyber security and legal affairs. This team uncovered unauthorized foreign exchange settlements that bypassed national regulations. On June 1 of last year, acting on instructions received from the Ministry of Public Security, the task force conducted coordinated raids in several major cities, such as Shanghai and Shenzhen. These efforts led to the capture of key figures in the criminal syndicate, involving the arrest of 25 suspects. Law enforcement seized numerous bank cards, payment instructions and other digital payment instruments tied to the illegal operations during these raids. A broader investigation across 26 provinces has resulted in 193 suspects being arrested. Using USDT to evade regulationFurther investigations revealed that since January 2021, the syndicate exploited its import and export business to facilitate illegal activities. By using USDT as a medium, they bypassed official foreign exchange channels to service clients needing to transfer funds internationally. Moreover, these operations were intricately linked to other illicit activities, including financial fraud and smuggling. In a related development, on May 13, BeInCrypto reported that the Chinese government arrested six individuals responsible for illicit crypto transactions worth $295 million. These arrests highlight the challenges and risks associated with cryptocurrency in unregulated environments. Additionally, the Hong Kong police recently apprehended three men at a currency exchange shop following a deceptive transaction involving Tether’s USDT. The suspects allegedly showed a customer ceremonial "hell money" before deceitfully persuading him to transfer about $128,073 worth of USDT, only to refuse the agreed-upon cash exchange afterward.  According to the South China Morning Post (SCMP), hell banknotes are a form of ceremonial paper money burned as an offering to ancestors or deities in traditional Chinese culture. Late last year, USDT was used by a gang of gold smugglers in Nepal, who received $16 million in the Tether stablecoin in exchange for the precious metal. A joint investigation carried out by the authorities in Nepal and China led to the arrest of two Chinese and 13 Nepalese nationals in connection with the illicit activity. Over the course of the weekend, it emerged that two Chinese nationals had been charged by the authorities in the United States with money laundering through Bahamas-based Deltec Bank. Deltec acts as the primary banker for Tether, prompting longstanding Tether critics to suggest illicit activity relative to the stablecoin issuer’s dealings with the bank. This series of arrests and discoveries underscores the ongoing efforts of Chinese authorities to clamp down on illegal cryptocurrency activities. The activity also poses problems for Tether in its efforts to maintain compliance and stamp out illicit use in the face of ever-increasing regulatory scrutiny worldwide.

LG CNS Chooses Six Startups to Foster Innovation in Digital TransformationLG CNS, the information technology (IT) arm of South Korean conglomerate LG Group, said Tuesday that it has chosen six startups to nurture under its sixth annual Startup Monster program — a program dedicated to supporting technology startups that are capable of pioneering consumer values in the realm of digital transformation (DX). By directly contributing to their growth as startups, LG CNS also aims to secure them as future business partners.Photo by Milad Fakurian on UnsplashAmong those startups is Zkrypto, a company specializing in zero-knowledge proof technology — a method of providing the validity of a statement without revealing the statement itself. Zkrypto will work with LG CNS on security solutions and privacy protection services necessary for operating digital finance services such as digital wallets and security tokens. The two companies already established their relationship earlier last month when they signed a memorandum of understanding (MOU) to jointly develop blockchain-powered business models.Investing in startup growthUnder the program, the companies will undergo a six-month technology assessment as well as receive KRW 100 million (approximately $75,000) in funding to demonstrate the feasibility of technology integration into their businesses. LG CNS said that it would carry out the assessment by leveraging its extensive business references and technical resources along with assistance from other IT experts.“Through the Startup Monster program, we will continue to discover and nurture promising startups with innovative technologies and create an ecosystem where we can grow together,” said Jeon Eun-kyung, Executive Director of LG CNS’ Convergence Technology Research Institute.Participants from diverse industriesThis year’s recruitment attracted over 240 applicants, resulting in a highly competitive selection ratio of 40:1. Other selected startups besides Zkrypto include GradeHealthChain, Quantum Universe, Delivery Lab, mAy-I, and Circle Platform, which specialize in emerging DX technologies, such as big data analysis, artificial intelligence (AI) modeling, and extended reality (XR).GradeHealthChain is known for its health management app LOG, which analyzes health checkup results and medical information to allocate an overall health score. Users can provide these scores and other medical information to insurance companies partnered with GradeHealthChain to receive premium discounts on insurance. In turn, the insurance companies can use this data to accurately assess the customer’s health status and recommend optimal insurance products. LG CNS plans to work with GradeHealthChain to create services for insurance product recommendations.On the other hand, Quantum Universe specializes in the planning, production, and distribution of XR content. With LG CNS, the company will jointly develop digital twin technology that replicates physical objects in a digital environment for applications in smart factories and manufacturing. They are also pursuing marketing projects using metaverse technology.mAy-I and Circle Platform were chosen for the program for their impressive technical capabilities in data collection and AI modeling. Meanwhile, Delivery Lab operates a food distribution platform in the smart logistics field.LG CNS has been actively nurturing startups and working with them through the Startup Monster program since 2018. Up until last year, a total of 22 startups participated in the program.SelectStar, one of last year’s participants, is currently collaborating with LG CNS as a data construction partner for AI businesses. The two companies have notably created KorQuAD 2.0, a Korean language machine reading comprehension dataset.In addition, Lovo, an AI text-to-speech solutions startup from the third Startup Monster program, worked with LG CNS on developing an AI contact center. According to industry sources, Lovo’s corporate value has increased more than 20 times from the time it participated in the program, reaching KRW 100 billion.