Hong Kong’s PCPD investigates Worldcoin over privacy concerns

Bybit Denies Plans to Leave UK MarketReporting related to Dubai-based crypto exchange Bybit had suggested in recent days that the firm was leaving the UK market. However, the company has since responded to state that it has strongly reaffirmed its commitment to the UK market and its dedication to collaborate with regulators to find mutually agreeable solutions.Photo by Marcin Nowak on UnsplashCompany clarificationThat speculation had arisen in the first place on the basis of difficulties the business may experience as a consequence of the upcoming implementation of new strict marketing rules for crypto firms in the UK. Taking to social media on Thursday, the company stated:”At Bybit, we consider the UK to be a highly important market for the advancement of crypto and blockchain technologies. Our commitment to this market is unwavering, and we intend to maintain our presence in the UK for the long term. Meanwhile, we are dedicated to working collaboratively with regulators upon the new law to ensure the responsible and secure development of the industry.”The reports published earlier in the week had fueled speculation that Bybit might exit the UK market, along with other jurisdictions characterized by rigorous crypto regulations. The concerns primarily centered around the UK’s recently introduced financial promotion rules, designed to bolster customer protection and enhance understanding of crypto investments.Ben Zhou, Co-Founder and CEO of Bybit, commented on the situation, underscoring the exchange’s unwavering commitment to regulatory compliance. Zhou confirmed that ongoing discussions with UK regulators aimed to find mutually beneficial solutions, aligning the interests of all stakeholders involved. He emphasized Bybit’s commitment to keeping its community well-informed about the progress of these discussions.Regulatory changesThe recent move by Bybit is in direct response to regulatory changes introduced by the UK’s Financial Conduct Authority (FCA) in June. These changes were implemented to improve transparency and enhance customer protection within the crypto sector, with a particular focus on ensuring that UK customers have a clear understanding of the risks associated with crypto investments. The FCA also outlined various pathways for asset promotion, including those involving FCA-authorized personnel or crypto companies registered with the FCA.Exchanges have been very much under the cosh in 2023 when it comes to regulatory pressures. Bybit, accompanied by MEXC Global, Bitforex, and Bitget, were all issued with a warning by the Japanese regulator, the Financial Services Agency (FSA), in April on the basis that the exchanges were running unregistered crypto asset exchange business operations within Japan. In May Binance left the Canadian market.In the months that followed, the leading global crypto exchange was forced out of markets in Germany, Belgium, The Netherlands, and Cyprus due to regulatory pushback. In May Seychelles-based Huobi was ordered to cease its business offering in Malaysia by the local regulator.Moving forwardDespite these setbacks, Bybit has been making efforts to move the business forward. In May it obtained approval from the authorities in Kazakhstan to offer its services within the country. Some weeks prior, it announced that it had chosen Dubai as the global exchange’s headquarters.The firm also introduced TradeGPT recently, an AI-powered educational tool designed to enrich traders’ engagement with the crypto market.

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. 

Komainu and Crypto Garage partner to bring about institutional crypto adoptionKomainu, the crypto custodian and portfolio company of Japanese financial services conglomerate Nomura, has partnered with Crypto Garage to work towards enabling institutional crypto adoption in Japan.The digital asset custodian made the announcement of the partnership in a press release published to its website on Wednesday. The collaboration builds upon the investment by Crypto Garage's parent company, Digital Garage, in Komainu, aimed at fortifying Komainu’s market presence in Japan. The investment also unites Digital Garage with other prominent Japanese stakeholders in Komainu, including Laser Digital, the digital asset subsidiary of Nomura, alongside the Nomura Research Institute.Photo by Agathe on UnsplashCapitalizing on growing institutional interestCrypto Garage, a company that provides custody, over-the-counter (OTC) trading and settlement services in both the Japanese and international markets, has seen a growing interest from Japanese institutions in digital assets. This has spurred Komainu and Crypto Garage to develop advanced digital asset custody solutions tailored specifically to meet institutional demands, with a strong focus on security and compliance.The partnership harnesses the diverse expertise of both entities, laying the foundation for what both firms hope will be a robust and dependable digital asset management platform throughout the lifecycle of these assets. Speaking to that notion, Crypto Garage CEO Masahito Okuma suggested that the firms share a common vision, adding:“By combining forces, we will leverage our collective expertise to deliver solutions that satisfy the unique needs of Japanese institutions.”Nicolas Bertrand, CEO of Komainu, expressed his optimism regarding the collaboration and the Japanese market, stating:“Japan is a key jurisdiction for digital assets and continues to be an important part of our plans to be the most coveted institutional-grade custodian globally.”This partnership represents a significant leap forward in advancing the institutional crypto landscape in Japan. With the support of established financial entities such as Nomura Holdings Inc. and Digital Garage Inc., this venture is poised to instill confidence among Japanese institutions by demonstrating a strong commitment from the traditional financial sector.This collaboration not only demonstrates the evolving dynamics of institutional crypto services in Japan but also underscores the broader acceptance and integration of digital asset management solutions within traditional financial frameworks. It signifies a matured understanding and approach to digital asset custody and management.Komainu, established as a joint venture between Nomura, CoinShares and Ledger, operates in full compliance with regulatory standards, offering a fusion of traditional financial services with state-of-the-art security measures for institutional custody in the digital age. Earlier this year, the firm entered into a partnership with crypto exchange platform OKX, providing the company with digital asset custody services.In August, Komainu secured a trading license from the Virtual Assets Regulatory Authority (VARA) in Dubai. Meanwhile, Crypto Garage extends its services to crypto asset businesses, both within Japan and internationally, covering custody, over-the-counter (OTC) trading and settlement services for digital assets.