Standard Chartered has agreed to buy 100% of Zodia Custody, taking institutional cryptocurrency custody into direct bank ownership. The London-based lender said on Oct. 21 that its subsidiary, Standard Chartered I H Limited, will carry out the purchase. The transaction covers regulated operations in Singapore, Hong Kong, Australia, the United Arab Emirates and Luxembourg, and advances a takeover proposal accepted by Zodia shareholders and noteholders in May. Completion remains subject to regulatory approvals. Zodia's custody business will be folded into the bank's Securities Services division, adding cryptocurrency safekeeping to its existing securities and digital asset services. The combination is designed to give institutional investors a single platform, opening the way to additional custody, settlement and other service revenue as banks and asset managers expand digital asset exposure. Capturing that revenue depends on obtaining regulatory clearance and completing the integration. Ying Ying Tan, Standard Chartered's global head of Securities Services and Digital Assets, said the acquisition would broaden the bank's custody portfolio and its global institutional service capabilities. Standard Chartered has made a series of investments to build out its digital asset business. Earlier this month it launched custody services for Ripple's RLUSD stablecoin and set out plans to use RLUSD in collateral arrangements with LMAX Group. It has widened institutional Bitcoin and Ethereum trading in the UAE, and has announced Singapore custody services covering selected cryptocurrencies, stablecoins and tokenized real-world assets. Taken together, the initiatives link trading, custody and collateral management to existing banking relationships, easing institutional clients' reliance on multiple providers. Zodia's software and professional services arm is being separated into a new company, Zodia Solutions, established under SC Ventures, the bank's venture arm. Zodia Solutions will supply digital asset infrastructure to financial institutions that plan to introduce or expand blockchain-based financial services. Investors will include Northern Trust, NAB Ventures, SBI Ventures, Emirates NBD and other financial institutions, with Standard Chartered continuing as a customer. The structure gives the bank exposure to a standalone financial technology business while it integrates regulated custody into its traditional operations. Craig Perrin, chief executive of Zodia Solutions, said financial institutions are moving from experimental digital asset projects to full-scale operations, creating demand for specialist infrastructure providers. The separation reflects two distinct commercial opportunities. Custody businesses earn fees from safeguarding institutional assets; infrastructure businesses sell technology to banks seeking to offer similar services without building proprietary platforms. Standard Chartered's broader digital asset strategy also includes Zodia Markets, a trading infrastructure provider, and Libeara, a tokenization platform. Together they give the bank access to institutional markets spanning tokenized securities, trading, custody and technology services.

JPMorgan has assessed that recent crypto regulatory moves have partly offset the failure of the Clarity Act. However, the bank notes that risks remain for the sector. The analysis highlights that while regulatory actions provide some support, uncertainties persist.

Central Bank of Ireland fined Coinbase's Irish unit 3.25 million euros for mixing customer funds with other Coinbase customers' money from November 2020 to August 2025. The penalty was cut from 4.65 million euros via a 30 percent settlement discount and needs High Court approval. Coinbase said it self-reported and no customers lost money or access. A prior 21.46 million euros fine over AML gaps.

Chinese prosecutors are moving to confiscate a large cache of cryptocurrency and other assets tied to a multibillion-dollar fraud, asking UK courts to hand over more than 61,800 Bitcoin plus other coins and property that they say are proceeds of a 40.38 billion yuan (about $5.7 billion) investment scheme. The Tianjin No. 2 Intermediate People's Court said on Oct. 13 that it had accepted a request to recover assets allegedly generated by an illegal fundraising operation run by Qian Zhimin, also known as Yadi Zhang. The court formally accepted the case on Sept. 28, opening a six-month window for affected investors and other interested parties to join the confiscation proceedings. Prosecutors want to seize cryptocurrency along with cash, jewelry, financial products and real estate said to have been bought with illicit proceeds. Investors who stay out of the current proceedings remain eligible for compensation from any recovered assets. The alleged scheme From April 2014 to August 2017, Tianjin Lantian Gerui Electronic Technology, controlled by Qian, is accused of raising 40.378 billion yuan through unlicensed wealth-management products marketed in several Chinese cities. The products promised guaranteed principal and extremely high returns, reported at up to 300%, drawing commitments that ranged from hundreds of thousands to millions of yuan. Prosecutors say the money was recycled to pay earlier investors, fund fake projects and buy crypto, property, vehicles and luxury goods, leaving more than 102,000 investors with combined losses above 19.9 billion yuan. Assets named in the request The confiscation application identifies a crypto portfolio that includes: - more than 61,800 BTC - over 72,700 Bitcoin Cash - more than 3.6 million XRP - holdings of Bitcoin Gold, Bitcoin SV, Dogecoin and other tokens Prosecutors are seeking illegal proceeds, property bought with them and income generated by the assets, less any amounts already returned to investors under applicable law. Cross-border investigation and arrests Qian fled China in July 2017 carrying a computer said to hold crypto wallet access. She entered Britain on a St. Kitts and Nevis passport under the name Yadi Zhang and, investigators say, worked with associates to convert cryptocurrency into cash and assets. British police began tracing the funds in 2018, and searches that year of a London property and a safe-deposit box recovered devices and private keys that gave access to significant Bitcoin holdings. Qian was arrested in April 2024 after a joint British-Chinese investigation. Her associate Jian Wen was sentenced in 2024 to six years and eight months for laundering crypto tied to the fraud. Qian pleaded guilty to money laundering in September 2025 and was sentenced to 11 years and eight months at Southwark Crown Court on Nov. 11. Legal fight over ownership in the UK The seized crypto remains subject to competing claims in British courts. In an Oct. 12 judgment, High Court Justice Mark Turner ruled that Chinese law should govern the underlying ownership claims of victims seeking a share of the cryptocurrency. The court found that the original transactions, the alleged wrongdoing and the crypto purchases all occurred in China, making Chinese law applicable to the underlying rights. About 16,000 victims have joined recovery proceedings in the UK so far. Under Section 281 of the Proceeds of Crime Act 2002, claimants must show a legal ownership interest to recover assets. The October ruling did not decide whether individual investors are entitled to the Bitcoin or to any appreciation since seizure; those issues remain in dispute and lawyers for some victims are appealing. British prosecutors are pursuing civil recovery separately under the Proceeds of Crime Act, and the High Court has yet to resolve the competing claims. Why this matters The case underscores the persistent difficulty of cross-border asset recovery involving large crypto holdings, particularly when control of wallets, the chain of transactions and the choice of applicable law are contested. How it ends will shape the way victims of large crypto-linked frauds reclaim value, and how courts weigh foreign-law claims against domestic civil-recovery rules. Further UK hearings and appeals are expected as victims, prosecutors and lawyers argue over who ultimately gets the seized cryptocurrency.

China is moving to seize more than 61,800 bitcoin tied to a $5.7 billion fraud case. Spot Bitcoin ETFs attracted over $1 billion in inflows this week. President Trump is targeting overseas crypto scam operations.

South Korea's ruling Democratic Party is revisiting its 2027 crypto tax. Party leader Kim Minseok said the party must decide this year whether to proceed with the tax starting January 1, 2027. Passed in 2020 but delayed three times, it would take 22% of yearly crypto gains above 2.5 million won, about $1,900. The opposition People Power Party backs a delay. A final call is expected in November.

The Blockchain Association is pressing Congress to rewrite the tax rules governing digital assets. Its proposal would treat stablecoins as cash, tax staking rewards only at the point of sale, introduce de minimis exemptions for small transactions, and restrict broker reporting duties to custodial intermediaries.

Albuquerque has banned crypto ATMs and over the counter crypto services. Businesses must remove devices by December 5 or face $500 daily fines and license revocation. Landlords and retailers cannot provide space for the machines. Residents may still hold, mine, and privately transfer crypto via personal wallets. The CFTC reported crypto ATM scam losses above $388 million in 2025.

The Blockchain Association sent a letter to Senate leadership on Thursday urging lawmakers to pass crypto tax legislation. Chief policy officer Lindsay Fraser said Americans who use digital assets are not asking for special treatment. They want to follow the law and pay the taxes they owe, but current rules are often unclear and unworkable.