Zodia Custody, backed by Standard Chartered, has endedits Japan joint venture with SBI Holdings two years after launch, Bloomberg reported. The unit,called SBI Zodia Custody, was 51% owned by SBI and 49% by Zodia. Talks with Japan’s Financial Services Agency over alocal registration never progressed.“This is a strategic alignment between SBI andourselves as a mutual decision that we have other priorities and they haveother priorities,” Zodia chief executive Julian Sawyer commented for Bloomberg.Challenges in Japan’s MarketJapan remains a difficult entry point for foreigncrypto firms due to strict oversight. The FSA aims to encourage blockchaininnovation but has kept rules tight after scandals, including Mt. Gox’s collapseand the $300 million breach at DMM Bitcoin in 2024.SBI said the closure reflects a shift in its digitalstrategy. “This dissolution does not represent a retreat in either our custodybusiness or our strategy in Asia,” spokesman Kosuke Kitamura also told the media publication. He called ita “proactive decision aimed at pursuing group-wide synergies with greater speedunder our digital ecosystem.”Zodia’s Global MovesZodia Custody said the decision does not affect itswider Asian strategy. Sawyer noted the firm has “a finite amount of resourcesavailable globally.” The company recently expanded in the Middle East throughthe acquisition of Tungsten Custody Solutions in the UAE.Expect ongoing updates as this story evolves.This article was written by Jared Kirui at www.financemagnates.com.