Cryptocurrency markets are experiencing a rise following the US Federal Reserve’s interest rate cut. However, the situation is less favorable in other regions.
Bank customers in Thailand are facing widespread account lockouts, while France is considering the possibility of blocking companies with crypto licenses obtained from other EU member states.
In contrast, Australia has eased requirements for stablecoin issuers by removing the need for a specific license.
From the US Fed’s policy positively affecting crypto markets to Pakistan embracing cryptocurrency, significant changes occurred in the industry last week.
Introducing the inaugural weekly edition of Global Express:
US Fed cuts interest rates
This Wednesday, the US Federal Reserve reduced interest rates by a quarter of a point, marking its first cut since December 2024, which lowered the short-term rate from 4.3% to approximately 4.1%. In response, Bitcoin’s (BTC) value surged.
Long-term, crypto analysts predict that the rate cut will benefit markets, as crypto prices often correlate strongly with liquidity cycles. Following the rate cuts after the COVID-19 crisis in 2020, crypto markets boomed by early 2021.
Some analysts expressed concerns about potential short-term price corrections. Nic Puckrin, founder of Coin Bureau, noted, “The primary risk is that the reaction is already factored in … expectations are high, increasing the likelihood of a ‘sell the news’ decline, particularly affecting speculatively driven assets like memecoins.”
The Fed originally intended to maintain its rate to tackle persistently high inflation. However, alarming reports of poor job numbers, which indicated stagnant hiring due to President Donald Trump’s unpredictable economic policies, necessitated a shift in strategy.
Lower interest rates result in reduced borrowing costs for homes, cars, and business loans, aiming to stimulate hiring.
France may revoke EU passports for crypto firms
On Monday, France’s securities regulator, the Autorité des Marchés Financiers (AMF), expressed concerns regarding inconsistent enforcement of the Market in Crypto-Assets (MiCA) regulation.
MiCA serves as the EU’s primary crypto legislation, outlining requirements for stablecoin issuers, exchanges, and other virtual asset service providers. It includes a travel rule, permitting licensed companies in one EU state to operate across all member states.
The AMF raised alarms that crypto firms are seeking the most lenient jurisdictions for licensing while operating throughout Europe. AMF chair Marie-Anne Barbat-Layani stated that firms are “regulatory shopping across Europe, attempting to find a weak link that offers a license with fewer obligations than others.”
Barbat-Layani admitted that such an action would severely undermine trust in European markets. “It poses significant legal complexities and is not a positive signal for the single market — it resembles an ‘atomic weapon’… but it remains a potential option we might consider.”
The AMF head’s remarks align with a broader trend, as France, Austria, and Italy call for the European Securities and Markets Authority to oversee crypto firms.
These regulators seek stricter controls following assessments indicating that the Malta Financial Services Authority’s licensing process only “partially met expectations.”
Pakistan welcomes crypto
This weekend, the Pakistan Virtual Asset Regulatory Authority (PVARA) invited major cryptocurrency firms to submit Expressions of Interest for entry into the nation’s digital asset market.
PVARA chair and minister of state for crypto and blockchain, Bilal bin Saqib, stated their goal is to collaborate with leading crypto companies to “create a transparent and inclusive digital financial future for Pakistan.”
PVARA requested detailed information, including company profiles, proposed services, security protocols, revenue, assets under management, existing licenses, and tailored business models for the Pakistani market.
Related: Pakistan establishes crypto regulatory body for digital asset sector
PVARA is a new, independent regulator specifically designed for the digital asset sector to attract global players. According to Chainalysis’ 2025 Global Adoption Index, Pakistan ranks third in cryptocurrency adoption worldwide.
Thailand scam crackdown freezes millions of bank accounts
In Thailand, Bitcoin enthusiasts reacted unexpectedly with joy as millions of bank customers faced account freezes earlier this week.
This action is part of a nationwide crackdown on scams by the Cyber Crime Investigation Bureau, which also affected innocent vendors and merchants. Approximately 3 million accounts were frozen, and there are imposed daily transfer limits for all bank users.
On Monday, the Secretary of the Digital Economy and Society Ministry, Wisit Wisitsora-at, urged the public “not to panic. The suspension is temporary and will be lifted upon confirmation of no misconduct.”
Yet, some in the crypto community have suggested alternatives. Bitcoin advocate Daniel Batten remarked, “Thank you BoT [Bank of Thailand] for the free Bitcoin promotion.”
Jimmy Kostro from the Bitcoin Learning Center in Thailand shared:
While Bitcoin provides a means to circumvent governmental restrictions on transactions, using cryptocurrency for payments is currently prohibited in Thailand. The government has recently opened a crypto payments sandbox for tourists to help revive its struggling tourism sector.
Australia relaxes regulations for stablecoin distributors
This Wednesday, the Australian Securities and Investments Commission (ASIC) introduced an exemption for stablecoin distributors.
Entities distributing a stablecoin issued by an Australian financial services (AFS) licensee are no longer required to possess an AFS license themselves.
The ASIC emphasized that this change supports “responsible innovation within the rapidly evolving digital assets landscape, ensuring essential consumer protections are maintained.”
Currently, this exemption is applicable to only one company.
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