Crypto markets have risen following the US Federal Reserve’s interest rate cut. However, the situation is less favorable in other regions.
In Thailand, many bank customers are facing significant account lockouts, while France is considering actions that could revoke crypto licenses granted in other EU member states.
Conversely, Australia has removed the licensing requirement for stablecoin distributors, simplifying their operations.
From the US Fed’s influence on crypto markets to Pakistan’s welcoming stance towards cryptocurrency, last week was pivotal for the industry.
Here’s the inaugural weekly edition of Global Express:
US Fed cuts interest rates
On Wednesday, the US Federal Reserve lowered interest rates by 0.25%. This marked the central bank’s first rate cut since December 2024, bringing the short-term rate down from 4.3% to approximately 4.1%. Bitcoin’s (BTC) price surged following the announcement.
In the long run, crypto analysts anticipate that the rate cut will benefit markets, as crypto prices closely align with liquidity cycles. Following the rate reductions during the COVID-19 crisis in 2020, crypto markets experienced a significant boom by early 2021.
Some experts caution about a potential short-term price correction. Nic Puckrin, founder of Coin Bureau and market analyst, remarked, “The main risk is that the move is already priced in … expectations are high, raising the likelihood of a ‘sell the news’ pullback. When that occurs, speculative assets, particularly memecoins, are particularly vulnerable.”
The Fed had aimed to maintain its rate steady to manage inflation, which remains above its target. However, disappointing job statistics, highlighting a significant slowdown in hiring amid the inconsistent economic strategies of President Donald Trump, necessitated a change in approach.
Lower interest rates lead to reduced borrowing costs for mortgages, car loans, and business financing, a strategy the Fed hopes will enhance hiring.
France could revoke EU passports for crypto firms
On Monday, France’s securities regulator, the Autorité des Marchés Financiers (AMF), voiced concerns regarding the inconsistent enforcement of the Market in Crypto-Assets (MiCA) law.
MiCA serves as the EU’s primary crypto legislation, detailing requirements for stablecoin issuers, exchanges, and virtual asset service providers. It includes a travel provision, permitting companies licensed in one EU member state to operate across others.
The AMF is worried that crypto companies are seeking the most favorable jurisdictions to apply for licenses, enabling them to operate across Europe. Marie-Anne Barbat-Layani, chair of the AMF, stated that crypto firms are “shopping around for regulatory leniency across Europe, attempting to find a weak link that offers a license requiring fewer obligations.”
She acknowledged that such a move would severely undermine trust in European markets. “It’s a complex legal issue and sends a negative message about the single market — it’s a bit like an ‘atomic weapon’ … yet it remains a possibility we’re keeping in reserve.”
The remarks from the AMF chair coincide with a rising trend. France, along with Austria and Italy, has become the third EU member state advocating for the European Securities and Markets Authority to oversee crypto firms.
Regulators from these nations are advocating for heightened oversight following a review of the Malta Financial Services Authority’s authorization process, which was found to have only “partially met expectations.”
Pakistan opens its doors to crypto
Recently, the Pakistan Virtual Asset Regulatory Authority (PVARA) announced that it is inviting major crypto firms to express their interest in entering the country’s digital asset market.
Chair Bilal bin Saqib, who is also the state minister for crypto and blockchain, indicated a desire for the world’s leading crypto companies to “collaborate on establishing a transparent and inclusive digital financial future for Pakistan.”
PVARA requests companies to provide detailed information, including profiles, proposed services, security standards, revenue, assets under management, current licenses, and tailored business model suggestions for Pakistan’s markets.
Related: Pakistan launches crypto regulatory body for digital asset sector
PVARA is a newly established, independent regulator aimed at fostering the digital asset industry as Pakistan seeks to draw in this sector. According to Chainalysis’ 2025 Global Adoption Index, Pakistan ranks third in global crypto adoption.
Thailand scam crackdown freezes millions of bank accounts
In an unusual turn of events, Bitcoin enthusiasts celebrated as millions of bank accounts in Thailand were frozen earlier this week.
This action was part of a nationwide crackdown on scams by the Cyber Crime Investigation Bureau, which also affected the accounts of innocent vendors and merchants. A total of around 3 million accounts were frozen, and all customers now face daily transaction limits.
On Monday, Wisit Wisitsora-at, secretary of the Digital Economy and Society Ministry, reassured the public by stating, “Do not panic. This suspension is temporary and will be lifted once investigations confirm that no wrongdoing has occurred.”
However, some in the crypto community were already suggesting alternatives. Bitcoin advocate Daniel Batten commented, “Thank you BoT [Bank of Thailand] for the unexpected Bitcoin marketing.”
Jimmy Kostro from the Bitcoin Learning Center in Thailand shared:
While Bitcoin could offer a solution to bypass government restrictions on transactions, using crypto for payments remains illegal in Thailand. The government has just introduced a crypto payments sandbox aimed at rejuvenating its ailing tourism sector.
Australia eases requirements for stablecoin distributors
This Wednesday, the Australian Securities and Investments Commission (ASIC) has introduced an exemption for stablecoin distributors.
Entities that distribute stablecoins issued by an Australian financial services (AFS) licensee will no longer need to possess their own AFS license.
The ASIC remarked that this decision is part of its commitment to promote “responsible innovation in the evolving digital assets arena while ensuring consumer protections are upheld.”
Currently, this exemption applies to a single company.
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