Bitcoin Retreats Amid Global Turbulence: Weak Yen, Stablecoin Regulation, and Money Laundering Networks

Crypto markets are under pressure from multiple fronts. Bitcoin fell to $84,191 as the Japanese yen hits 10-month lows, triggering liquidations in carry trade operations that had been profitable.

The Domino Effect of the Japanese Stimulus Package

Japan approved a plan of $135 billion (¥21.3 trillion) to subsidize electricity and gas. The market reaction was chaotic:

• The yen collapsed to its weakest level in 10 months against the dollar
• The yield on 10-year JGB bonds jumped to 1.84% (, the highest since 2008).
• Traders fear that massive spending will force debt issuance and increase rates from the Bank of Japan.

Historically, a weak yen financed the Bitcoin carry trade: borrowing cheap yen, converting to dollars, investing in risky assets. Now that is crumbling. Finance Minister Satsuki Katayama admitted to being “alarmed” by the unilateral decline. BOJ Governor Kazuo Ueda hints at upcoming rate hikes, which could drain capital from U.S. markets.

Canada Legalizes Stablecoins (But Not Like the U.S. Does )

The Canadian parliament approved the 2025 budgets with the country's first comprehensive stablecoin governance framework. It requires issuers:

• Maintain sufficient reserves
• Offer clear redemption policies
• Implement robust risk management systems

The Bank of Canada supervises with $10 million in financing for two years.

The key difference: Unlike U.S. proposals such as the GENIUS Act that seek to ban unlicensed stablecoins, Canada is creating a broad registration system. Analysts believe this accelerates regulatory clarity and drives institutional adoption.

United Kingdom Unraveled: Billions-Linked Money Laundering Network Tied to Russia

The National Crime Agency (NCA) of the United Kingdom revealed the dismantling of an international money laundering operation using crypto:

The TGR network:

• Controlled the Keremet Bank in Kyrgyzstan
• Led by George Rossi (Ukrainian national)
• Laundered money in 28 British cities and towns
• Facilitated payments to Promsvyazbank ( Russian bank supporting military operations )
• Linked to drug trafficking, arms smuggling, and evasion of sanctions

Operational Strike:

• £25 million ($33 million ) in cash and crypto seized
• 128 global arrests

Operation Destabilize underscores how crypto remains the backbone of cross-border money laundering. While regulators legalize stablecoins, criminal networks demonstrate the need for constant oversight.

The Positive Side: Bitcoin Gains Cultural Presence in Washington

In contrast to the volatility, PubKey ( themed around Bitcoin ) opened its second branch in Washington, D.C. The highlight was that Scott Bessent, Secretary of the Treasury, made an unexpected appearance. Owner Thomas Pacchia framed it this way: “Bitcoin deserves an embassy in Washington, D.C.”

PubKey opened in New York in 2022 and gained fame when Donald Trump visited in 2024, buying food with Bitcoin via Lightning Network.