Crypto News: Bitcoin Falls as Yen Weakens As Canada Advances Stablecoin Rules

Global markets faced renewed turbulence on Friday as Bitcoin extended its slump, the Japanese yen hit fresh multi-month lows, and regulators in Canada and the United Kingdom unveiled major policy moves involving stablecoins and crypto-based money laundering.Japan’s $135B Stimulus Shakes Markets, Sends Yen to 10-Month LowJapan approved a $135 billion (¥21.3 trillion) stimulus package aimed at subsidizing electricity and gas costs and easing household inflation pressures. The government expects the measures to reduce inflation by 0.7 percentage points from February through April.But global markets reacted nervously.The yen weakened sharply, hitting its lowest level in 10 months against the U.S. dollar.Japan’s 10-year government bond yield rose to 1.84%, the highest since the 2008 global financial crisis.Traders fear the spending package will require major bond issuance, potentially triggering Bank of Japan (BOJ) rate hikes.Finance Minister Satsuki Katayama said authorities were “alarmed” by the yen’s one-sided slide. BOJ Governor Kazuo Ueda added the bank will soon discuss the “feasibility and timing” of a rate hike — a move that could spark capital outflows from U.S. markets.Bitcoin Drops as Yen Carry Trade Loses Its AppealBitcoin (BTC) fell to $84,191, extending a multi-week downtrend.Historically, a weak yen created profitable carry trade flows into Bitcoin: borrow yen cheaply, convert to dollars, and allocate into risk assets.Now, rising yields and the BOJ’s shifting stance are causing traders to unwind these strategies.A Lighter Moment: Bitcoin Bar PubKey Opens in Washington, D.C.Despite the market volatility, the mood brightened Thursday when PubKey, a Bitcoin-themed bar, opened its second location in Washington, D.C.The launch drew attention after Treasury Secretary Scott Bessent made an unexpected appearance — a gesture some viewed as symbolic support for Bitcoin’s cultural rise.PubKey first opened in New York in 2022 and gained national attention after Donald Trump visited in 2024, buying food with Bitcoin over the Lightning Network.“Bitcoin deserves an embassy in Washington, D.C.,” owner Thomas Pacchia said.Canada Approves Budget With New Stablecoin RegulationsCanada’s parliament approved Prime Minister Mark Carney’s 2025 budget, which includes the country’s first comprehensive stablecoin governance framework.The rules require issuers to:Hold sufficient reservesOffer clear redemption policiesImplement robust risk-management systemsThe Bank of Canada will oversee the framework with $10 million in funding allocated over two years.Unlike U.S. proposals such as the GENIUS Act, Canada will not ban unlicensed stablecoin issuance outright — instead, it introduces a broad registration system to regulate issuers.Analysts say the move significantly advances Canada’s regulatory clarity and may accelerate institutional stablecoin adoption.UK Uncovers Billion-Dollar Crypto Laundering Operation Linked to RussiaThe UK’s National Crime Agency (NCA) revealed Friday that it has dismantled part of a major international crypto-based money-laundering network tied to drug trafficking, weapons smuggling, and sanctions evasion.Key findings:A small bank in Kyrgyzstan, Keremet Bank, is allegedly controlled by money launderers.The bank was acquired by Altair Holding, tied to Ukrainian national George Rossi, head of the laundering network TGR.TGR used crypto to clean illicit money across 28 cities and towns in the UK.The network facilitated payments for Promsvyazbank, a Russian state-owned bank supporting Russia’s military-industrial operations.Assets Seized£25 million ($33 million) seized in cash and crypto128 arrests made worldwideThe investigation, part of Operation Destabilise, highlights how crypto remains central to complex cross-border laundering schemes.