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According to ChainCatcher, there is a significant shift in global monetary policy expectations, with traders increasingly betting that central banks will slow down or end their monetary easing cycles. Jim Reid, Global Head of Macro Research at Deutsche Bank, noted that markets in many countries are beginning to price the next interest rate change as a hike. Statements from Schnabel have fueled market speculation about a potential rate increase by the European Central Bank in 2026, which could lead to higher bond yields. Although government bond yields in the U.S., Europe, the UK, and Japan saw a slight decline on Tuesday, they have risen sharply overall this month.

According to ChainCatcher, German automaker BMW AG has adopted a blockchain-based system to automate certain foreign exchange transactions. This move is part of a broader trend among companies seeking to leverage the technology behind cryptocurrencies to expedite and simplify multi-billion-dollar cross-border payment processes.

BMW is utilizing JPMorgan Chase & Co.'s Kinexys platform. The system automatically transfers euros from BMW's Frankfurt account when the balance in its New York dollar account falls below a specified threshold.

According to PANews, the Hong Kong Securities and Futures Commission (SFC) has identified 9M AI Group Inc., also known as 9M AI, as a 'suspicious virtual asset trading platform.' The company is reportedly operating without a license and is suspected of engaging in unlicensed activities while marketing to investors in Hong Kong. The SFC's website lists 9M AI Group Inc. as not having the necessary regulatory approval to conduct business in the region.

According to PANews, EU Financial Services Commissioner Maria Luis Albuquerque stated on Tuesday that the European Union intends to implement its comprehensive capital market reform package by 2027, marking the first time a timeline has been provided for the initiative. Albuquerque emphasized the importance of swiftly discussing and approving the proposal, ideally aiming for implementation by 2027.

Last week, the European Commission announced plans to enhance the supervisory and enforcement powers of the European Securities and Markets Authority (ESMA) as part of efforts to integrate fragmented capital markets. The proposal requires approval from the European Parliament and the EU Council, with some member states expressing strong opposition. Centralizing regulatory authority would bring key clearinghouses, central securities depositories, and trading platforms under ESMA's jurisdiction, including cryptocurrency companies.

Additionally, the EU has pledged to conduct a comprehensive review of banking regulatory rules by the end of next year. The European Central Bank is set to unveil proposals for simplified bank regulation on Thursday, which will be incorporated into the EU Commission's broader reform efforts.

According to BlockBeats, the Singapore Exchange (SGX) has reported that its Bitcoin and Ethereum perpetual futures have achieved a cumulative trading volume of $250 million since their launch two weeks ago. SGX President Michael Syn noted that these products are drawing new liquidity rather than diverting funds from other exchanges. Institutional investors are primarily engaging in spot-futures arbitrage trading with these regulated contracts, rather than simply taking long positions.

Key TakeawaysJapan crypto tax slashed from 55% to a flat 20%Major cryptocurrencies reclassified as financial instruments under stricter lawNew rules mandate investor protection funds for all exchanges Japan's cabinet has approved sweeping new crypto rules, reclassifying digital assets as financial products and cutting the capital gains tax to 20%. This historic shift aims to reclaim the country's status as a leading crypto hub.Regulatory Reclassification and Tax ReformThe cabinet approved plans to move Bitcoin and other cryptocurrencies from the Payment Services Act to the Financial Instruments and Exchange Act (FIEA). This grants them the same status as stocks and bonds. Concurrently, the crippling 55% tax rate on crypto profits will be reduced to a flat 20%. The change aligns crypto with traditional investments and addresses a major barrier to adoption. Over 22% of former investors cited tax complexity as their main reason for exiting.Market Context and Investor ImpactThis reform directly tackles a crisis of confidence that has plagued Japan's market. Current digital asset investors identified tax complexity (60%) and volatility (61.4%) as top challenges. The high rate and arduous reporting requirements created a significant administrative burden. The new 20% flat tax and streamlined reporting remove a critical friction point. This is expected to improve market liquidity and buying pressure long-term.Enhanced Protections and ComplianceUnder the FIEA, 105 approved cryptocurrencies will face stricter rules. Issuers must provide full disclosure on technology and risks. Exchanges must now hold liability reserves to cover losses from events like hacks. These investor protection measures aim to build trust and market stability. However, they may raise compliance costs for smaller firms.Market OutlookThe legislative package will be submitted for a full review, targeting implementation in fiscal year 2026. Analysts see this as a bullish structural shift for Japan's crypto market. The alignment with traditional finance could unlock new institutional interest. The long-term wealth accumulation goal of 62.7% of Japanese investors may now be more achievable. 

According to Odaily, Tether has announced that its USDT token has been recognized as an accepted fiat reference token (AFRT) by the Abu Dhabi Global Market (ADGM). This recognition allows authorized entities licensed by the ADGM Financial Services Regulatory Authority (FSRA) to offer regulated activities involving USDT on various blockchains, including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON.

This development builds on ADGM's previous recognition of USDT on Ethereum, Solana, and Avalanche, further expanding the application scope and network coverage of USDT within ADGM's regulated digital asset framework. Tether CEO Paolo Ardoino emphasized that this move highlights Tether's commitment to advancing global financial inclusion and innovation, while reinforcing Abu Dhabi's position as a global hub for compliant digital finance.

According to ChainCatcher, White House National Economic Council Director Kevin Hassett has criticized the idea of the Federal Reserve prematurely announcing its interest rate path for the next six months, calling it irresponsible. Hassett emphasized that monetary policy should be adjusted flexibly based on economic data. He praised current Chairman Jerome Powell for effectively coordinating internal opinions within the Federal Open Market Committee (FOMC) before meetings and suggested that Powell might agree with the perspective of continuing to lower interest rates.

According to Foresight News, Bloomberg analyst Eric Balchunas reported that BlackRock has submitted a formal prospectus (Form S-1) to the U.S. Securities and Exchange Commission (SEC) for the iShares Staked Ethereum Trust ETF. This marks BlackRock's fourth crypto-related ETF product. Previously, the company applied for spot Bitcoin, spot Ethereum, and a 'Bitcoin Yield' ETF.

According to Foresight News, the search volume for the term 'Bitcoin bear market' on Google has reached its highest level in nearly five years.

According to Odaily, Nomura Securities has adjusted its outlook on the Federal Reserve's December policy meeting, now anticipating a 25 basis point rate cut. This marks a shift from its previous expectation that rates would remain unchanged. Despite this revision, Nomura acknowledges significant uncertainty surrounding the December decision. The change in forecast is attributed to the presence of sufficient dovish signals, which suggest that further 'risk management-style rate cuts' are justified for the Fed's centrists. Nomura anticipates opposition from four hawkish members against the rate cut, while Milan is expected to adopt a dovish stance, advocating for a 50 basis point reduction. Looking ahead, Nomura continues to forecast that under the leadership of a new Federal Reserve Chair, the Fed will implement 25 basis point rate cuts in June and September of 2026.

According to ChainCatcher, SolanaFloor has reported that Circle has minted approximately 2.25 billion USDC stablecoins on the Solana blockchain over the past seven days.

According to BlockBeats, the U.S. dollar weakened as markets await the upcoming Federal Reserve policy decision, with widespread expectations of another interest rate cut. Analysts from Deutsche Bank suggest that the Federal Reserve may announce its third and final 25 basis point rate cut for 2025 on Wednesday, though the decision is not expected to be unanimous.

Analysts noted that Federal Reserve Chair Jerome Powell's press conference and accompanying statement will be crucial. "We anticipate that Powell will emphasize the high threshold for further rate cuts in early 2026, signaling a short-term pause in rate reductions."

According to Foresight News, the Central Bank of Argentina (BCRA) is contemplating lifting its longstanding ban on traditional financial institutions offering cryptocurrency trading and custody services to clients. This potential policy shift would allow banks to officially enter the crypto market under a stringent new framework. Currently, BCRA regulations prohibit banks from providing or facilitating crypto transactions, a measure primarily aimed at mitigating risks and curbing the use of unregulated entities.

According to BlockBeats, there is speculation that the Bank of Japan may raise interest rates this month, yet market participants continue to bet on the yen's weakness. Traders from Bank of America, Nomura Holdings, and RBC Capital Markets indicate that investor positions reflect this sentiment. Citigroup's "pain index" for the yen remains in negative territory, highlighting ongoing negative sentiment towards the currency. Despite Bank of Japan Governor Kazuo Ueda hinting at a possible rate hike and reports suggesting the central bank is prepared to act if the economy or financial markets remain stable, investors maintain a bearish outlook on the yen. This is attributed to the expectation that Japan's yields will remain significantly lower than those in the U.S., favoring the dollar.

Ivan Stamenkovic, Head of G-10 Currency Trading for Asia-Pacific at Bank of America, stated, "Positions still favor a rise in USD/JPY by year-end unless the Bank of Japan delivers a genuine surprise." He added that Ueda's hawkish remarks have sparked discussions about the currency pair, but there has been no substantial shift in market sentiment.