Stories of the day.
1. The US Federal Reserve (FED) is raising interest rates by 0.75 percentage
The FED explains in Wednesday's official press release:
“Inflation remains elevated, reflecting supply and demand imbalances related to
the pandemic, higher food and energy prices, and broader price pressures.
Russia's war against Ukraine is causing tremendous human and economic
hardship… creating additional upward pressure on inflation.”
The announcement marks the second consecutive month in which the FED hiked
interest rates by three-quarters of a percentage point.
The latest decision is part of the FEDs ongoing effort to curb rising inflation - after July’s
Consumer Price Index (CPI) report showed that inflation had reached a 4-decade high
The FED indicated that it aims to achieve inflation at the rate of 2 percent over the
2. Crypto lobbying groups in Japan call for tax cuts to attract talent.
According to an internal memo obtained by Bloomberg, the lobbying groups will ask the
government to make it cheaper for companies to issue and hold crypto tokens.
The report states that high taxes and tight regulations are pushing crypto companies out
of Japan, many of which relocate to Singapore.
One of those companies was Stake Technologies’ and CEO Sota Watanabe, who told
Bloomberg in an interview:
“Japan is an impossible place to do business. The global battle for a Web 3.0
hegemony is under way, and yet, Japan isn’t even at the start line.”
The lobbying groups will ask the Japanese authorities to set a uniform 20% income tax
on crypto earnings. Rates can currently reach as high as 55%, according to the memo.
A spokesman for the organizations said that a proposal could be submitted to the
government as early as this week.
3. Crypto-investigations firm Chainalysis is spinning up “Government
Solutions” for US agencies.
Chainalysis told CoinDesk in an interview:
“America’s hodgepodge of state, local and federal agencies together buy more
Chainalysis software than anyone else”.
According to reports, Chainalysis made more than $10 million in five years from the
In return, Chainalysis provides government agencies with tools that help track and
analyze crypto payments.
The Drug Enforcement Administration (DEA) explained in documents from a 2019
“Chainalysis has charting capabilities that have been used to show investigators
how bitcoin transactions are conducted and how they can be used as a tool to
The new government-facing subsidiary will start with 90 staff investigators.
Erin Plante, senior director of investigations at Chainalysis commented:
“I wouldn't be surprised if we see double-the-team growth in the next six to 12
4. A European banking regulator sees 'major concern' when it comes to
The chair of the European Banking Authority (EBA), José Manuel Campa, expressed
“major concern” when it comes to hiring and retaining staff that is knowledgeable about
Campa noted that many crypto experts would be drawn to higher paying positions, and
that the EBA would struggle keeping pace with the “very dynamic” crypto industry.