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  • Writer's pictureAnthony Holman

Stories of the day.


1. The US Federal Reserve (FED) is raising interest rates by 0.75 percentage

points.


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

of 9.1%.


The FED indicated that it aims to achieve inflation at the rate of 2 percent over the

longer run.



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

U.S. government.


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

contract:


“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

identify targets.”


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

months”.



4. A European banking regulator sees 'major concern' when it comes to

handling crypto.


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

cryptocurrencies.


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.




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