Headlines
▌Binance Released an Announcement to Support the Merger of Ethereum, and Will Suspend the Deposit and Withdrawal of ETH and ERC-20 Tokens
Binance issued an announcement on supporting the Ethereum merger plan, saying that the upgrade and merger of Ethereum Bellatrix is expected to be carried out at 19:34:47 on September 6th and 8:30 on September 15th, Beijing time. The deposit and withdrawal of ETH and ERC-20 network tokens will be suspended during the security period. In addition, if no new tokens are generated after the hard fork, Binance will resume the deposit and withdrawal of ETH and ERC-20 network tokens as soon as possible, and will make a separate announcement; if two competing blocks are generated after the hard fork chain and generate a new token, the "ETH" code will be used in the Ethereum PoS chain, and Binance will also take a snapshot of the ETH holdings before the implementation layer upgrade (expected at the Ethereum mainnet block height 15540293 or Beijing Time at 8:30 on September 15th), distribute the forked tokens to users from the chain with less work done at a ratio of 1:1, and will support the withdrawal business of the forked tokens, the details of the distribution will be made on a separate announcement.
Cryptocurrency
▌ Data: Nearly 75% of Suspected Illegal Foreign Exchange Transactions in South Korea Are Related to Cryptocurrencies
Illegal foreign exchange transactions in South Korea are increasingly dominated by exchanges linked to cryptocurrencies. At present, nearly 75% of suspected illegal foreign exchange transactions in South Korea are related to cryptocurrencies, including this year involving about 1.1 billion U.S. dollars. As previously reported, South Korean regulators said abnormal overseas remittance transactions through crypto exchanges totalled $3.37 billion.
▌ Japan Officially Plans to Reform the Tax System to Prevent Crypto Startups from Going Overseas
Japan’s Financial Services Agency and the Ministry of Economy, Trade and Industry decided to discuss and review the collection method of corporate tax in encrypted assets (virtual currencies) issued by companies in the tax reform in fiscal year 2023, in order to facilitate the development of start-ups. In the new mechanism discussed by the Financial Services Agency, the cryptocurrencies issued and held by companies may not be subject to taxation at the end of the period, and will be taxed when profits are generated from sales. The move is aimed at reducing the burden on startups and preventing promising startups from relocating overseas.
▌Former Finance Director at Twitter Joins Immutable X as CFO
David Bicknell, former Finance Director at Facebook App and Twitter, and current Senior Vice President of Finance at AirWallex, has joined Immutable X as Chief Financial Officer (CFO) and will be responsible for Immutable’s asset management, balancing risks, and future acquisitions.
Key Economic Events
▌Goldman Sachs' latest outlook on the US economy: 30% chance of falling into recession next year
Goldman Sachs expects U.S. GDP to shrink by 0.1% year-on-year in the fourth quarter of 2022, mainly due to the huge fiscal drag and the negative impact of tightening financial conditions. In addition, the probability of a recession in the U.S. is projected to be 30% next year and about 50% in the next two years, though any recession is likely to be mild. Core PCE is forecast to fall to 4.3% by the end of 2022, but supply chain disruptions, faster wage growth, and stronger housing spending inflation are likely to keep inflation high for a long time. The unemployment rate is expected to rise to 3.6% by the end of this year, 3.8% by the end of 2023 and 4.0% by the end of 2024.