India’s Top Court to Refuse to Lift Crypto Ban

Looks like Reserve Bank of India’s cryptocurrency ban will remain
03 July 2018   804

The Supreme Court of India refused on Tuesday to remove the restrictions imposed by the central bank of the country on the cryptocurrency activity of local financial companies. This is reported by Quatz India.

On April 5, the Reserve Bank of India sent a notice to all financial institutions under its control, which officially prohibited them from providing services to companies operating in the field of cryptocurrency. In addition, the banks were instructed not to carry out transactions that their customers can use to purchase cryptocurrency. Officially, the regulation of the regulator takes effect on July 5.

The decision tried to challenge a number of cryptocurrency companies, which called it "arbitrary, unjust and unconstitutional." The Supreme Court responded to the stormy reaction of the public and promised to consider the petitions received, whose signatories demanded that the decision of the Central Bank be canceled, but refused to accept new applications.

However, based on the results of today's hearing, the court refused to issue a temporary restriction on the decision of the RBI.

As one of the legal companies representing the local stock exchange cryptocurrency said, the participants in the process asked to postpone the deadline for the decision to enter into force for another month. "However, now that the ban was approved, the banking channels for exchanges and their users were completely cut," the partner of the law firm told Quartz.

Nevertheless, representatives of the local crypto-currency industry do not lose hope. Last week, the secretary of the Ministry of Economy of India confirmed that the authorities are at the final stage of developing legislation to regulate the sphere of crypto-currencies. It is expected that it will be submitted within two weeks.

We have prepared a draft (on virtual currencies) that entails what parts of this businesses should be banned and what should be preserved. This should be discussed by the first week of July and we should wrap this up within in the first fortnight of July.
 

Subhash Chandra Garg

Secretary, India department of economic affairs

The next hearing, during which representatives of the cryptocurrency industry will try to challenge the decision of the Reserve Bank of India, is scheduled for July 20.

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   964

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a “malicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.