Russia will legitimize ICO and cryptocurrency

President Vladimir Putin gave instructions to the government to make amendments to legislation that legitimize cryptocurrency
24 October 2017   497

The statements concerning future policy towards cryptocurrency in Russia appeared on October 21 on the official website of Kremlin.

The orders made by President of Russia Vladimir Putin are concerned with new legal regulations which will be applied to cryptocurrency in Russia. The instructions aim at establishing a plan to use cryptocurrency technology to create a unitary payment space with the Eurasian Economic Union, and making a special system for cryptocurrency miners to register and pay taxes on a profit they make.

Moreover, the instructions mention creation so-called "sandbox", which will allow companies to test products under limited conditions.

The Government of the Russian Federation, in conjunction with the Bank of Russia, shall ensure that changes are made to the legislation of the Russian Federation providing for...[the] determination of the status of digital technologies used in the financial sphere and their concepts (including such as "technology of distributed registries", "digital letters of credit", "digital mortgage", "crypto-currency", "token", "smart contract") based on the obligation of the ruble as the only legal tender in the Russian Federation.
 

Official list of instructions on the use of digital technologies in the financial area

All the instructions should be put through by the government and Central Bank by July 1, 2018.

Bank of China Filed a Patent to Scale Blockchain Systems

Bank of China has filed a patent application for a process able to scale blockchain systems  
23 February 2018   102

According to a document released by China's State Intellectual Property Office (SIPO) on February 23, the application was invented by Zhao Shuxiang and first submitted on September 28 last year.

The application states that instead of letting a new block store transactions from its previous one, a data compressing system could be used to pack transactions from multiple blocks into what the patent calls a "data block."

For example, when the system receives a request to compress transactions from block 1 to 1,000, it causes a new data block to be formed and temporarily hosted on a different storage system. Then, the system will run the packed data through a hash function with a hash value. After that, the compression system will attach labels in order to identify blocks on the blockchain.

With the use of the described method, the patent claims a reduction in the amount of the data stored in new blocks as transactions mount in a blockchain while ensuring that data from all previous transactions will still be tamper-proof and traceable.

At the moment, the patent in the review process.