Russian Bank to Trade Crypto Overseas Despite Regulations

The state-owned russian bank Sberbank is going to sell well-known cryptocurrencies to customers abroad
31 January 2018   111

Sberbank is the largest state-owned bank in Russia and third largest in Europe with the major part of Sberbank subsidiaries (52%) owned by Russian Government. Russian laws prohibit trading cryptocurrencies, and selling crypto within the country is illegal, but Sberbank does not want to lose the possibility to provide their services for clients.

Andrey Shemetov, Sberbank’s Head of Global Markets, claimed that the bank is developing a strategy for trading cryptocurrencies overseas in order to avoid violating domestic rules. Sberbank aspires to satisfy the interests of clients that is why it needs to gain access to a wide range of products.

Anton Siluanov, the Minister of Finance of Russia, published draft law on the regulation of digital assets in Russia that is expected come into force in September of 2018.

The only solution found for crypto trading is Swiss branch of Sberbank called AG. Moreover, Sberbank’s Head of Global Markets said that Swiss colleagues were setting up an infrastructure for trading cryptocurrency. As a first step, the product will be available only to legal entities.

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   95

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.