Singapore Prime Minister Against Banning Cryptocurrency

There is no strong case to ban cryptocurrency trading here, said Deputy Prime Minister of Singapore
06 February 2018   196

Singapore’s central bank has been studying the potential risks posed by cryptocurrencies, but there is as yet no strong case to ban trading of the digital coins in the city-state, Deputy Prime Minister Tharman Shanmugaratnam said.

Cryptocurrencies are an experiment. The number and different forms of cryptocurrencies are growing internationally. It is too early to say if they will succeed. If some do succeed, their full implications will also not be known for some time.

 

Tharman Shanmugaratnam

Deputy Prime Minister of Singapore

Shanmugaratnam said that they will impose anti-money laundering and the financing of terrorism (AML/CFT) requirements on the intermediaries that buy, sell or exchange virtual currencies. The scheme was first set out last year in the public consultation for the proposed Payment Services Bill. He added that their enforcement agencies are always on the lookout should there be illegal activities on cryptocurrency trading.  

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   109

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.