China Ban on ICO is Temporary - Licensing to be Introduced
During an interview with state-owned national television network CCTV-13, Hu Bing, a researcher at the Institute of Finance and Banking, claimed that the government’s ban on initial coin offerings (ICOs) is only temporary.
In his interview with CCTV, Bing explained that the suspension on ICOs and the government’s declaration of ICOs as an illegal fundraising method are only temporary until local financial regulators introduce necessary regulatory frameworks and policies for both ICO investors and projects.
More importantly, Bing emphasized that the Chinese cryptocurrency community must understand that the government has not “forbidden” ICOs but instead “paused” them, demonstrating the government’s intention to resume ICOs in the near future.
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Scaling Lightning - How Revive Could Boost Bitcoin's Scaling Plan
Computer scientists from the Swiss university ETH Zürich have found a way to make off-blockchain payment networks even more scalable.
To get around this, cryptocurrency protocols have developed payment channel networks that push transactions off-blockchain, such as bitcoin's Lightning Network, first proposed in 2015. But researchers Rami Khalil and Arthur Gervais believe payment systems like the Lightning Network don't go far enough, and they've proposed the Revive payment channel model, an idea that would enable longer-lasting payment channels that interact even less with the blockchain. The paper explains:
"Except in the case of disputes (similar to conventional payment channels), our solution does not require on-chain transactions and therefore increases the scalability of existing blockchains."
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Israel’s Bank Partners Microsoft to Offer Guarantees on a Blockchain
Microsoft is partnering with Israel’s Bank Hapoalim on a blockchain-based platform to support digital bank guarantees for customers. The project will simplify and hasten the process of signing up guarantors.
Arik Pinto, Bank Hapoalim’s CEO, said in a prepared statement that bank customers will receive security documents in an automated, digital and secure manner and in a short process. The use of blockchain technology will “significantly improve” the customer’s level of trust in the banking system, as well as the customer experience, he said.
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Crypto Valley Association Redacts ICO Code of Conduct for Switzerland
Switzerland’s non-profit Crypto Valley Association (CVA) is developing an 'ICO Code of Conduct’ to help with future regulatory hurdles. ICOs, which received a ban this week from China as well as warnings from Korea, continue to thrive in jurisdictions where regulations are yet to catch up with the market.
In creating its Code, the CVA hopes to galvanize the local industry with guidelines “expected to bring clarity and confidence” to the asset class. Chairman Oliver Bussmann commented in a press release Thursday:
“The rapid development of token launches has raised concerns around stability and security, and as a leader in this field, it’s our responsibility to support the industry. We believe that token sales represent an exciting, sound and innovative approach to raising investment capital. Therefore, we believe Switzerland should support this trend by developing a clear, comprehensible, yet flexible regulation that clarifies the legal status of ICOs and the tokens generated.”
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