Thailand: Own Wallet for Crypto Police in Planning

The anti-money laundering authority in Thailand is currently working on launching a new wallet. The government wants to have its own digital wallet to safely store Bitcoin and other crypto currencies associated with crimes.

The Thai crypto police are back on the news spy

Compared to other cryptopolice areas, the police area is relatively well regulated. The regulated climate was already growing there when distant neighbours were still ragingly swinging the regulation club. It was Thailand, for example, that considered regulating tokens when they were completely banned (or at least attempted) in China. However, the news spy was to take some time. Even in January, the former finance minister said that the news spy review was urgently needed. Then, in July 2018, some delicate advances were made. Thus the government began to issue its own law on crypto currencies instead of subjecting them to the lengthy process of laboriously classifying them under existing laws.

This was ultimately followed by the Thai supervisory authority SEC issuing seven approvals in August for companies that allow trading in crypto currencies. Thailand then tasted the regulatory soup with a circular letter to the financial institutions: Financial institutions should now have the green light for investments in the cryptosector. The relatively regulated situation then also made it possible for the country in Asia to now issue its own crypto currency.

It turns out that the situation in the country is more or less progressive. The legal framework is in place, but not too loose. The government has established clear guidelines as to what may and may not happen. So it should come as no surprise that the kingdom has its own crypto police. It is a division of the Anti-Money Laundering Authority, which now deals with crypto crimes.

The Crypto Police and their Bitcoin secret

Local media now report that the Anti-Money Laundering Authority has set up a special Bitcoin secret wallet for its activities according to onlinebetrug. With this, the authority wants to confiscate future coins from „illegal sources“ and store them (for itself). The legal foundations in Thailand are already relatively advanced. However, there is no legal basis for the confiscation of crypto assets. Even if the authorities have the authority to keep cyber criminals – a basis to confiscate crypto currencies and transfer them to the „anti-money laundering wallet“ does not exist yet. The much acclaimed anonymity of many coins often poses a problem for law enforcement authorities:

„A big problem with digital assets and similar evidence is the difficulty in finding out the identity of those who send them. When we present the evidence in court, it usually doesn’t convince the courts“.

stresses Chartpong Chirabandhu, Department of Special Litigation in Thailand, to the Thai magazine The Nation.

Technical details of the wallet are not yet known. However, with regard to the legal situation, new guidelines will soon be established again. If one considers the development to date and the progress of the regulatory authorities in Thailand, the legal basis for the confiscation of crypto currencies can be expected shortly.

New Coins on the Block – XTRABYTES (XBY)

XTRABYTES is a crypto currency that uses a new consensus mechanism to create a decentralized, scalable network. In addition, it should be able to resist attacks from quantum computers by using SHA-512 encryption. However, the past of the project leaves some critical questions unanswered.

As written some time ago, in the New-Coins-on-the-Block series we would like to introduce some rather unknown coins alternately. In the last issue we had a critical look at U.Cash. Today the rather unknown crypto currency XTRABYTES will be considered. This crypto currency exists since April last year and could show an increase of 4.000 % between December and January. Although the price has fallen dramatically again since then, at 0.16 Euro it is still 800 % above the price before the rally.

XTRABYTES – Three networks for one Bitcoin secret

XTRABYTES sees itself as a Bitcoin secret plafform with a modular structure and a new consensus mechanism like this: Bitcoin Secret Review 2018 » Full Scam Check The goal of XTRABYTES is the development of a completely decentralized platform. Existing blockchain-based systems are criticized for offering many possibilities for centralization. Centralization of the developers, within the framework of consensus mechanisms or with regard to the centralization of ownership are mentioned here as examples.

Another focus will be on abolishing proof of work. The basis for the criticism of proof of work is the high demand for energy. To achieve this, a new consensus mechanism called Proof of Signature or PoSig is introduced. In this, real and virtual node networks are compared with each other. These networks are the STATIC network, the VITALS network and the PULSE network:

STATIC nodes (Services Transactions and Trusted in Control) are responsible for the security, consensus and governance of the XTRABYTES block chain. They must sign each block. A consensus, i.e. proof of signature, is reached when all STATIC nodes have provided blocks with the same signatures. If one of the STATIC nodes deviates from the statements of the other nodes, it is put on a blacklist by the other nodes if it does not want to correct its block. Since they are the backbone of the entire network, they are remunerated by payment of the fees incurred in the system. A distinction is made between different levels, each of which has a different share of the fees.
VITALS stands for Virtual Information Transmissions aligning STATICS. It is an internal network of virtual nodes, which connects the STATIC nodes and is a kind of VPN access to the STATIC network. It is the network that enables undisturbed interaction of the STATIC nodes.

The cryptosoft network (Ping Unified Ledger Synchronization Equalizer) is a kind of signal generator:

After an initiated transaction, a cryptosoft signal is sent to all nodes so that they know that there will soon be a transaction to process according to onlinebetrug. Due to the high processing speed of the transactions, synchronization errors of individual STATIC nodes can occur. This is detected and announced by PULSE. In this sense PULSE is a kind of governance for the VITALS network and ensures the communication between the nodes.

In summary, STATIC Nodes actually create and verify the new blocks, VITALS Nodes maintain the consensus and the Pulse network is the basic communication layer.

Another special feature of the network is the use of SHA-512 encryption, which is expected to provide encryption that cannot be cracked by quantum computers for the foreseeable future. Here the modular structure of XTRABYTES should also be used to be able to update the encryption mechanism quickly in case of doubt.

University of Qatar: Bitcoin’s environmental impact calls for government intervention

Discussions about the environmental impact and sustainability of Bitcoin have been going on for a long time. A scientific article by the University of Qatar has now come to the conclusion that government intervention will be necessary in the future due to high energy consumption. Thus appropriate taxes could lower its demand. In addition, incentives for alternative blockchain technologies and new consensus modes are needed. While these are being used more and more, the Association of Research Centres for Energy Economics emphasises that the energy problem of the blockchain is „solvable“.

The growing energy demand in the cryptosector endangers the environment and the sustainable survival on earth. This is the basis on which Jon Truby, scientist at Qatar University, argues in his recent research.

His cryptosoft thesis:

By consuming huge amounts of energy every year, Bitcoin undermines global efforts against climate change and Parisian climate tobacco. This overshadows the benefits of the cryptosoft blockchain.

„The huge trust benefits for transaction security are eclipsed by Bitcoin’s deliberate resource-intensive design. These verification processes now threaten the climate on which we depend for our survival.“

Crypto trader response: Limiting demand

State intervention and fiscal compensation are needed to promote crypto trader alternatives and reduce demand for Bitcoin. „The applications of the technology (such as digital currencies or smart contracts) can be targeted to limit the crypto trader demand for the development and use of particularly energy-intensive technologies and to promote sustainable alternatives, the jurist is sure.

According to Truby, viable legal options represent internationally coordinated taxes on prospecting processes, transkations or the ownership of Bitcoin.

In March, the G20 ministers had already decided to introduce common tax standards. Their focus, however, is on avoiding money laundering and the criminal use of crypto currencies – not their possession and use per se.

This means that there are already links in the tax handling of Bitcoin. However, it is questionable whether environmentally-centred initiatives such as those brought into play by Truby will soon be implemented, especially in light of the hesitant climate protection policy.