Blockchain technology and smart contracts have emerged as revolutionary tools with the potential to transform various industries by providing decentralized, transparent, and secure methods for recording transactions and automating contractual agreements. However, the adoption of these technologies also raises significant legal and regulatory challenges. This paper critically examines the legal implications and challenges associated with blockchain technology and smart contracts. Through an analysis of existing legal frameworks, case studies, and regulatory approaches across different jurisdictions, this study identifies key issues such as enforceability, jurisdiction, data privacy, and security. The paper also explores potential solutions and recommendations for addressing these challenges, aiming to contribute to the development of a robust legal framework that supports the responsible use of blockchain technology and smart contracts.
Over the years, a number of applications of blockchain and smart contracts have been proposed in a variety of scenarios and sectors. Such applications use the blockchain to record different types of assets, from financial to public (e.g. vehicle registrations), semi-public (e.g. university degrees) and private (e.g. wills), as well as intangible (e.g. coupons) and tangibles (e.g. e-hotel). room keys) active. In the following subsections, an overview of the developed/designed applications is reported, grouping them according to their sector and context. The objective here is to provide the reader with a list of existing, to be developed, or potential applications of blockchain and smart contracts to help them understand the huge impact this technology could have on society.
Objective : to identify the prospects of international trade in the light of synchronizing Incoterms with smart contracts. Methods: the study is based on the general scientific methods of analysis, synthesis, comparison, and formal-legal method necessary to analyze the provisions of Incoterms. Results: the authors analyzed the provisions of Incoterms and technological innovations in commercial law; showed the connection between the practice of commercial law and technological development due to the inclusion of contractual terms in blockchain. It is noted that the integration of blockchain technology with smart contracts has led to a variety of automated business transactions and the creation of a platform for synthetic assets trading. The authors describe the possibilities of secure and easy transactions in international trade using blockchain. Despite the uniqueness of this technology, its different types are distinguished, namely: public, private, hybrid, and consortium blockchain. It is substantiated that the synchronization of Incoterms with smart contracts can improve the prospects of international trade (especially export-import contracts). It is emphasized that smart contracts based on blockchain can revolutionize the application of Incoterms, consequently increasing the efficiency of transactions between parties to export-import relationships. One of the fundamental changes that smart contracts will bring to these trade transactions is the reduction of errors and misinterpretations of Incoterms. The authors use specific cases to demonstrate disputes arising at the stages of transaction conclusion and execution, which could have been avoided using modern technologies. Scientific novelty : The paper shows the phenomenon of synchronizing Incoterms with blockchain and how it can affect the form of contracts and facilitate their smooth execution. The proposed approach to analyzing the phenomenon takes into account the revolutionary innovations in crossborder trade, which are compared with the usual ways of applying Incoterms in traditional international trade contracts. Practical significance : the research provides suggestions and recommendations for further development of innovations in the field of smart contracts, especially export-import trade contracts on a global scale.
Данная статья посвящена вопросам современной технологии смарт-контрактов. Дана оценка влияния смарт-контрактов на бизнес-среду. Проанализирована популярная блокчейн- платформа для разработки и внедрения смарт-контрактов. Рассмотрены основные возможности и особенности смарт-контрактов, успешно проведен анализ технологии, предложены варианты по решению проблем после анализа. Входе исследования авторы приходят к выводу о том, что, развивая смарт-контракты и применяя их в практике, будут снижаться затраты, повышаться эффективность, увеличиваться прозрачность в управлении, что указывает на возможность преобразования деловой России. Важно подчеркнуть, что для реализации этого потенциала, необходимо пройти путь, соединяя нормативно-правовую базу, технологические возможности и преодолевая социальные барьеры, и поможет создать новые возможности для участия в экономической деятельности. This article is devoted to the issues of modern smart contract technology. An assessment of the impact of smart contracts on the business environment is given. The popular blockchain platform for the development and implementation of smart contracts is analyzed. The main features and features of smart contracts are considered, the technology has been successfully analyzed, and options for solving problems after analysis are proposed. Based on the study, the authors conclude that by developing smart contracts and applying them in practice, costs will decrease, efficiency will increase, and transparency in management will increase, which indicates the possibility of transforming business Russia. It is important to emphasize that in order to realize this potential, it is necessary to go through a path connecting the regulatory framework, technological capabilities and overcoming social barriers, and will help create new opportunities for participation in economic activities.
This study explores the legal frameworks governing digital transactions, with a specific focus on the transformative impact of blockchain technology. The primary aim is to elucidate the complexities and challenges posed by blockchain while examining the diverse regulatory approaches adopted internationally. Through a comprehensive literature review and comparative analysis, the research addresses key aspects such as the conceptual framework of digital transactions, the unique characteristics of blockchain, and the regulatory strategies implemented across different jurisdictions. The findings reveal that blockchain technology, characterized by its decentralized, immutable, and transparent nature, significantly disrupts traditional regulatory models. Identified challenges include jurisdictional ambiguities, enforcement difficulties, and privacy concerns. The comparative analysis shows divergent regulatory approaches: supportive frameworks in Japan and Switzerland contrast sharply with restrictive measures in China, highlighting the necessity for international cooperation and harmonization of regulations. The study concludes that effective regulation of blockchain technology requires innovative and flexible legal frameworks capable of adapting to rapid technological advancements. Policymakers must balance fostering innovation and protecting public interests, emphasizing the need for privacy-preserving technologies and international standards. Recommendations include developing global regulatory standards, enhancing privacy measures, and creating legal frameworks that accommodate the decentralized nature of blockchain systems. This research provides valuable insights for regulators, policymakers, and stakeholders, offering a pathway towards a secure, transparent, and innovative digital economy. Continuous adaptation and international collaboration are imperative to address emerging challenges and fully harness the potential of blockchain technology. The study advocates for proactive engagement and cooperation among nations to create a cohesive regulatory environment that promotes innovation while safeguarding public interests, enabling the global community to navigate the complexities of blockchain technology and unlock its full potential for economic and social advancement. Keywords: Blockchain Technology, Digital Transactions, Legal Frameworks, Regulatory Challenges, International Cooperation, Privacy Concerns.
The advent of blockchain technology and its adoption across various sectors have raised critical discussions about the need for regulatory mechanisms to ensure consumer protection, maintain financial stability, and address privacy concerns without compromising the foundational principles of decentralization and immutability inherent in blockchain platforms. We examine the existing mechanisms for smart contract termination across several major blockchain platforms, including Ethereum, BNB Smart Chain, Cardano, Solana, Hyperledger Fabric, Corda, IOTA, Apotos, and Sui. We assess the compatibility of these mechanisms with the requirements of the EU Data Act, focusing on aspects such as consumer protection, error correction, and regulatory compliance. Our analysis reveals a diverse landscape of approaches, from immutable smart contracts with built-in termination conditions to upgradable smart contracts that allow for post-deployment modifications. We discuss the challenges associated with implementing the so-called smart contract "kill switches," such as the balance between enabling regulatory compliance and preserving the decentralized ethos, the technical feasibility of such mechanisms, and the implications for security and trust in the ecosystem.
Smart contracts are autonomous and immutable pieces of code that are deployed on blockchain networks and run by miners. They were first introduced by Ethereum in 2014 and have since been used for various applications such as security tokens, voting, gambling, non-fungible tokens, self-sovereign identities, stock taking, decentralized finances, decentralized exchanges, and atomic swaps. Since smart contracts are immutable, their bugs cannot be fixed, which may lead to significant monetary losses. While many researchers have focused on testing smart contracts, our recent work has highlighted a gap between test adequacy and test data generation, despite numerous efforts in both fields. Our framework, Griffin, tackles this deficiency by employing a targeted symbolic execution technique for generating test data. This tool can be used in diverse applications, such as killing the survived mutants in mutation testing, validating static analysis alarms, creating counter-examples for safety conditions, and reaching manually selected lines of code. This paper discusses how smart contracts differ from legacy software in targeted symbolic execution and how these differences can affect the tool structure, leading us to propose an enhanced version of the control-flow graph for Solidity smart contracts called CFG+. We also discuss how Griffin can utilize custom heuristics to explore the program space and find the test data that reaches a target line while considering a safety condition in a reasonable execution time. We conducted experiments involving an extensive set of smart contracts, target lines, and safety conditions based on real-world faults and test suites from related tools. The results of our evaluation demonstrate that Griffin can effectively identify the required test data within a reasonable timeframe.
This academic paper delves into the intricate legal dimensions of smart contracts within the context of traditional contract law, tracing the evolution of smart contracts, their intricate linkages with blockchain technology and ethereum, and their thriving applications in diverse fields such as finance and supply chain management. Using a combination of literature review and comparative analysis, this study not only highlights the multifaceted advantages offered by smart contracts, such as automated execution capabilities and greater security, but also provides insights into the legal challenges they pose. These challenges contrast with the principles of traditional contract law, including the dilemmas of the legal nature of smart contracts, contracting, performance, and modification and remedies. To reconcile these differences, this paper argues for a set of innovative solutions. These include the adoption of the integration of multi-signature protocols to enhance mutual agreement, the strategic involvement of governmental oversight to ensure regulatory compliance, and the implementation of hybrid models that synergize on-chain functionality with off-chain operations. Through this comprehensive analysis, the paper aims at forging a path towards coordinating the dynamic capabilities of smart contracts with the established tenets of contract law, thereby unlocking their full potential in a legally compliant.
The subject of this article is consideration of modern blockchain solutions and their potential use in the context of digital asset protection. Various aspects of blockchain technology are explored, including consensus mechanisms, security levels, and functionality. The goal of the work is a systematic analysis and justification of the application of various blockchain solutions for the protection of digital assets. The article is aimed at determining the effectiveness and feasibility of using specific blockchain protocols and their functional elements to ensure the safety, reliability, and integrity of digital assets. The following tasks were solved in the article: consideration of modern blockchain technologies and consideration of their role in ensuring the security of digital assets. Conducting a detailed analysis of popular blockchain protocols, including Bitcoin, Ethereum, and Hyperledger Fabric, with a focus on their security against various types of cyber threats and attacks. The following methods are used: analysis of blockchain protocols, expert evaluations of the effectiveness of protection of digital assets, and study of the technical features of each solution. The following results were obtained: clearly defined advantages and disadvantages of each protocol were obtained, taking into account their applicability in the field of digital assets in various fields of application, such as semantic analysis of texts, E-Learning, Big Data, DDP-systems, finance, etc. In addition, the issue of network privacy in the context of information protection was investigated and justifies the choice of the optimal blockchain solution for a specific use. Conclusions: The article provides readers with an overview of how to effectively use blockchain to ensure the reliability and security of digital assets in a variety of usage scenarios. In today's digital world, where the value of digital assets is growing exponentially, protecting them from cyber threats becomes a critical task. Blockchain technologies, originally developed for cryptocurrencies, have gained recognition as an effective tool in the field of cyber security. The importance of standardization and regulation in the field of blockchain technologies to ensure their effective integration and compliance with the requirements of the law is put forward.
A.M. Jumagaliyeva, A. D. Tulegulov, G.E. Murzabekova, Gulzhan Muratova
In the era of digitization, where information technology and business processes are closely intertwined, the development and implementation of blockchain-based smart contracts become key to achieving a new level of automation, security, and efficiency. This article deeply analyzed how blockchain smart contracts can enhance the execution of contractual obligations, making processes more transparent and efficient. The main aspect of study is the technical details of smart contracts and exploration of their practical application for optimizing business procedures, significantly reducing risks associated with fraud and the need for intermediaries. A practical demonstration of deploying a smart contract, executed in the Python programming language, is proposed as a method used in the article, highlighting the possibilities and challenges related to scalability and regulation. Results underscore a notable boost in operational efficiency and security, while also identifying barriers to broader technological adoption. Concluding, the significant role of smart contracts in evolving information systems is underlined, advocating for novel approaches to secure, autonomous contract fulfillment and emphasizing the importance of ongoing research to exploit their full capabilities in fortifying information security and operational efficacy.
This research analyzes intellectual property law in relation to the transfer of economic rights from the author of the intellectual creation represented into the Non-Fungible Token (NFT) to the NFT buyer by a smart contract. The purpose of this research is to examine and comprehend the transfer of economic rights from the author of the intellectual creation represented into the NFT to the NFT buyer by a smart contract. This research approaches the topic from legal perspective, using the normative juridical method. This research will closely examine several relevant the provisions of laws and regulations to identify and analyze the legal issues involved in the transfer of economic rights from the author of the intellectual creation represented into the NFT to the NFT buyer by a smart contract. Research has shown that Article 16 Paragraph (2) of the Copyright Law can be applied to the transfer of economic rights of intellectual creation represented into the NFT by a smart contract, using the argumentum per analogiam method. This means that NFT buyer can enjoy the economic rights listed in Article 9 Paragraph (1) the Copyright Law.
Analyzing the complex cybersecurity landscape of Uzbekistan’s crypto exchanges, the article emphasizes the importance of developing and implementing cybersecurity policies and regulatory frameworks. The article identifies the most pressing and evolving digital threats and evaluates the effectiveness of advanced mitigation measures. Furthermore, it explores the transformative potential of innovative legal and technological tools, such as blockchain-based identity verification, zero-knowledge proofs, and secure multi-party computation. The article provides an in-depth analysis of the current legislation governing cybersecurity practices within Uzbekistan’s crypto ecosystem and offers insights into future development prospects. To provide a comprehensive analysis of the cybersecurity situation in the cryptocurrency exchange industry, an extensive review of academic publications, industry reports and official documents related to cybersecurity in the cryptocurrency market is used. In addition, the article includes case studies of known cybersecurity incidents related to cryptocurrency exchanges. By analyzing real-life examples, the researchers aim to provide a more detailed understanding of the cybersecurity challenges faced by cryptocurrency exchanges and the effectiveness of various mitigation measures. Ultimately, the article presents practical recommendations for creating a secure, trustworthy, and innovation-driven environment for cryptocurrency users in Uzbekistan.
работа посвящена анализу правового режима (правовой природы) криптовалюты, в том числе поиску ответа на общий вопрос о наличии либо отсутствии у криптовалюты признаков объекта гражданского права (объектоспособности). Автор анализирует основные взгляды на феномен криптовалюты с точки зрения права, в том числе приводит критический анализ позиции законодателя. По результатам работы автор, анализируя такие признаки криптовалюты, как выполнение ею функции денежного суррогата, отсутствие в отношении криптовалюты обязанного лица, а также существование криптовалюты в форме информации, приходит к выводу о том, что крипиптовалюта не является объектом гражданского права. В то же время автор не исключает целесообразность применения к отношениям, связанным с использованием криптовалюты, норм о неосновательном обогащении. the paper is devoted to the analysis of the legal regime (legal nature) of the cryptocurrency, including the search for an answer to the general question about the presence or absence of signs of the object of civil law (objectability) in the cryptocurrency. The author analyzes the main views on the cryptocurrency phenomenon from the point of view of law, including a critical analysis of the position of the legislator. According to the results of the work, the author, analyzing such signs of cryptocurrency as its fulfillment of the function of a monetary surrogate, the absence of an obligated person in relation to crypto currency, as well as the existence of cryptocurrency in the form of information, comes to the conclusion that crypto currency is not an object of civil law. At the same time, the author does not exclude the expediency of applying rules on non-innovative enrichment to relations related to the use of cryptocurrencies.
The term “smart contract” has become quite widespread. It is used not only in scientific literature, but also in normative acts and in practice when concluding contracts. However, there is no single approach to the definition of this concept. The purpose of the study is to highlight the main problems that exist in modern approaches to the definition of smart contracts. To achieve this goal, the article considers the main approaches to the interpretation of the term “smart contract”. This part of the article concludes that a smart contract involves the use of a digital document rather than an electronic document, whichhas now gained some momentum of development. Discussing what lies at the heart of a smart contract, the authors consider the correlation between the concepts of “electronic document” and “digital document”. Methods: in conducting the research the general scientific (analysis, synthesis, description), as well as interdisciplinary approach) and private-scientific methods of cognition, including the interdisciplinary one, and economic analyze of law were used. Results: the article presents a new approach to the consideration of the essential content of smart contracts. As the main conclusion it is necessary to point out the position that the smart-contract is based on the typification of contractual terms. In this connection the possible problems of registration of contractual relations in the form of smart-contracts are highlighted, namely: the need to develop model conditions of various contractual forms and their unification at the international level.
The article discusses the problems of classifying cryptocurrencies as property subject to confiscation in accordance with Chapter 15.1 of the Criminal Code of the Russian Federation. Despite the controversial nature of the possibility of foreclosure on cryptocurrencies, the amendments made to Article 104.1 of the Criminal Code by Federal Law No. 214-FZ of June 13th, 2023, expand the cases of confiscation in cases of crimes in the field of computer information (Chapter 28 of the Criminal Code), which, as a rule, involve the use of cryptocurrencies. The highest court in the new version of the Resolution of the Plenum of the Supreme Court of the Russian Federation dated June 14, 2018 No. 17 “On some issues related to the use of confiscation of property in criminal proceedings” dated 12.12.2023 provides a number of provisions that allow us to judge the expansion of the possibility of using the confiscation of cryptocurrencies. The emerging heterogeneous judicial practice allows for various options for the confiscation of cryptocurrencies, depending on the specifics of the electronic medium and various features of storing cryptocurrencies. The lack of both regulatory and technical support for the execution of the confiscation of cryptocurrencies makes it difficult to effectively confiscate cryptocurrencies and achieve the goals of criminal proceedings, which requires amendments to the current legislation of the criminal cycle.
Grievance redressal has always been vital for any organization to maintain a good work environment for its stakeholders. Some organizations follow online portals, websites, or mobile applications to register grievances to provide more privacy to the complainant’s identity. However, online platforms provide better solutions to the existing manual methods for grievance redressal. Still, there are a lot of issues and challenges associated with them. This research has comprehensively analyzed the existing grievance redressal systems to identify and discuss all the challenges. After comprehensive analysis, it is found that presently there are several issues such as delayed response, opaque processes, biases, complexity and accessibility issues, lack of personalization, and other privacy and security concerns associated with existing grievance redressal methods. To address all these issues this study is proposing a blockchain-based solution for grievance redressal systems. The proposed solution will be a blockchain-based web and mobile application that consists of multiple entities such as complainants, redressal committee, and higher authorities. This system will provide the necessary privacy and confidentiality to the complainants through the immutable distributed ledger technology and auditability of the entire process with complete transparency.
A ascensão da Internet e as novas tecnologias desenvolvidas nas últimas décadas têm transformado a vida em sociedade, digitalizando diversos processos e resultando na redução da distância física entre coisas e pessoas. O comércio internacional é uma das áreas que lida com essas transformações, sendo o Direito Internacional a esfera responsável por atualizar suas regras. Inserido nas tecnologias de registro distribuído e blockchain, a nova modalidade de contratos, chamada de smart contracts, surge como ferramenta revolucionária capaz de reorganizar a estrutura comercial internacional. Apesar de já serem utilizados com diversos intuitos na atualidade, esses contratos inteligentes ainda implicam em questões regulamentárias, pois envolvem toda uma estrutura interdisciplinar que precisa ser compreendida em profundidade. Nesse cenário, a presente pesquisa tem como objetivo geral desenvolver uma abordagem inovadora e eficaz para a otimização da escolha da lei aplicável aos smart contracts no comércio internacional. Como objetivos específicos, procurou-se registrar a evolução do comércio internacional e sua importância; discorrer sobre a ascensão da Internet e das novas tecnologias no comércio internacional; especificar as novas formas de comércio e diferenciar os contratos eletrônicos dos inteligentes; conceituar as tecnologias de registro distribuído e blockchain; enunciar os conceitos e aplicabilidade dos smart contracts; analisar se eles trazem segurança jurídica; definir a importância da harmonização e uniformização na escolha da lei aplicável aos smart contracts; detalhar as perspectivas do Instituto Internacional para a Unificação do Direito Privado - UNIDROIT e a Comissão das Nações Unidas para o Direito Comercial Internacional - UNCITRAL sobre o tema; para, por fim, oferecer critérios de indicação de lei aplicável. A pesquisa é exploratória e descritiva com abordagem qualitativa, a partir de levantamento bibliográfico e documental, de acordo com o método dedutivo. Conclui- se que a melhor forma de propiciar a escolha de lei aplicável aos smart contracts se dá através da sugestão do modelo de jurisdição em duas camadas voltado para os smart contracts, acoplando a vertente autônoma do código e a defesa da criação de um novo documento uniformizado.
Lucas Massoni Sguerra, Pierre Jouvelot, Fabien Coelho, Emilio Jesús Gallego Arias · 5 authors
Smart contracts face a significant challenge regarding the data transparency inherent to the blockchain-based decentralized systems on which they run. This transparency can limit the potential applications and use cases of smart contracts, especially when privacy and confidentiality are paramount. Presently, blockchain applications that require a certain level of privacy will tend to rely on off-chain, centralized solutions. However, this approach introduces trade-offs, potentially compromising the trust and security provided by blockchain technology.In this article, we advocate for the integration of cryptographic tools into smart contracts, aiming to enhance privacy and address transparency concerns in applications. We introduce the notion of a Privacy Framework (PF) as the general building block that addresses privacy issues in smart contracts by linking privacy requirements and adequate implementations. Since auction are important applications that strongly rely on privacy for reaching their full potential, we adopt in this paper the auction known as Vickrey-Clarke-Groves (VCG) Auction for Sponsored Search as a use case to develop the notion of PFs. In practice, we provide three PF instances, of increasing complexity, to improve the privacy assurances of specific auction smart contracts. Our experimental assessment of these PF instances suggest they are efficient, not only in terms of privacy preservation, but also in gas and monetary cost, two crucial factors for the viability of smart contracts.
Esta monografía aborda inicialmente las problemáticas de implementar Smart Contracts en transacciones inmobiliarias, destacando obstáculos como las estructuras centralizadas. Se ofrece una visión general de los Smart Contracts, incluyendo su definición, configuración y su relación con la tecnología Blockchain, que proporciona transparencia y seguridad en las transacciones. Se examina el marco normativo internacional aplicable a los Smart Contracts en operaciones de compraventa de inmuebles, destacando la importancia del principio lex rei sitae y las convenciones de las Naciones Unidas. Los fundamentos jurídicos para la aplicación de Smart Contracts se basan en principios como la libertad contractual y la neutralidad tecnológica, así como en elementos de validez en el Civil Law como la capacidad, objeto y causa, y el consentimiento. Finalmente, se concluye que la implementación de Smart Contracts en transacciones inmobiliarias ofrece beneficios como eficiencia, seguridad y transparencia, siempre que se aborden los desafíos legales y técnicos de manera integral.
развитие цифровых технологий существенно трансформирует различные сферы экономики, в том числе и промышленное производство. Одним из перспективных направлений в данном контексте является внедрение смарт-контрактов, способных значительно оптимизировать бизнес-процессы. Цель данного исследования заключается в анализе потенциала смарт-контрактов в контексте модернизации промышленного производства. Методологическая база работы включает в себя системный подход, методы сравнительного анализа, синтеза и обобщения. Эмпирической основой исследования послужили статистические данные, отражающие динамику внедрения смарт-контрактов в различных отраслях промышленности, а также результаты экспертных интервью с представителями бизнес-сообщества. В ходе исследования выявлено, что использование смарт-контрактов способствует сокращению транзакционных издержек на 15-20%, ускорению процессов согласования условий сделок в 2-3 раза, а также минимизации рисков, связанных с человеческим фактором. Так, по данным компании Deloitte, внедрение смарт-контрактов в сфере логистики позволяет сократить время обработки документов на 80% и снизить затраты на 90%. При этом в машиностроении использование смарт-контрактов обеспечивает повышение эффективности управления цепочками поставок на 30-35%. the development of digital technologies is significantly transforming various sectors of the economy, including industrial production. One of the promising areas in this context is the introduction of smart contracts that can significantly optimize business processes. The purpose of this study is to analyze the potential of smart contracts in the context of modernization of industrial production. The methodological basis of the work includes a systematic approach, methods of comparative analysis, synthesis and generalization. The empirical basis of the study was statistical data reflecting the dynamics of the introduction of smart contracts in various industries, as well as the results of expert interviews with representatives of the business community. The study revealed that the use of smart contracts helps to reduce transaction costs by 15-20%, accelerate the processes of agreeing on terms of transactions by 2-3 times, as well as minimize the risks associated with the human factor. Thus, according to Deloitte, the introduction of smart contracts in the field of logistics can reduce document processing time by 80% and reduce costs by 90%. At the same time, in mechanical engineering, the use of smart contracts provides an increase in the efficiency of supply chain management by 30-35%.
Ngozi Samuel Uzougbo, Chinonso Gladys Ikegwu, Adefolake Olachi Adewusi
Enhancing consumer protection in cryptocurrency transactions presents a critical challenge due to the decentralized and often opaque nature of the cryptocurrency market. This abstract explores the legal frameworks and mechanisms aimed at safeguarding consumers engaging in cryptocurrency transactions, focusing on key issues, challenges, and recommendations for improvement. Consumer protection in cryptocurrency transactions is a pressing concern due to the prevalence of fraud, hacking, and market manipulation. The lack of regulatory oversight and the pseudonymous nature of transactions make it challenging for consumers to seek recourse in cases of fraud or misconduct. To address these challenges, legal frameworks have been developed at both national and international levels. At the national level, some countries have implemented consumer protection laws that apply to cryptocurrency transactions, such as requiring exchanges to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. However, the effectiveness of these laws is limited by the global nature of the cryptocurrency market and the difficulty in enforcing regulations across borders. Internationally, organizations like the Financial Action Task Force (FATF) have issued guidelines to combat money laundering and terrorist financing in the cryptocurrency sector. These guidelines recommend that countries implement AML and KYC measures for cryptocurrency exchanges and wallet providers. While these recommendations are a step in the right direction, implementation remains a challenge, particularly in countries with limited regulatory capacity or political will. To enhance consumer protection in cryptocurrency transactions, several recommendations can be considered. These include increased collaboration between regulators and industry stakeholders, the development of international standards for consumer protection in cryptocurrencies, and the establishment of a regulatory framework that balances innovation with investor protection. Additionally, consumer education and awareness campaigns can help individuals make informed decisions when engaging in cryptocurrency transactions. In conclusion, enhancing consumer protection in cryptocurrency transactions requires a multi-faceted approach that addresses regulatory gaps, promotes international cooperation, and empowers consumers through education and awareness. By implementing these recommendations, policymakers and industry stakeholders can work together to create a safer and more transparent cryptocurrency market.
The development of digital technologies permeates almost all areas of public relations. At the same time, certain areas remain more conservative, and legal regulation also lags behind the pace of general digitalization. This situation is especially clearly visible in the field of inheritance of digital assets. The subject of this article is to explore the opportunities and risks associated with inheriting NFTs. The purpose of the article is to determine algorithms for inheriting NFTs in the context of insufficient legal regulation of this procedure in the Russian Federation. The work uses methods of both empirical (analysis and synthesis, induction and deduction, systematization) and theoretical (methods of constructing and studying the object of study and methods of constructing and justifying theoretical knowledge) levels. When transferring a token, a unique record is transferred, and the previous owner of the NFT loses the token after it is transferred. This makes NFTs similar to material objects and necessitates separate legal regulation of the rights associated with NFTs. An NFT is inherited, not a digital object such as art. The main problem with inheriting NFTs is that these objects are intangible. They cannot be physically materialized, stored, for example, in a safe deposit box, or transferred physically. Therefore, if the owners do not have specific heirs, it will even be difficult to include NFT in the inheritance or find out about the token. Inheriting an NFT requires that the will name the NFT and include an explanation of where the NFT is held. The testator’s password must also be available. There may be problems associated with the compulsory share in the inheritance, related both to access and to the assessment and dynamically changing value of the NFT. Also, the valuation of the NFT will influence the amount of the state fee for issuing a certificate of inheritance. The practical implementation of NFT inheritance is facilitated by the development of appropriate digital technologies that optimize procedural aspects.
Smart contracts are widely applied in financial delegation contracts to address contract fraud. The smart contract delegation contract signing mechanism (DCSM-SC) effectively tackles fraud risks arising from information and interest asymmetry. However, in dealing with financial contracts, a formalized analysis method is necessary.
The study aimed to determine the role of international cooperation of EU countries on the information exchange in the investigation of cryptocurrency-related crimes. The research employed a combination of general scientific methods (description, analysis, synthesis, etc.) and empirical methods, particularly content analysis. The author used descriptive, comparative methods and analysis of legal acts. The conducted research gave grounds to provide suggestions for improving the legal framework of international cooperation of the EU countries on the information exchange in the investigation of cryptocurrency related crimes; the adoption of the basic EU document on combating criminal activity using cryptocurrency is substantiated, proposals for its adoption are formulated in the work. Prospects for future research may include studies on the further development of regulations for the exchange of information in the investigation of cryptocurrency crimes.