This research analyzes the impact of blockchain technology in the field of electronic evidence. It starts from a hypothesis of assuming that blockchain technology will have a significant impact on both public administrations and society in general, which will mean changing the way personal electronic information is managed by putting control in the hands of individual citizens rather than centralized servers or platforms. The article also analyzes regulatory efforts in the European Union to adapt to the changing landscape of electronic evidence, including the proposed eIDAS 2 regulation, which seeks to establish autonomous digital identities based on blockchain technology and then focuses on the procedural treatment of blockchain as a means and source of evidence and differentiates between this technology as a means of storing electronic evidence and as a mechanism to preserve and secure this type of evidence. Likewise, the text concludes by emphasizing the potential of blockchain technology in the context of Web3, where decentralized and interoperable systems are expected to play a fundamental role in the Spanish and European administration of justice.
Mohammed Ghouireg, Ayoub Toumi Lahreche, Oumelkheir Goug
This study aims to illuminate a recently emerged digital currency known as Bitcoin to dispel the ambiguity surrounding it and introduce it to the public.This will be achieved by defining its concept and characteristics and outlining the key differences between it and traditional currency.Furthermore, the study seeks to identify the methods of acquiring Bitcoin, the volume of its global transactions, the position of favourable legislation towards it, and the main practical challenges it faces.
Widespread adoption of cryptocurrency on a global scale has created new and unique challenges for lawmakers. The rise of decentralized digital assets are reshaping finance, trade and investment, and the absence of consistent regulation exposes consumers to fraud and money laundering, market manipulation, and consumer protection adherence risks. In this paper, we have gauged the available legal tools in the cryptocurrency era and have reviewed cross-border regulatory regimes, jurisdictional challenges, and technological responses and have identified the road to a credible regulatory framework. Relying upon qualitative analysis and a comparative legal perspective, this article underscores the necessity that for the preservation of stability and security of digital financial systems the right mix of innovation and regulation ought to be struck.
The article is devoted to the study of the tax and legal aspects of the ruble-backed stablecoin A7A5, which is a foreign digital right and is qualified in the Russian Federation as a digital financial asset. The subject of the study is the specifics of the legal regime of foreign digital rights classified as digital financial assets in the Russian Federation, and the taxation of transactions with such an asset. As a result of the conducted research, the author comes to the conclusion that, despite the creation of a legal framework for the integration of foreign digital rights into the Russian legal order, their tax and legal regime remains insufficiently developed. It is shown that this category is of an auxiliary (technical) nature and serves primarily as a tool for legitimizing a certain range of foreign assets in Russia, without being a full-fledged and independent legal construct. It is noted that the Tax Code of the Russian Federation lacks special provisions regulating the taxation of foreign digital rights, except for transactions within the experimental legal regime, which creates legal uncertainty. The author argues that recognizing foreign digital rights as digital financial assets represents a new phase in Russia's digital financial assets market, driven significantly by the A7A5 asset's integration with a public blockchain. This not only expands the opportunities for the circulation of such assets but also gives rise to unique transactions with such assets in the decentralized finance environment, which directly raises the issue of the need to develop special approaches to accounting for income, expenses and losses from such transactions for tax purposes. It is concluded that the economic nature of such transactions may be similar to transactions with derivative financial instruments and hedging. This similarity justifies extending the special tax rules for such analogous instruments to transactions with foreign digital rights. The results of the study can be applied to the further development of legislation on the taxation of foreign digital rights.
The integrity, transparency, and security of voting systems are crucial to maintaining the democratic process. Traditional electronic voting systems have faced several challenges, including vulnerabilities to hacking, fraud, and tampering. Blockchain technology, known for its decentralized and immutable nature, has emerged as a potential solution to address these issues. This paper explores the application of blockchain-based solutions in creating secure and transparent voting systems. By leveraging the distributed ledger technology of blockchain, the proposed systems ensure data integrity, confidentiality, and voter authentication while enabling real-time auditing. Blockchain-based voting systems offer several advantages, including resistance to vote tampering, the prevention of double voting, and enhanced accessibility for remote and disabled voters. Moreover, the use of cryptographic techniques and smart contracts further enhances security and transparency, allowing for verifiable, auditable, and tamper-proof elections. This review highlights existing research and prototypes, discusses the challenges of implementing such systems, and provides future directions for the development of blockchain-enabled electoral solutions.
The work examines modern approaches to building electronic voting systems, such as blockchain, which promises to revolutionize the process due to its immutability and decen-tralization properties, as well as traditional cryptographic methods, including homomorphic encryption, which allows vote counting without the need to decrypt each individual vote. Blind signatures ensure the ability to confirm a vote without disclosing the user's identity, and zero-knowledge proofs allow voting without interacting with the server. The goal of the work is to select an approach for building electronic voting systems based on a comparative analy-sis of their key characteristics. The solved tasks include reviewing the requirements, general-ized structures, and main procedures of electronic voting systems; analyzing the existing types of electronic voting systems and their comparative characteristics. During the work, existing systems and other literature were thoroughly analyzed. The article provides a de-tailed analysis of the advantages and limitations of these technologies, as well as their suit-ability for different electoral systems, considering important aspects such as scalability, effi-ciency, and protection against potential threats. Throughout the work, a list of requirements for electronic voting systems was compiled, the main procedures present in electronic voting systems were outlined, a set of actors in typical electronic voting systems was defined, and the generalized structures of their main types were presented. A comparative analysis of the types of electronic voting systems based on compliance with the requirements was conducted. An approach was chosen for further system development.
Internet access is a prerequisite for access to Web3. Consequently, Web3 and the benefits thereof are rendered inaccessible for those individuals who lack Internet access. Presently, rich discussion exists on the topic of a right to Internet access. The central purpose of this contribution is not to argue for the recognition of such a right. Rather, the central purpose of this contribution is to suggest that if a right to Internet access is to be recognised, then it can be grounded in Article 11 (1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR). Examining the potential of a right to internet access to be derived from this provision facilitates an examination of the parameters of the right to an adequate standard of living. It is suggested that the right to an adequate standard of living is not fixed or static but is instead capable of capturing technological and societal advancements. The advantages of this approach are two-fold. First, grounding a right to internet access within the right to an adequate standard of living recognises a right to internet access both as a constituent part of the right to an adequate standard of living and as an independent right. After all, independent rights have been interpreted as deriving from Article 11 (1) ICESCR. Second, anchoring a right to Internet access in Article 11 (1) ICESCR allows the established legal framework of the ICESCR to be applied to delimiting the content of a right to internet access so understood.
Can blockchain-based decentralized autonomous organizations (DAOs) revolutionize regional integration, or is it an evanescent promise? This research addressed the crisis of confidence that has been haunting institutions like the African Union (AU) and the European Union (EU), whose central authorities could not deliver on transparency and inclusivity. The objectives were to unbundle DAOs' potential, assess their place in regional architectures, and propose a hybrid governance model. Mixed-methods with qualitative case analysis of the AU, EU, and Aragon DAO complemented with 30 interviews of stakeholders and comparison grounded the research. Findings showed DAOs' potential in making transparency more possible, as the $10 million Aragon's treasury example showed, and enrolling people in it but with accompanying hurdles from digital divides (37% internet reach in Africa) and resistance from elites. A hybrid solution that stacked DAOs for open decision-making, traditional control for stabilization, and interface modules for useability emerged. Five proposals that involved piloting DAOs for transparency, modeling inclusive voting, investing in infrastructures, creating regulations, and fostering cultural dialogue charted the way forward. This research compelled regional leaders to act with haste, coupling code with human trust to make government inclusive. It enriched theory and practice of contemporary governance and foresaw an achievable world where oneness was not elite-driven but common.
В статье рассматривается проблема системного разрыва в экосистеме Web3, проявившегося на фоне стремительного роста DeFi и числа пользователей: масштабирование выявило низкое качество пользовательского опыта, выражающееся в высоком оттоке новичков после первой транзакции и связанное с когнитивной перегрузкой интерфейсов, непрозрачностью комиссий и дефицитом персонализированных сценариев. В качестве решения предлагается концепция и архитектура интеллектуального слоя-посредника (AI Middleware), интегрируемого между пользовательским контуром и блокчейн-инфраструктурой. Его ключевая функция – автоматизированная реконструкция и формализация пользовательских намерений в парадигме intent-centric, где управляемым объектом выступает цель операции, а не набор низкоуровневых действий. Для интерпретации намерений предполагается применение методов машинного обучения, включая кластеризацию поведенческих паттернов и графовые нейронные сети для моделирования связей между адресами, протоколами и последовательностями операций. На основе исторических данных, а также результатов исследований российских научных центров (ИТМО, ВШЭ) обосновывается, что внедрение AI Middleware повышает удержание за счет снижения порога входа и неопределенности, и сокращает транзакционные издержки благодаря более точному выбору маршрутов и параметров исполнения с учетом контекста, и типологии намерений.
According to the author, the current trend of digitalization of relations in the field of finance, which is observed today, entails the need to revise approaches to the essence of financial legal relations. Public relations on the formation, distribution and use of financial assets should be regarded as financial and subject to criminal law protection. At the same time, these legal relations do not necessarily develop with the participation of the state and are characterized as public law and state power. The expansion of the list of financial assets fixed by the author allows substantiating the conclusion that in the conditions of the modern information society in cyberspace, not only redistribution takes place, but also the creation of a social product. At the same time, the current legislation in this area lags behind the dynamically developing social relations. In support of this, the author cites a technology for creating digital documents that has not yet been formalized by law through the use of the capabilities of non-fungible NFT tokens. The author emphasizes that the opportunities provided by cyberspace are actively used by attackers for criminal purposes. Documents that define the strategy for the development of the Russian state and ensuring national security, as well as the doctrine of criminal law, adequately assess the threat of financial crimes in cyberspace. The tasks of the criminal law protection of financial legal relations outlined in the criminal law, contrary to the positions expressed in the scientific literature, also quite fully reflect the role of criminal law in combating crime of this type. Contrary to the approach prevailing in the doctrine of criminal law, whose supporters focus on the method of committing financial crimes, the author connects the prospects for studying the identified issues with an analysis of the specifics of cyberspace as a special area for committing such crimes. In this regard, the scientific article highlights the signs of financial legal relations in cyberspace.
The study aimed to identify key challenges in the field of legislative harmonisation and to outline the prospects for developing cryptocurrencies in the European Union, the United Kingdom and Ukraine. The study used hermeneutical, comparative and historical methods. The study defined crypto asset, its concept and content, in particular, the types into which it is divided (asset-linked token, electronic money token, and service token). The study analysed cryptocurrency regulations in the jurisdictions of the European Union, the United Kingdom, and Ukraine. At the same time, the study addressed the trends and prospects for legal regulation of virtual assets in these countries. The study established that the fragmented regulatory approach applied in the UK has led to uncertainty, which has had a negative impact on innovation and investment in the cryptocurrency sector. The study revealed significant differences in the regulation of cryptocurrencies in different countries, which create substantial obstacles to the harmonisation of legislation and further development of the market. At the same time, there is a general tendency to tighten the regulation of cryptocurrencies to prevent their use for illegal activities, such as money laundering and terrorist financing, and to ensure investor protection. This study emphasises the importance of enacting the Law of Ukraine “On Virtual Services”, which will become the only legal act in Ukraine that will regulate relations in the field of crypto assets
Using the Ethereum blockchain for decentralized voting offers a secure, transparent, and tamper- resistant method for conducting online elections. This application runs on the Ethereum blockchain network, enabling participants to cast their votes and access voting results without needing any intermediaries. In this approach, votes Once information is stored on the blockchain, it cannot be altered or tampered with, ensuring transparency and trust in the recorded outcomes. Smart contracts are utilized to automate the voting process, ensuring it remains transparent and secure. The combination of blockchain technology and a decentralized system delivers a dependable and cost-efficient solution for conducting fair and trustworthy elections.
Blockchain technology provides a technical solution for the challenges faced by e-government, such as low efficiency, excessive energy consumption, and lack of trust mechanisms. It can promote the establishment of a more efficient and high-quality government service system, thereby enhancing the public trust of the government. Although blockchain technology provides theoretical innovation to traditional governance structures with its decentralization, consensus mechanisms, and enhanced trust, its impact and ability to transform existing governance structures still have limitations in practical applications. Based on an in-depth analysis of the concept and application boundaries of blockchain, this article explores its value in the field of e-government. At the same time, it systematically proposes strategic suggestions to promote the development of blockchain technology in the field of e-government from multiple aspects such as institutional construction, technical standardization, and professional talent cultivation, in response to its limitations and application risks. By accelerating technology research and development and standard construction, strengthening high-level promotion, optimizing promotion competition mechanisms, and conducting rooted research, the application and promotion of blockchain in government governance can be accelerated, laying a solid foundation for building a future intelligent and transparent government service model.
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.
Abstract The verdict in the case of Skatteverket v. David Hedqvist (Kokott, Advocate General (2015) Opinion delivered on 16 July 2015, Case C-264/14. ECLI:EU:C:2015:498. Available via TandF Online. https://doi.org/10.1080/20488432.2015.1096631 .) is crucial for understanding how the EU treats virtual currencies, such as Bitcoin, in terms of Value-added Tax (VAT). This case involved the Swedish citizen David Hedqist who was seeking clarity from the Swedish Tax Authority Skatteverket on exchanging money for Bitcoins. The case set a precedent exempting such services from VAT under the EU’s VAT Directive (Council Directive 2006/112/EC (2006) On the common system of value added tax. OJ L347. Available via EUR-Lex. https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32006L0112 . Accessed 3 January 2024.). Specifically, Article 135(1)(e) of the EU’s VAT Directive excludes those transactions from VAT that include money-related transactions, that include deals or negotiations about different kinds of money, including cash and coins that are officially legal tender, i.e., used for buying things, except for collectable items like special coins or notes that people collect but do not use as a means of payment. Skatteverket (Kokott, Advocate General (2015) Opinion delivered on 16 July 2015, Case C-264/14. ECLI:EU:C:2015:498. Available via TandF Online. https://doi.org/10.1080/20488432.2015.1096631 .) clarified that cash transactions are not subject to VAT, even though they are considered services for VAT purposes. Despite this clarity, the evolving landscape of digital assets’ uniqueness, including Non-Fungible Tokens (Alawadhi KM, Alshamali N (2022) NFTs Emergence in Financial Markets and their Correlation with DeFis and Cryptocurrencies. Applied Economics and Finance 9:108. https://doi.org/10.11114/aef.v9i1.5444 . Available at CORE. https://core.ac.uk/download/pdf/524752899.pdf . Accessed 3 January 2024.), continues to challenge VAT frameworks across member states. Using insights from the European Commission’s Working Paper 1060, this article advocates for a unified approach tailored to digital and crypto services, addressing complexities in NFT taxation to reduce uncertainty and foster market cohesion. The findings highlight the importance of legislative changes and increased cross-border collaboration, as well as provide recommendations for policymakers and stakeholders in the digital finance and platform sector (European Commission (2024) Working Paper 1060. Available at: https://ec.europa.eu/info/publications/working-paper-1060_en . Accessed 3 March 2024.). By proposing strategic harmonisation of VAT enforcement, the research helps to improve tax compliance and support long-term growth in the EU’s digital market (Cappai M (2023) The role of private and public regulation in the case study of crypto-assets: The Italian move towards participatory regulation. Computer Law & Security Review 49:105831. Available at: https://www.sciencedirect.com/journal/computer-law-and-security-review/vol/49/suppl/C .; Hasa J (2021) Digitaalisten palvelujen rajat ylittävä kuluttajakauppa ja laajeneva arvonlisäveron erityisjärjestelmä. Licentiate thesis. University of Lapland, Faculty of Law. Available at: https://lauda.ulapland.fi/bitstream/handle/10024/64771/Hasa_Juho.pdf?sequence=1 . Accessed 1 March 2024.).
Maryna Sadovenko, Olga Kondratyuk, Nataliia Suprun, Maxim Tarverdiev
In today's digital age, technical engineering plays an important role in using artificial intelligence and cryptocurrency to optimize tax systems and improve financial efficiency in fintech businesses. Artificial intelligence helps automate business processes, especially in taxation, which reduces the cost of tax administration. Cryptocurrencies open up new opportunities for optimizing tax systems, providing greater transparency and efficiency in financial transactions.. The use of AI in tax administration can streamline processes, reduce human error, and improve compliance. AI algorithms can analyze large amounts of data, identify patterns, and detect potential tax evasion or fraud, leading to more accurate tax assessments and improved revenue collection. Additionally, AI-powered chatbots and virtual assistants can provide taxpayers with personalized support and guidance, enhancing the overall experience. Cryptocurrencies, on the other hand, offer a transparent and secure way to conduct financial transactions. By leveraging blockchain technology, cryptocurrencies enable immutable and auditable records of transactions, which can facilitate tax reporting and compliance. Furthermore, the decentralized nature of cryptocurrencies eliminates the need for intermediaries, reducing transaction costs and increasing efficiency. However, the implementation of these technologies in tax systems requires significant investments in infrastructure, software, and personnel training. Tax authorities ought to allocate substantial budgets to modernize their systems and integrate AI and blockchain solutions seamlessly. Additionally, concerns over data privacy and the potential for cyber threats pose challenges in ensuring the confidentiality and security of taxpayer information.
Open access
Impact of AI and Big Data on Business and Society
Digitalization and Economic Development in Agriculture
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.
Bitcoin stands as a groundbreaking development in decentralized exchange throughout human history, enabling transactions without the need for intermediaries. By leveraging cryptographic proof mechanisms, Bitcoin eliminates the reliance on third-party financial institutions. Ethereum, ranking as the second-largest cryptocurrency by market capitalization, builds upon Bitcoin’s groundwork by introducing smart contracts and decentralized applications. Ethereum strives to surpass the limitations of Bitcoin’s scripting language, achieving full Turing-completeness for executing intricate computational tasks. Solana introduces a novel architecture for high-performance blockchain, employing timestamps to validate decentralized transactions and significantly boosting block creation throughput. Through a comprehensive examination of these blockchain technologies, their distinctions, and the associated challenges, this paper aims to offer valuable insights and comparative analysis for both researchers and practitioners.
The article delves into a comparative study of the legal regime of smart contracts in Russia, Germany and the United States. In-depth analysis of the concept, normative support, technological and legal nature of smart-contracts is carried out, the areas of application of this tool in civil law transactions and other legal relations are highlighted. Significant conclusions were obtained. Firstly, in the legal systems under consideration there is still no unambiguous definition of a smart contract. Secondly, a smart contract is understood to a greater extent as a program code embedded in websites or mobile applications, providing a number of elements of the procedural side of various transactions, rather than as an equivalent of a civil law contract. Thirdly, the areas of application of smart contracts are constantly expanding, they are used in the work of e-government, banking, e-commerce, electoral processes, and other legal relations. This requires the active activity of legislators in the countries in question.
Joseph Kuba Nembe, Joy Ojonoka Atadoga, Beatrice Oyinkansola Adelakun, Olubusola Odeyemi · 5 authors
Blockchain technology has emerged as a disruptive force in the realms of tax compliance and financial regulation, presenting both opportunities and challenges for governments, businesses, and regulators worldwide. This abstract explores the multifaceted legal implications stemming from the integration of blockchain technology into tax systems and financial frameworks. The decentralization and transparency inherent in blockchain networks offer promising avenues for enhancing tax compliance. Smart contracts, powered by blockchain, can automate tax calculations and payments, reducing errors and facilitating real-time monitoring of transactions. Additionally, the immutable nature of blockchain ledgers provides auditors with an unprecedented level of transparency and traceability, potentially reducing tax evasion and fraud. However, the adoption of blockchain technology also poses significant regulatory challenges. The anonymity afforded by certain blockchain implementations raises concerns regarding the identification and verification of taxpayers and transactions, potentially hindering enforcement efforts. Moreover, the cross-border nature of blockchain transactions complicates traditional tax jurisdictional boundaries, necessitating international cooperation and harmonization of tax policies. In the realm of financial regulation, blockchain technology introduces novel considerations for regulators seeking to ensure market integrity and investor protection. The proliferation of blockchain-based financial products, such as cryptocurrencies and tokenized assets, challenges existing regulatory frameworks designed for traditional financial instruments. Regulators must grapple with issues of investor disclosure, market manipulation, and systemic risk in this rapidly evolving landscape. Furthermore, the decentralized nature of blockchain networks challenges the efficacy of traditional regulatory mechanisms, such as centralized oversight and enforcement. Regulators face the daunting task of striking a balance between fostering innovation and safeguarding against potential risks, such as money laundering and terrorist financing, inherent in decentralized financial systems. The integration of blockchain technology into tax compliance and financial regulation presents a complex array of legal implications. While offering potential benefits in terms of efficiency and transparency, blockchain also necessitates adaptation and evolution of regulatory frameworks to address emerging challenges and risks in a rapidly evolving digital landscape. Effective collaboration between governments, businesses, and regulators is essential to harness the transformative potential of blockchain technology while mitigating its associated legal and regulatory challenges. Keywords: Blockchain, Regulators, Legal, Tax, Technology, Financial, Review.