Ірина Володимирівна Антошина, I. В. Антошина, Ирина Владимировна Антошина, Iryna V. Antoshyna · 13 authors
The development of digital technologies is forcing lawyers to analyze phenomena that have recently looked fantastic. This means that a phenomenon like smart contracts has ceased to be a theoretical idea of improving commodity monetary transactions and now needs a legal justification. In this article, we have analyzed smart contracts in terms of their belonging to digital technologies and the legal field, that is, how they can be equated with legal agreements, if they are their analogues, what application can it find given the legislation in the field of civil (contractual) law. The purpose of our study was to establish a link between smart contacts and their legal regulation, with the feature of smart contract implementation perspectives. The methodology used are systemic and formal-legal methods, as well as methods of analysis and synthesis. The results found highlight that a smart contract is a computer code that is entered into a blockchain network to execute a transaction, the usual expression of which is an agreement between the parties. From a legal point of view, smart contracts are only a part of ordinary agreements (contracts) under the practice of international and national law.
PSC Business against Corruption under the Commissioner for Rights, Elena V. Prudius
The rapid spread of digital technologies, namely – innovative technologies, has set the trajectories for the development of a new stage in the economy of the information society. Such growth is closely related to the emergence of new ways of doing business, new ways of concluding contracts and fulfilling contractual obligations, new forms of existence of contracts and new contractual structures. Thus, there is a need to form a new regulatory environment that provides a favorable legal regime for the emergence and development of modern technologies, as well as for the implementation of economic activities related to their use. Of particular importance in this case is the conclusion of transactions in electronic form. One of the varieties of such transactions can be called a smart contract, which has long been actively distributed in foreign countries, but is not used so often in the Russian Federation. The main reason for the low number of such «smart» contracts is that the legislator has practically not paid attention to the legal regulation of this category. The purpose of the work is to analyze smart contracts, identify problems in their application and propose solutions to the current situation. The following methods were used: historical, comparative law, induction and deduction, analysis and synthesis. The author came to the conclusion that there is no legal definition of smart contracts and the specifics of its conclusion in the current legislation. Cryptocurrency is also closely related to smart contracts, which is also not fully regulated. In this regard, the author suggests ways to solve the identified problems.
The purpose of the study is to analyze the provisions of the novelties of the Russian legislation on digital financial assets and digital currency. The methodological basis was the method of comparative legal analysis, using which the authors identify general patterns and features of the legal status of Russian digital joint-stock companies and decentralized autonomous organizations widely discussed in foreign literature. The results of the study were conclusions about the significant differences between the above organizations. A company issuing digital shares, under Russian law, differs from an ordinary non-public joint stock company by limiting the circulation of digital shares within the framework of a digital platform. Unlike the decentralized autonomous organization, it has legal entity and governing bodies. It was also concluded that there is a significantly greater variety of rights of holders of foreign token-shares in comparison with the rights of shareholders of Russian digital joint stock companies. The novelty of the research is contained in the results of the analysis and doctrinal interpretation of the norms of Russian federal laws concerning digital shares. So, in particular, it was established that such are recognized at the same time as securities and digital rights. Such a legal structure appears to be unnecessarily complex. According to Russian law, digital shares differ from ordinary shares in the form of certification of shareholders “rights, while no differences have been revealed in the scope of shareholders” rights.
The rapid development of the use of information and communication technologies, in particular smart contracts, necessitates legal regulation of the latter. The principle and mechanism of operation of smart contracts are of great legal interest, and although certain programmers the idea is expressed that a reasonable contract is software and is not a legal term, I do not agree with this possible, because a reasonable contract falls under the generally accepted definition of the contract, promotes monetary turnover and has real material consequences for the parties. The purpose of the smart contract is to transfer information and ensure that all participants fulfill the conditions set in the code. The potential of smart contract technology is capable of changing approaches to contract law no less than the advent of computers and the Internet has changed the way lawyers work. Taking into considerationthe diversity of scientific views on the legal nature of the smart contract, the lack of established scientific approaches, the considerable scientific interest of the topic requires its proper theoretical justification.
Despite the ubiquity of cryptocurrency, no international uniform regulatory system exists. State-by-state regulation of cryptocurrencies has problematic implications for cross-border investigations and predictability in application. Moreover, this regulatory framework leaves open opportunities for actors worldwide to violate international sanctions with impunity. This Note posits that an international regulatory framework is necessary to combat the evasion of financial sanctions on practical and theoretical grounds. It further argues that the best way to structure this new framework is through the enactment of a new multilateral treaty. A formal international regulatory mechanism for cryptocurrencies would have numerous benefits, foremost among them limiting the evasion of international sanctions. An international regulatory mechanism would also promote predictability in the regulation of cryptocurrencies. This would in turn entice institutional investors to build out the field of crypto users and encourage stability in an otherwise volatile marketplace. The proposal outlined within this Note goes beyond standard legal justifications for a multilateral mechanism. It drills down into the substantive mechanisms that an effective treaty must include, such as public key cryptography; an international public key directory; prosecution guidelines; and foreign fine credits. The levels of specificity to this end are perhaps uncommon in a typical legal proposal. However, this analysis is essential to explain why a new, multilateral treaty is required. The current structures in place cannot begin to grapple with the complex underlying issues which are so crucial to the regulation of cryptocurrency. The substantive components of the proposed treaty undergird the very reason why a new multilateral treaty is necessary.
Marina Kasatkina* Consumer Protection in the Light of Smart Contracts DOI: 10.54148/ELTELJ.2021.1.95 Abstract This article aims to evaluate how common forms and methods of protecting the rights and legitimate interests of consumers are applicable in the area of smart contracts. The author highlights the potential negative effects of smart contracts on consumer protection. In this […]
The article considers international experience of legal regulation of cryptocurrencies, provides legal analysis of the regulatory framework for the circulation of cryptocurrencies in the countries with developed economies, including the United Kingdom, Norway, the USA, and Japan. Legislative peculiarities of regulating the circulation of cryptocurrencies in the countries that have favorable conditions for the development of crypto business, in particular, Australia, Estonia and Switzerland, are determined. The example of these countries shows how the peculiarities of cryptocurrency regulation affect financial stability and security. The need to further improvement of the legal framework for the creation of an optimal platform for the cryptocurrency circulation, promotion of the development of crypto business as a new forward-looking area of economic development and at the same time protection of public financial systems, prevention of criminal money laundering is proved.
Irina Astrakhantseva, Roman Astrakhantsev, Alexey Los
The article focuses on the relevance of establishing legal norms for virtual currency, which is currently working in the gray zone. The article substantiates why cryptocurrency was referred to other property in the framework of civil law. The author suggests a definition of cryptocurrency to introduce it into legislation. Attributes of cryptocurrency theft are considered. The most attention is given to fraud, in particular different types of cryptocurrency phishing, and possible ways of criminal prosecution for cryptocurrency theft.
Abstract: The article is devoted to a new phenomenon for the Russian legal and economic space – the smart contract. The author of the article, based on the novel of Part 2 of Article 309 of the Civil Code of the Russian Federation, considers the dynamics of a civil obligation that is fulfilled through the use of information technologies. Thus, the article structurally highlights the parts devoted to the actual dynamics itself, the stage of occurrence of an obligation mediated by a smart contract; the stage of performance of such an obligation through the prism of the principles of performance; as well as the stage of termination of the obligation under study. The paper shows three main scientific approaches that reflect the mechanism of occurrence of an obligation that is fulfilled through the use of information technologies; the legal characteristics of click-wrap and browse-wrap agreements are given; the specifics of the known principles of performance of obligations in the performance of obligations using information technologies are reflected; it is concluded that it is necessary to adapt the law of obligations to digital realities, which is possible without a radical "breaking" of the pandect system of Russian civil law and the key approaches of the legislator to the main legal instruments of civil law.
Олександр Сергійович Омельчук, О. С. Омельчук, Александр Сергеевич Омельчук, Oleksandr Serhiyovych Omelchuk · 13 authors
The article analyzes the legal nature and specific of legal regulation of cryptocurrency in order to reveal the features of inheritance of cryptocurrency assets. The article aims to reveal whether it is possible to inherit cryptocurrency in terms of the existent legislation and if so, what kind of peculiarities of cryptocurrency should be considered. The financial and legal nature of cryptocurrency are described in the article. The main differences between cryptocurrency and traditional electronic money are revealed. The current legislation of Ukraine and some European countries on cryptocurrency legal status is analyzed. It is stated, that in most countries of the world, cryptocurrency is not considered to be money or currency, but rather a kind of property. It is noted, that while solving the issue of inclusion of cryptocurrency assets in the legacy, it is necessary to take into account the functional features of cryptocurrencies in general and the specifics of a particular type of cryptocurrency. Most of the benefits of cryptocurrencies for their owner (such as anonymous character) are obstacles to their inheritance according to the procedures provided by applicable law. The classification of the methods of inheritance of cryptocurrency assets is made in the article. The differences in the inheritance of cryptocurrency and tokens are revealed.
The article undertakes an analysis of the potential of using blockchain technology to strengthen the security of the state, which is guaranteed by a strong and efficient army. As part of his own studies, the author first characterizes the solutions that were first implemented in 2008 with the creation of Bitcoin. Blockchain technology, described as the most important achievement of humanity since the creation of the internet. It is increasingly used in areas such as payment management, digitization, and contract storage, or in the private sector, where data security plays a key role. Available reports and studies indicate that the United States, the Russian Federation, and the People's Republic of China are intensively working on the implementation of technology in the functioning of their armies. In turn, countries such as South Korea or India began pilot programs in 2019, which will eventually lead to the implementation of blockchain technology in their armies. Hence, the question arises, what military application blockchain technology has or may have in the foreseeable future, and how its use by armies can contribute to improving the security of the state? In the study presented, the following three areas of potential application have been distinguished: security in cyberspace, supply chain management, and more effective and reliable communication.
Open access
European and Russian Geopolitical Military Strategies
На сегодняшний день создание и обращение негосударственных денежных знаков строго регламентируется на законодательном уровне в большинстве стран, и купить товар официально на данные средства достаточно проблематично. Одним из способов является возможность заказать товар через неофициальные каналы поставок. Появление подобных частных валют имеет свою историю. Появление Интернета неразрывно связано с возможностью беспрепятственного обращения материальных ценностей и реализации идей между людьми и различными субъектами. Этому способствовало появление криптовалют как виртуальных денежных единиц. Криптовалюта является финансовой негосударственной банкнотой, используемой в обращении индивидуальными субъектами. Смыслом существования таких денежных единиц является обеспечение преимущества перед государственной валютой. На всем протяжении существования нашей цивилизации имело место возникновение иных денежных форм. В середине 19 века в США и других развитых капиталистических странах появлялись массы денежных знаков, отличных от официальных государственных денег. Их выпускали не только крупные компании вроде банков, муниципалитетов и магазинов, но и частные лица. Ценность современных активов определяется их рыночной стоимостью, регулируемой продавцом и покупателем. Во многих странах криптовалюта сегодня является цифровым товаром. Однако важным вопросом на этапе создания криптовалюты является ее базовая стоимость. Для продуктивного использования криптовалют создаются блокчейн-технологии для их интеграции в проекты, решающие проблемы современного общества - это важный фактор успешного развития криптоэкономики. Nowadays the creation and circulation of non-state banknotes is strictly regulated at the legislative level in most countries and it is quite problematic to buy goods officially with these funds, one of the ways is to order goods through unofficial supply channels. The emergence of such private currencies has a history. The emergence of the Internet is inextricably linked with the possibility of the unhindered circulation of material assets and the implementation of ideas between people and various subjects. This was facilitated by the emergence of cryptocurrencies as virtual monetary units. Cryptocurrency is a financial non-government banknote used in circulation by individual entities. The raison d’être of such monetary units is to provide an advantage over the state currency. Throughout the existence of our civilization, other forms of money have emerged. In the middle of the 19th century, masses of banknotes, different from official state money, appeared in the United States and other developed capitalist countries. They were produced not only by large companies like banks, municipalities and shops, but also by individuals. The value of modern assets is determined by their market value, regulated by the seller and the buyer. In many countries, cryptocurrency is a digital commodity today. However, an important issue at the stage of cryptocurrency creation is its base value. For the productive use of cryptocurrencies, blockchain technologies are being created for their integration into projects that solve the problems of modern society - this is an important factor in the successful development of cryptoeconomics.
Open access
Security, Politics, and Digital Transformation
Digitalization and Economic Development in Agriculture
The article focuses on the relevance of establishing legal norms for virtual currency, which is currently working in the gray zone. The article substantiates why cryptocurrency was referred to other property in the framework of civil law. The issues of referring cryptocurrency to such objects of civil rights as monetary funds, currency values, securities, intellectual property, intangible assets, etc. are considered in detail. Based on a comprehensive analysis, the classification of cryptocurrency as a different property within the framework of civil law is substantiated. The author's definition of cryptocurrency is given as a cryptographically protected property with signs of cryptographic authentication, decentralization, management through consensus, and the use of distributed ledgers. The economic essence and legal status of the cryptocurrency proposed by the authors emphasize the exclusively digital version of the existence and use of this object, indicates the possibility of the turnover of this asset, delimits the concept of cryptocurrency, non-cash and electronic money. The definition of a crypto asset as property makes it possible to develop tax legislation, since the implementation of cryptocurrency is close to investment instruments, which makes it possible to clarify the issue of paying such a tax as VAT. Cryptocurrency as property describes not the thing itself, but the legal relations associated with it, that is, those rights that, according to the rules of law, can be exercised. The article also raises one of the main issues that must be resolved - this is the recognition of ownership of this specific type of property. According to the authors, the starting point for determining the ownership of the cryptocurrency should be that the subject of the right will be the owner of this asset if he legally gained access to the private key by analogy as the subject acquired the ownership of a tangible asset on a legal basis.
The purpose of the research is to use blockchain technology in the electoral process. The study was conducted on the example of blockchain technologies used in elections in the United States, Canada, Australia, Sierra Leone, Switzerland, Spain, Russia and other countries. The methodological basis of the research is based on the methods of comparative analysis and component analysis of definitions. Empirical methods of expert assessment and interviewing were used. The pros and cons of blockchain technologies and the possibility of using this innovative technology in elections of different levels are revealed. The advantages of inclusive blockchain technology include the mobility and accessibility of voting; minimizing the costs of organizing and conducting elections; de-bureaucratization by reducing the staff of election commissions; the possibility of excluding the impact on voters from participants in the electoral process; reducing the time for processing ballots and determining the results of voting; increasing the level of trust in electoral procedures on the part of citizens who usually do not participate in voting. Among the disadvantages of blockchain technologies, we can highlight: technical failures and hacker cyber-attacks; the possibility of hackers using data about voters, in case of hacking electronic databases; violation of the secrecy of voting.
The paper analyzes the legal status of the consumer when concluding and executing a smart contract. The author proves the existence of special risks for citizens associated with the conclusion and execution of a smart contract. In particular, the author considers the risk of a consumer’s misunderstanding of the terms of a smart contract, the risk of a difference between the terms of a smart contract and the terms of a contract set forth in the natural language, the risk of including in a smart contract conditions that infringe on consumer rights (unfair contractual terms), as well as special manifestations of regulatory and operational risks in relation to a smart contract. Currently, in the Russian Federation, as in most foreign jurisdictions, there are no special legal mechanisms aimed at protecting consumer rights from these risks. The “general” mechanisms of consumer protection existing in the Russian jurisdiction are insufficient. Considering this, the author proposes mechanisms for each risk aimed at minimizing its implementation and negative impact on the citizen. The following risk-oriented approach to regulating relations when concluding a smart contract with the participation of a consumer is proposed. A citizen can conclude transactions using a smart contract subject to legislative limitation of his potential losses under a transaction (limiting the transaction price) and the introduction of the proposed legal regulation aimed at minimizing the risks discussed in the paper.
The purpose of this article is to analyze methods, approaches, and tools of distributed ledger technology (DLT) for working with documents in education. The objectives of the article are to analyze problems with the authentication of educational documents, develop new structural solutions using block chain technology, consider two models, and evaluate their use for educational documents. Authentication of educational documents is carried out using state registers, which is a complex and resource-intensive process. There is an increase in the number of forged documents in the world, which calls into question the effectiveness of modern mechanisms. Distributed ledger technology (block chain) is a sustainable technological trend that affects the development and quality of the digital economy. The existence of a mechanism for verifying the authenticity of educational documents that is resistant to malicious manipulation is an urgent task that goes beyond the sphere of education, possible solutions to which are proposed to be considered in this paper. The article provides a brief description of DLT and considers the approach of using the technology to authenticate educational documents. It consists of two main stages: the issue of a digital educational document and its verification. The role of a trusted third party in the issue and validation process is considered. The paper presents the models for issuing and validating digital documents based on distributed ledger technology, which allows one to eliminate the limitations and shortcomings of existing approaches. The effectiveness of the approach based on the proposed models is revealed. The formulated approaches can be applied in various socio-economic areas and public administration to work with similar documents.
The article explores the dialectic of determining the legal status of cryptocurrencies. Digital technologies are considered specifically for their application in the financial sector. The features of the use of digital technologies in various countries of the world are analyzed. Due to the variability of the legal regulation of digital technologies, the complex nature of their implementation is noted, which is not reduced to a simultaneous behavioral act. It is concluded that there is no universal way to sell cryptocurrencies in the financial market. The analysis of existing scientific approaches to understanding the concept of cryptocurrency, bitcoin is carried out. The article examines the digital technologies used in the financial sector, which include virtual currencies and — like their kind of cryptocurrency. The cryptocurrency status is not defined, however, there is the prospect of normative fixing it on the territory of the Russian Federation.
This article is devoted to the consideration of issues related to the legal regulation of cryptocurrencies in the Russian Federation and some foreign countries. In the course of the study, the features of cryptocurrencies were highlighted, various approaches to the definition of this category were considered, some aspects of the legal regulation of digital currencies were analyzed. It has been determined that the rules of financial law regulate a whole range of public relations related to the use of cryptocurrencies and the complex regulation of this institution is necessary. The author came to the conclusion that it is necessary to use digital technologies and digital currencies in the Russian economy in the future. At the same time, this is a complex and not an instantaneous process of transition to digital currencies; a clearly thought-out strategy for the development of legislation in this area is necessary.
The articles focuses on opportunities and problems connected with implementation of smart contracts into “over-the-counter” derivatives trading. The importance of success of professionals who work on this cannot be underestimated: the volume of “over-the-counter” derivatives market is huge, its automatization and transparency provided by implemented smart contracts could dramatically increase its economic efficiency. In this study, the author aims at answering the following question: what aspects of “over-the-counter” derivatives trading could take a quantum leap because of the implementation of smart contacts and, per contra, what aspects could not benefit from implementation of underlying technologies at all. The author starts with the overview of “over-the-counter” derivatives market, investigates the matter of its internal design, main features and the structure of legal documentation used by market participants. Then the article provides the analysis of smart contract phenomenon, summary of its engineering aspects and difficulties connected with the implementation of smart contracts as a practical matter, including underlying legal issues. The third part is a synthesis of ideas indicated in previous parts. Herein the author examines the perspectives of adoption of smart contracts in “over-the-counter” derivatives trading, identifies the problems that cannot be resolved yet: different parts of legal relations existing between market participants shall be structured in a flexible way and shall be subject to revision under specific conditions. Smart contracts in their turn cannot be considered as a flexible tool and the revision of their terms requires the input from highly experienced specialists that dramatically increases the costs of their implementation and maintenance. As a matter of conclusion, the author gives recommendation to potential developers of smart contacts to implement them only in relation to the automatization of payments and deliveries as at the moment the clearing can be considered as the most appropriate area for the implementation and use of smart contracts.
Elena Kirillova, Богдан Варвара Владимировна, Petr Filippov, Valentin Tkachev · 5 authors
This article discusses the main features of the classifications of blockchain technologies. Ten years after the first blockchain appeared, this technology is still largely experimental. It is difficult to predict the future of the blockchain industry and the technology itself with confidence, but its certain outlines are already emerging. The purpose of the study is to consider the classification of blockchain technologies and analyze the problems that arise when using these technologies. When writing the article, the authors used methods of collecting and studying individual facts, generalization, scientific abstraction, cognition of laws, as well as the methods of objectivity, concreteness, and pluralism. It has been proved that the legal regulation of blockchain technologies should be carried out through the development of uniform world standards and that prohibitions and restrictions on certain types of activities should be systematized and regulated at the international level. The study has concluded that three types of blockchain are used: public blockchains with open access (public blockchains), private blockchains with open access (consortium blockchains), and private blockchains with closed access (fully private blockchains). Following this typology, the authors have highlighted the main features of each blockchain category.
Objective: to consider the evolution of types and forms of money, to classify the varieties of cryptocurrency and its functions, to explain the mechanisms for issuing and circulation of cryptocurrencies, as well as to identify problems in the field of legal regulation of digital virtual currencies in the Russian Federation.Methods: the work used a dialectical combination of the principles of a systematic approach and various ontological knowledge through a range of methods of historical, empirical, comparative, logical, statistical and predictive cognition.Results: it is shown that the modern global monetary system is evolving towards decentralization; it is based on cryptocurrencies issued as part of a functional combination of public and private blockchains; cryptocurrencies require full legalization, not prohibition at the legislative level; cryptocurrencies are types of digital virtual assets accounted for on accounts (crypto wallets) identified within.Scientific novelty: for the first time, the article shows that it is erroneous to consider cryptocurrency to be just a property and to limit its operations just to cross obligations for transferred goods and rendered works (services). Cryptocurrencies are decentralized virtual money based on mathematical algorithms using open-source asymmetric cryptography techniques and consensus-based platforms. Users need both external (cryptocurrency) and internal (tokens) currencies to increase the efficiency of using traditional assets (property, goods and services) in the economy.Practical significance: the main provisions and conclusions of the article can be used to develop a glossary, terms and definitions of cryptocurrency, mechanisms for regulating its issue and circulation in Russia, as well as making amendments to the draft law “On digital currency and amendments to certain legislative acts of the Russian Federation” that are adequate to the economic nature of cryptocurrency.