The authors enumerate and analyze key challenges that global financial and legal systems face in connection with the introduction of cryptocurrency. They present definitions of cryptocurrency used in international and Russian practice. The authors also study the court practice on crimes involving the use of bitcoins and examine the approaches to determining the legal status of cryptocurrency in foreign countries and in the Russian Federation. It is stated that at present the international regulatory practice lacks a common universal document that would regulate the use of digital (electronic) currencies. At the same time, a considerable number of foreign countries have already worked out their attitudes to virtual currency — ranging from the absolute prohibition of all operations to stimulating mining and payments in cryptocurrencies. The authors identify five key approaches to regulating the market of cryptocurrencies in international practice. They outline multiple risks connected with the partial substitution of official means of payment by cryptocurrencies. It is stated that in our country cryptocurrencies and operations involving them are now beyond the scope of law because cryptocurrencies are not recognized as an object of legal protection. However, a number of draft laws that regulate the issue and turnover of «virtual assets» are to be adopted in the near future. The authors identify key prerequisites for the use of effective regulatory approaches to operations with cryptocurrencies and the directions for the creation of a normative legal base for such operations in the Russian Federation. It is important to take measures and prevent the use of cryptocurrencies for the financing of criminal activities and terrorism. The authors use the analysis of the normative legal basis of the Russian Federation, existing theories and their own considerations to recommend an introduction of a favorable regime of cryptocurrency market regulation by implementing the best international practices whose essence (in general terms) is reflected in the clauses of this article.
Reilly White, Yorgos Marinakis, Nazrul Islam, Steven T. Walsh
Cryptocurrencies such as Bitcoin have fascinated technologists and investors alike. They have become prevalent, with over 2,000 Bitcoin-like cryptocurrencies now in use. Most jurisdictions have not regulated cryptocurrencies. Whether existing regulations apply to cryptocurrency turns ultimately on if we classify cryptocurrencies as currencies, securities, or derivatives, or a money services (transfer) vehicle. In this set of exploratory analyses we seek to classify Bitcoin. We utilize a variety of methods to compare aspects of its behavior to: currencies, asset classes such as derivatives, technology-based products and possible technology-based products such as Ether and the security SPY, and speculative financial bubbles. We find that Bitcoin's behavior more closely resembles a technology-based product, an emerging asset class, or a bubble event, rather than a currency or a security; such that it is correct that existing currency and security laws should not apply to cryptocurrencies.
The article is devoted to the problems of qualification of various types of theft of cryptocurrency, theft of funds committed using cryptocurrency. The article deals with crimes related to the illegal sale of drugs for cryptocurrency and raises the question of the absence in the act of the offense under article 1741 of the Criminal code of the Russian Federation. The author studies the concepts of cryptocurrency and property within the framework of existing scientific opinions and analyzes the versatile judicial practice, which, in particular, tends to classify cryptocurrencies as types of property. The goals and objectives of the study are to determine the range of features and properties of the objects of crimes committed with the use of cryptocurrency, as well as committed against the cryptocurrency as an object of infringement. In the preparation of the article, mainly formal logical methods were used, as a result of which the author analyzes social and legal phenomena. The author concludes that the main feature of the evaluation of the object of crimes in sphere of circulation of cryptocurrency, is the presence of his property and cost characteristics, the possibility of determining the damage for the proper qualification of the offense. It is concluded that cryptocurrency may be the subject of corruption offenses on the basis of scientifically substantiated opinions about the presence of the paid nature of the benefit provided by the cryptocurrency. It is argued that the actions associated with the sale of narcotic drugs and psychotropic substances for cryptocurrency and subsequent actions to transfer cryptocurrency to Fiat money do not form part of the crime providing for liability for the legalization of proceeds from crime.
The use of citizens` and legal entities` personal information is crucial for the protection of human rights at the current stage of society and information technology development. On the one hand, a high-quality system of processing and using this information can increase the level of citizen participation in government-making processes and assist on creating a human-centric approach in public administration, when the state will have all the necessary information to serve citizens (providing of all administrative services online, use of analytics to improve infrastructure, etc.). On the other hand, misuse and unauthorized access to personal data can lead to violations of citizens' rights, corruption and excessive bureaucracy in administrative procedures.At the same time, approaches to the protection of personal data should be not formal, but purely practical. The state policy should be based on the solution of real problems, which often require a complete revision of the systematic approaches, in this case the infrastructure of the state registers.Modern information technologies make it possible to implement large-scale changes in the business processes of collecting, storing and processing personal data of citizens. Moreover, such approaches make it possible to reduce bureaucratic burdens and minimize corruption risks.Distributed registry technology is a popular solution for improving the performance of government processes and enhancing eGovernment in the country. However, its application requires a proper assessment of the problem and its origins, as well as the outcomes that should be achieved
Elena B. Zavyalova, Ekaterina I. Shumskaia, Alexandra I. Shumskaia
Introduction. Smart contracts have become demanded agreements in the modern market with the development of crypto-currency due to their ability to provide and guarantee enforcement. To date they are performed automatically using blockchain technology. Smart contracts are the subject of debate in many countries, primarily because issues have arisen in their legal enactment in the field of regulation of digital assets and the legal recognition of blockchain technology itself, which determined the purpose of this scientific research. For the purpose of a deeper understanding of the essence of this type of agreements, a historical method has been applied in the work on the features of the formation of smart contracts. To identify key differences, a formal legal and comparative analysis of smart contracts with classical contracts in electronic form was carried out. The areas of application of smart contracts in the world and in Russia, such as banking, healthcare, insurance and public services, were also studied. Materials and methods. The methodological basis of the study was made up of the following general scientific and special methods of cognition of legal phenomena and processes, including systemic, historical, formal legal, comparative and analytical approaches. Results. An assessment is made of such contracts from the point of view of the existing civil law of the Russian Federation and further directions for study and development are proposed, including the improvement of the regulatory and institutional environment to maintain legal certainty. Discussion and conclusion. The existing legal regulation does not prohibit the use of smart contracts in the business practices of companies and individuals. But the simplicity of the transaction implementation algorithm built on the blockchain still requires some legal support.
The topicality of the topic is connected with the growing role of culture in the state administration of Russia. According to the forecast of the long-term socio-economic development of the Russian Federation until 2030, culture is a priority area of state support to ensure the maximum possible access of citizens to cultural values and education in the sphere culture, as well as the preservation of works of culture and art. Museums, as objects of storage and demonstration of cultural values, are an integral part of cultural policy. The state policy in the museum area consists of financial support, provision of professional staff, improvement of the legal and regulatory framework, coordination of the activities of federal and regional authorities in relation to museums. Museums are a complex and specific area of public policy and governance, as each institution has different values in importance, different possibilities of self-financing. Therefore, it is impossible to apply the same criteria to all state museums that determine its effectiveness. The article examines the main models of state cultural and museum policy in the field of protection, disposal and use of cultural monuments, reveals the specifics of the legislative framework and organizational and economic support. The conclusions are drawn that the combination of centralized and decentralized management of the museum sphere, the elimination of the contradictions of the legal and legal framework in the museum and cultural sphere, the creation of a mutually beneficial mechanism of public-private partnerships will provide the most effective model of cultural and museum policy for the protection of cultural monuments.
Prosecutor's Office of Moscow Region, Madina M. Dolgieva
ПРОТИВОДЕЙСТВИЕ ЛЕГАЛИЗАЦИИ ПРЕСТУПНЫХ ДОХОДОВ ПРИ ИСПОЛЬЗОВАНИИ КРИПТОВАЛЮТЫРассматриваются рекомендации Группы по разработке финансовых мер борьбы с отмыванием денег и финансированием терроризма, которая с 2018 г. приступила к разработке обязательных правил регулирования криптовалютных бирж и обменников.На основе исследованных рекомендаций обосновывается вывод о необходимости включения в уголовный закон нормы об ответственности за неправомерный оборот криптовалюты, вследствие чего нормы
Introduction: the paper is devoted to a new phenomenon in business activity in the conditions of IT development that contribute to the creation of secure contractual relations on the Internet on the basis of transactions executed through smart contracts. The author notes that the need for amendments that could fill the loopholes in the current legislation is obvious. And, first of all, it concerns Blockchain technology – the algorithm that mediates the safe development, conclusion and execution of smart contracts. Blockchain technology is considered in the paper as one of the safest means for concluding and executing smart contracts. The author argues that the study of the concept, legal nature and essence of smart contracts is relevant in the light of spreading their share in the total array of transactions in the world economy in conjunction with the changing domestic legislation governing the relevant sphere, as well as the international integration processes affecting the intensification of foreign economic activity of the Russian Federation. The smart contract concepts formulated by the Russian legislator in the process of upgrading the array of statutory regulation under conditions of economy digitalization are studied and compared. The features of conclusion and protection of the smart contract in the civil legislation of the Russian Federation are analyzed. In order to fully articulate the concept of the smart contract, reflecting its essence, functional purpose and legal nature, it is proposed to create a special law that would focus on the conclusion and implementation of “the smart contract” and the specification of the general norms of the civil code. At the same time, the norms of other special laws would supplement and correct the provisions fixed by this act depending on the sphere of managing and the legal regulation branch. The concept of the smart contract is formulated; its value for economic and contractual activity, and also the advantages and disadvantages of its application are established. The possible classifications of smart contracts are given.
Elena Kirillova, Богдан Варвара Владимировна, Igor B. Lagutin, Evgeniy Dmitrievich Gorevoy
This article using critical analysis discusses the legal status of smart contracts, their features and characteristics, and the possibility of introducing this category into the legal field. The main goal of the study is to determine the legal status of smart contracts. The study concludes that a smart contract is a program code based on blockchain technology, which, by legal characteristics, is a legally significant message recorded in a language (artificial language) and sealed with an electronic digital signature of each of the parties (or certified with a special key). It is proved that the multilateral interactions implemented through smart contracts can reduce the costs of operations and control them, increase the speed of operations and reduce the risks associated with dishonest actions of the parties, minimize or completely exclude intermediaries from the transaction; therefore, legislation should provide for the possibility of using smart contracts along with existing contracts.
The article investigates by etymological and legal analysis the origin of the institution of obligations and risk management, for centuries in the process of formation of Russian law.
Within the framework of this article, the authors carry out the study of the design of the smart contract in the context of jurisprudence and technical sciences. The paper analyzes the legal nature of the smart contract and the issues concerning the scope of application (in relation to distributed ledger technology). The authors conclude that the category of “smart contract” can be defined in technical and legal aspects. In foreign literature, there are two categories: a legal smart contract and a smart contract code (or smart contract). The smart contract as a technical phenomenon represents a computer code that allows automated fulfillment of obligations. From legal point of view, the approaches to the definition of the smart contract depend primarily on the fact that the authors rely on the possibility of using smart contracts only within the framework of distributed ledger technology or other information technologies. At the same time, the majority of authors share the view that the smart contract exists exclusively in relation to the technology of distributed ledgers, namely, the blockchain. The article proposes to define the smart contract as a standard (special) contractual design — a contract concluded by electronic or other technical means, under the terms of which performance of the obligation is carried out without directed explicit additional expression of will (under Part 2 of Article 309 of the Civil Code of the Russian Federation). The article states that the smart contract cannot be qualified as an independent way of ensuring the performance of obligations. Such qualification is possible only if the functional approach to understanding security is applied. The paper examines the main fields of application of smart contracts and possible risks of their application (in terms of statement of terms of agreements in relation to a programming language; in respect of necessity of compliance with such fundamental principles of civil law as legality, fairness, protection of the weak; the need for communication with public authorities and notaries, as well as risks of using smart contracts in relations involving the participation of consumers). A separate set of questions concerns the protection of the rights infringed due to the use of smart contracts.
While Ethereum run in public networks which make the blockchain size large and transaction run time longer than time for private or national network, that led to continuous worries over the expanding size of Ethereum Blockchain, which certainly reduce Cryptocurrency's effectiveness. The estimations were on increase and believed it would cross the node limit of 1 TB terribly shortly. If new consumer a full node enters to that blockchain and cryptocurrency world, a node is a computer software cum database of the blockchain, which a full node client must download on their personal computers to become a full node in the blockchain. in this way, the client can be verifying transaction on the network with the help of other nodes on the system. We proposed to implement national cryptocurrency which developed using Ethereum as a development platform that could serve national or regional people that has limited or slow internet connections like Iraq, in addition payments in countries with unstable fiat currencies, although cryptocurrencies are suffering from unstable exchange rates against fiat currencies, the use of national cryptocurrency instead of the native fiat cash could even be a far better alternative for individuals in certain countries like Iraq, Iran and Syria, with high rate of inflation. The reminder of this paper is arranging as following: an introduction, the advantages and drawbacks of cryptocurrencies, Background on Blockchain and Ethereum, implementation, results and conclusion.
Антон Назаров, Vladislav Shvedov, Vladimir Sulimin
Abstract Progressive technologies associated primarily with the use of the latest information systems are developing very quickly and are being introduced in the modern world. Recently, such phenomena as cryptocurrency and the smart contract, functioning thanks to the blockchain technology, have become very popular. The application of this technology is used in many areas: information technology, law, state, and municipal administration, etc. This article discusses the mechanisms of functioning and features of the latest Internet technologies in the context of the agro-industrial complex of Russia. Their practical significance for optimizing the relationship between the seller and the buyer has been investigated. The advantages of the blockchain for all market participants when using technology in the supply of agri-food products are justified. The research shows the possible difficulties and shortcomings of the existing content system, gives recommendations on the use of the blockchain and its evaluation for domestic producers of agricultural products. The authors propose a mechanism for using the blockchain technology in agriculture, which will change the existing practice of trade and settlement transactions between counterparties of the agricultural market.
In the paper, the authors formulate a multidimensional concept of «cryptocurrency», which takes into account the technical, economic and legal nature of cryptocurrencies. In addition, the paper defines the relationship of the concepts of «cryptocurrency» with such commonly used terms as «digital currencies», «virtual currencies» and «electronic money». The authors understand cryptocurrencies as a kind of digital money, which is the result of the functioning of the corresponding computer program (digital code). Cryptocurrencies are created using the appropriate Protocol, operating in a decentralized manner, with the use of the blockchain technology. If the issue has a centralized issuer while maintaining other features inherent in these cryptocurrencies, then it is possible to talk not about cryptocurrencies, but about the issue of electronic money. The main difference between electronic money and cryptocurrencies is the presence of electronic money of the Central Issuer and the lack of it in cryptocurrencies. Another important difference between cryptocurrencies and electronic money is the way they are issued and stored. Cryptocurrencies are stored and issued in a decentralized manner, while the information about electronic money and transactions with them can be centralized on one server. There are also other differences, such as the mandatory use of asymmetric cryptographic encryption when creating cryptocurrencies, etc. Being digital money, cryptocurrencies at the same time are a kind of digital property that performs the functions of a means of payment in the society, does not have a physical form, that is, can not exist in the form of coins or banknotes. The authors support the addition of art.128 of the Civil Code of the Russian Federation with a new object of civil law (digital money) in the context of improving the draft law «On digital financial assets».
The author examines the features of the use of smart contracts in transactions in virtual property, taking into account the fact that the smart contract is a way of fulfilling those obligations in which the transfer of property provision takes place in the virtual world with the help of appropriate technical means. It should be recognized that the list of virtual property is open, at the moment it includes, for example, cryptocurrency, domain names, «game property», virtual tokens. The question of the legal nature of objects related to virtual property is relevant: are they a new independent type of property requiring special legal regimes, or are they a form of known property rights? The paper also notes that smart contracts differ in both vulnerabilities in computer code and insufficiently effective legal regulation. Smart contract, in the opinion of the author, is a kind of written (electronic) form of a contract, the peculiarity of which is that the will of the subject is expressed by means of special technical means in the form of program code. In this case, the will to conclude the contract simultaneously means the will to its execution upon the occurrence of certain conditions of the contract circumstances. In conclusion, the author shows that the automation of performance of obligations in particular and the digitization of contract law in general should not create obstacles to the implementation of the fundamental principles of good faith and contractual justice, to assess the proportionality of the distribution of rights and obligations of the parties, the equivalence of their property.
In order to develop the digital economy in the Russian Federation, the Program «Digital Economy of the Russian Federation» that is aimed, inter alia, at the formation of a regulatory framework for the legal regulation of new relations in the field of digital economy, was approved by the Decree of the Government of the Russian Federation No. 1632-r of July 27, 2017. Particularly relevant in this regard is the issue of cryptocurrency and bitcoin legal regulation. The article deals in detail with a special type of cryptocurrency, namely: bitcoin. The author analyzes the main problems associeted with the necessity of legal regulation of cryptocurrencies. The conclusion is made that legal regulation of cryptocurrency as a means of payment requires a complex approach and it is impossible without due regatd to the peculiarities of legal regulation of bitcoin. The paper provides for the interaction between the concept of bitcoin and other key concepts, namely: virtual currency and digital currency. The author concludes that it is necessary to create a non-governmental self-regulatory organization supported by the State in order to protect the interests of the cryptocurrency business. Since legal regulation of cryptocurrencies is global in its nature, the article examines the foreign experience of legal regulation of cryptocurrencies and their types.
The article examines the legal status of cryptocurrencies in Russia. The authors study the civil and criminal law aspects of this phenomenon. The legislation does not define the legal status of cryptocurrencies, while the theory of law and court practice have not yet worked out a unified approach to it. The authors present an overview of the existing positions regarding this issue and suggest that cryptocurrency should be regarded as other property. It is stated that whatever position is incorporated into law, in real life cryptocurrency is in global circulation and has a great potential. As for criminal law, the authors show that it is relatively independent from civil law when dealing with issues within its object. It is suggested that, for the purposes of criminal law, the available instruments should be adjusted to enable a prompt reaction to the crimes committed at the present moment. The authors analyze the possibility of recognizing cryptocurrencies as an object and instrument of committing crimes within the framework of current legislation. Using the examples different crimes, the authors demonstrate that cryptocurrency could act as an instrument of committing them. It is also stated that cryptocurrency could be recognized as an object of some crimes. To support their position, the authors present such arguments as crimes of terrorism, illegal trade in drugs and psychoactive substances, economic crimes and some others. They also discuss cryptocurrency as an object of theft. It is proven that there is a practical necessity to recognize cryptocurrency as an object of theft. Criticism of this approach by some researchers is also discussed. The authors, however, show that it is possible to solve this problem positively. They conclude that current Russian and foreign legislation should be amended and should define the legal status of cryptocurrencies; however, the goal of criminal law could and should be achieved even before these amendments are adopted.
O.S. Bolotaeva, Алла Степанова, Світлана Алексеева
This article examines the legal nature of cryptocurrency. Comprehensive analysis is conducted on the legal nature of digital currency; its correlation with the traditional money and e-money is determined. The author summarizes and systematizes the opinions of the scholars on these issues, as well as the existing legislation. The object of this research is the public relations arising process of functionality of crypto technologies and with regards to such the phenomenon of cryptocurrency in Russia. The subject of this research is the Constitution of the Russian Federation, normative legal acts that comprise the current legislation of the Russian Federation, as well as scientific works dedicated to the public relations in this sphere. The goal lies in examination and revelation of the financial legal essence of cryptocurrency, its legal nature and role among the objects of civil rights. The conclusion is made that the states will act towards the implementation of cryptocurrency into the economy. Digital currency is a promising trends of development and investment. The question of legal regulation and consolidation of the status of cryptocurrency remains important and relevant for not only Russia or any country, but the entire world community. The economy that is based on cryptocurrency has good chances to become a reality on the global scale.
The paper considers the opinions of domestic and foreign authors on the concept of cryptocurrency, the principles of its operation and the need to establish its legal status. The author’s definition of cryptocurrency is formulated and the thesis that cryptocurrency can be classified as «other property» is justified. The author analyzes the most common court decisions in criminal cases. Based on a study of foreign experience in the fight against illegal circulation of cryptocurrency, it was found that initially, before the emergence of mass demand for cryptocurrency all over the world, demand for them was observed in the criminal environment to pay for the supply of narcotic drugs and weapons, to finance terrorism and legalize (launder) income obtained in a criminal manner, in connection with which many people subsequently mistakenly assumed that transactions with cryptocurrencies are anonymous. Meanwhile, the cryptocurrency is far from being anonymous: each transaction carried out in a distributed network is permanently recorded in a public blockchain, which helps to solve crimes in this area. The adoption in the Russian Federation of a fundamental law containing the necessary terms and concepts regarding cryptocurrency activities and regulating the status of cryptocurrency in Russia will further develop measures for the criminal law protection of objects of encroachment that are currently not regulated in any way.