The article discusses the controversial issues of the legal nature of self-executing transactions. It is proved that a smart contract is an algorithm that automates the execution of legally signifi cant and actual actions, subject to constant monitoring in accordance with the agreement of the parties and the regulatory requirements embedded in the program code. The use of digital tools for recording expressions of will, including software algorithms that create convincing evidence of the validity of an agreement, is being investigated. The authors conclude that a smart contract cannot be considered an independent form of contract, as a special algorithm, it helps automate the fulfillment of obligations under constant control and in strict accordance with the terms of the agreement embedded in the program code.
The rapid digitalization of wealth in the form of cryptocurrency and virtual assets has dramatically transformed the results of the matrimonial conflicts and alimony payments. With the gr owing adoption of decentralized and pseudonymous digital assets as constituents of individual financial portfolios, family courts face new issues in their classification, disclosure, valuation, and enforcement. The legal issues discussed in this paper include the legal complications of cryptocurrency as marital property, the risk of concealing assets through blockchain anonymity, and challenges of valuation, associated with the excessive price volatility, tax exposure, enforcement challenges linked to the control of private keys, and jurisdictional challenges across borders. It also examines new legal and forensic systems and contractual protection mechanisms that are intended to manage these issues. The paper claims that although the classical tenets of equitable allocation and full disclosure are still underpinning, the concept of clarity in the law and judicial flexibility is needed to provide equal justice, openness, and enforceability of the divorce process concerning cryptocurrency and virtual possessions.
The concept of alternative finance is explored from a narrow and broad perspective. The latter defines it as segments of "gray" financial markets, outside the scope of regulation and traditional finance. "Dark" liquidity poolsâtrading transactions of major players in securities and currencies, operating anonymously, opaquely, and hidden from the public in the over-the-counter space through automated digital trading platformsâare presented as one element of the alternative finance system. The advantages and disadvantages of "dark" pools for financial market participants and exchange infrastructure are discussed. The problem of liquidity fragmentation caused by "dark" pools is highlighted, a problem inherent in decentralized finance, where liquidity is not concentrated on a single platform or trading system, but distributed among many. Emphasis is placed on the insufficient or complete lack of oversight and regulation of this alternative financial market segment. Examples of legislative and regulatory acts in a number of countries are provided.
This paper examines the most common smart contracts security issues included in the OWASP Smart Contract Top 10. The purpose of the study is to synthesize a set of recommendations that can help eliminate these key weaknesses or mitigate associated risks. The relevance of this research stems from the rapid development of Web3 technologies, particularly the expanding use of smart contracts. According to various estimates, this market is expected to grow at a CAGR of approximately 25% in the medium term. Furthermore, another factor contributing to the relevance of this topic in Russia is the lack of comprehensive regulation for this class of instruments, especially concerning security requirements and compliance verification. This paper proposes a smart contracts lifecycle model best suited to the research context, describing each stage with particular attention to its impact on security. Existing security weaknesses classifiers specific to smart contracts are identified, with a detailed review of the ten most common vulnerability classes. Based on this review, recommendations are provided to prevent these vulnerabilities or mitigate their associated risks. The findings can be applied by both smart contract developers and security auditors. Additionally, the presented materials contribute to the development of a methodological framework for addressing regulatory issues in the industry.
Abstract The 21st century digital transformation and rapid development of blockchain technology create fundamentally new challenges for legal regulation. The increasing popularity and economic significance of cryptocurrency as a digital asset makes its legal qualification and, consequently, regulation within the framework of inheritance law relevant. The global cryptocurrency market capitalization already reaches trillions of dollars, and millions of individuals and legal entities use crypto assets as an investment instrument, payment method, and value storage mechanism. From this reality, critical legal questions arise about inheritance in cases of cryptocurrency holders’ death. The complexity of the problem is determined by the unique characteristics of cryptocurrency: decentralized nature, cryptographic protection, private key system, and high degree of anonymity create specific difficulties for heirs’ access to and identification of these assets. This research analyzes the current state of cryptocurrency inheritance legal regulation using comparative legal methods, identifies existing problems, and develops recommendations for improving legal regulation based on international experience from the USA, Germany, Japan, South Korea, and Australia.
The development of blockchain technology has introduced smart contracts as a new form of automated commercial agreement. Smart contracts are self-executing programs that perform contractual obligations when predetermined conditions are met, reducing the need for intermediaries and increasing efficiency in commercial transactions. Their growing use raises important legal questions regarding their validity and enforceability under existing legal systems, particularly under U.S. commercial law. This article examines the legal nature and enforceability of smart contracts within the framework of United States commercial law. It analyzes whether smart contracts satisfy the essential elements of contract formation, including offer, acceptance, consideration, and mutual assent. The article also explores the applicability of the Uniform Commercial Code (UCC) and its role in recognizing electronic and automated agreements. The article concludes that smart contracts can be legally enforceable under U.S. commercial law if they meet traditional contract requirements. Existing legal principles are flexible enough to accommodate smart contracts, making them a reliable tool for modern digital commerce.
The article is devoted to the study of mechanisms for managing reputational risks in decentralized autonomous organizations (Decentralized Autonomous Organizations â DAO) operating on the basis of blockchain technologies. The relevance of the research is determined by the rapid development of decentralized digital ecosystems, the spread of algorithmic governance models, and the need to ensure trust among participants in an environment where traditional institutional mechanisms of centralized control are absent. Under such conditions, the issue of reputational risk management becomes particularly important, as the level of trust directly affects the stability and sustainability of decentralized organizations. The aim of the study is to identify and substantiate mechanisms for managing reputational risks in decentralized autonomous organizations based on blockchain technologies, taking into account the specific features of their functioning and the principles of decentralized governance. The methodological basis of the research includes methods of systemic analysis, institutional approach, comparative analysis, and modeling. To identify the key factors shaping reputational risks, the study employs the analysis of contemporary scientific publications, generalization of DAO project practices, and examination of digital governance tools within blockchain ecosystems. As a result of the study, the main sources of reputational risks in decentralized autonomous organizations were systematized, including information asymmetry among participants, insufficient transparency of decision-making procedures, technical vulnerabilities of smart contracts, and potential manipulation of voting mechanisms. The key mechanisms for managing reputational risks in the DAO environment were generalized, including participant reputation evaluation systems, transparent decentralized voting mechanisms, smart contract auditing, and moderation tools for digital communities. Based on the conducted analysis, a conceptual model for managing reputational risks in DAO was developed, which provides for the integration of blockchain transparency tools, collective control mechanisms, and procedures for evaluating the reputational behavior of participants in digital ecosystems. The scientific novelty of the study lies in substantiating a conceptual approach to reputational risk management in decentralized autonomous organizations, which combines the capabilities of blockchain infrastructure with self-regulation mechanisms of decentralized digital communities. The practical significance of the obtained results lies in the possibility of their application by developers of DAO projects, blockchain platforms, and digital ecosystems for the development of reputational risk management systems, increasing the level of trust among participants, and ensuring the stable functioning of decentralized organizations.
The article examines digital asset inheritance in Web3 ecosystems, where the economic value of cryptocurrencies, NFTs, tokenised assets, cloud-stored intellectual property and high-value platform accounts is not supported by sufficiently reliable legal and technical mechanisms for intergenerational transfer. The relevance of the topic is determined by the fact that traditional inheritance law is oriented mainly toward tangible objects or documented property rights, whereas blockchain-native assets depend on private keys, platform accounts are restricted by terms of service, and the cross-border nature of digital portfolios complicates the determination of applicable law. The purpose of the study is to develop an integrated conceptual model of the Self-Sovereign Digital Heritage System (SSDHS), combining self-sovereign identity, decentralised identifiers, verifiable credentials, digital safes, smart-contract execution of inheritance conditions and regulatory compliance. The methodological basis includes comparative legal analysis, system analysis, functional modelling, conceptual design and regulatory impact assessment. The article substantiates a six-layer SSDHS architecture consisting of the identity layer, digital asset inventory layer, secure storage layer, blockchain layer, inheritance execution layer and legal compliance layer. It is shown that SSI addresses the problem of cryptographic heir authentication, whereas the digital safe ensures secure preservation of private keys, inheritance instructions, DID material and the digital testament. A comparative analysis of the regulatory frameworks of the United States, the European Union and Ukraine is conducted, including fiduciary access to digital assets, electronic wills, digital identity, crypto-asset markets, personal data protection, virtual assets and electronic identification. The study substantiates that SSDHS can serve as a legal-technological reference model for reducing the risk of digital asset loss caused by inaccessible private keys, improving heir identification reliability, reducing dependence on centralised intermediaries and preparing future legislative solutions for digital heritage.
This paper examines the dynamic spillovers between the VIX stock sentiment index, the Cryptocurrency Fear & Greed Index, and the returns of leading high-tech firms from 2018 through 2024. We quantify the direction and magnitude of spillovers between these variables by applying the Quantile Vector Autoregression (Q-VAR) model across lower, middle, and upper quantiles. Results indicate a stronger connection between technology firms and the VIX, with tech stocks being more influenced by cryptocurrency fear during the COVID-19 pandemic. These findings highlight the growing influence of technology firms upon financial markets, particularly during periods of heightened uncertainty in traditional markets and increased volatility in digital assets, reflecting their continually growing role in the evolving digital financial landscape. ⢠Examines the influence of cryptocurrency fear on major tech firms from 2018 to 2024. ⢠Applies Quantile-VAR model to analyse sentiment-driven volatility spillovers. ⢠Highlights stronger spillovers from traditional stock fear than cryptocurrency fear. ⢠Reveals tech stocksâ resilience during periods of high market and crypto volatility. ⢠Identifies technology firms as key intermediaries in evolving digital financial markets.
The article examines digital payment tokens circulating in decentralized finance. The aim of the study is to de-velop a typology of digital payment tokens for their subsequent adaptation to the cross-border payment infra-structure as a specific payment token type that meets the necessary economic characteristics. The objectives of the study include an overview of the key innovations that led to the emergence and spread of decentralized finance, an analysis of the capabilities and advantages of smart contracts for creating digital tokens, a systema-tization of approaches to the regulatory framework for unsecured cryptocurrencies and stablecoins, and the selection of the optimal type of digital payment token for use in a cross-border payment infrastructure based on distributed ledger technology. The results of the study include a developed typology of digital payment tokens based on their suitability for use in a cross-border payment system. The study concludes that, in order to elimi-nate the fragmentation of national legislation that hinders the use of digital payment tokens in cross-border payment infrastructure, it is advisable for national regulators in countries participating in the unified cross-border payment space to focus their attention on the development and implementation of harmonized regula-tion of stablecoins.
Crypto currency has emerged as a transformative innovation in the global financial ecosystem, offering decentralized, borderless, and technology-driven alternatives to traditional monetary systems. Built on block chain technology, crypto currencies provide opportunities such as faster cross-border transactions, reduced transaction costs, enhanced financial inclusion, and new investment avenues. They also promote transparency and security through distributed ledger systems. However, alongside these benefits, crypto currencies pose significant regulatory and legal challenges. Issues such as price volatility, lack of investor protection, cyber security risks, money laundering, tax evasion, and the absence of a unified global regulatory framework create uncertainty for governments and financial institutions. Policymakers across countries face difficulties in balancing innovation with financial stability and consumer protection. This study explores both the opportunities presented by crypto currency adoption and the major regulatory challenges that hinder its integration into the mainstream financial system. The paper highlights the need for coordinated international regulations, technological safeguards, and policy measures to ensure sustainable and secure growth of the crypto currency market
The sudden growth of cryptocurrencies has created a set of intricate regulatory and legal issues for the financial and governance system of India. The decentralized nature of digital currencies like Bitcoin and Ethereum challenges the conventional monetary system, giving rise to concerns about their legal status, protection of investors, taxation, and overall financial stability. This paper critically analyzes the regulatory environment in India, especially in the wake of the 2018 circular issued by the Reserve Bank of India and its subsequent strike-down in the case of Internet and Mobile Association of India v. Reserve Bank of India. It also discusses challenges with respect to money laundering under the Prevention of Money Laundering Act, 2002, taxation of virtual digital assets, and the lack of a comprehensive statutory regulatory framework for cryptocurrency exchanges. The paper contends that the current stance of India is one of regulatory ambivalence, vacillating between control and tolerance.
DLT and several other technological elements such as smart contracts, digital wallets, oracles, and so on in the context of financial markets, are leading to the emergence of very different phenomena which require, first of all, to be understood and then, inevitably as their importance and volume grow, regulated and supervised, to ensure the stability of the market and the protection of its investors. At the international level, the Financial Stability Board is advancing a global regulatory framework grounded in the principle of âsame activity, same risk, same regulationâ, aiming to ensure consistent and comprehensive regulation of crypto-asset activities and stablecoins relative to the risks they present, while also fostering responsible innovation prompted by technological advancements. The European Union is actively addressing regulatory challenges in the crypto space, employing distinct approaches to different categories of cryptoassets, depending on whether DLT technology is used in the context of non-fully decentralized finance, rather than in DeFi itself, which currently lacks effective regulation within the European Union. Greater problems from a regulatory perspective, however, are posed by the phenomenon of DeFi, which entails a more significant disintermediation. For this reason, even at the European level, this is undoubtedly the area that poses the most significant problems for market and investor protection. Keywords: decentralized ledger technology, crypto-assets, regulation, DeFi, investor protection.
The growing popularity, the exponentially expanding market size, and the volatility of Cryptocurrency are gaining the attention of all, whether it is investors, policymakers, miners, or academicians. So, this paper has used Bibliometric analysis to explore the existing works of literature in the area of Business, Finance, and Economics. We have reviewed and analysed 1344 articles extracted from the Web of Science core collection, Clarivate Analytics of the period from 2011 to mid-2022 using VOSviewer and Biblioshiny (Biblimetrix: R package) analytical tools. This paper has presented citations, publications, and the impact of sources, documents, authors, organizations, countries, etc., along with their relationships with the help of tables, charts, and network diagrams. The analysis shows exponential growth in the last 4-5 years. Bitcoin and Cryptocurrency (or Cryptocurrencies) are the most frequent keywords. With many ups and downs, cryptocurrency is maintaining its pace with a gradual increase in its acceptability worldwide.
The dissertation examines statistical arbitrage methods in the cryptocurrency markets using cointegration analysis on Bitcoin, ethereum, Litecoin, Ripple using daily price data of the cryptocurrencies between January 2022 and October 2024. The research deploys strict econometric procedures, such as the Engle-Granger two-step process and Johansen test, to uncover and take advantage of the mean-reverting relationships between the key cryptocurrencies. Findings indicate that there are strong relationships of cointegration especially between Bitcoin-Ether and Ethereum-Litecoin with the relationship between Bitcoin-Ether and Ethereum being very stable in many market regimes. The statistically arbitrage strategies depending on such cointegrated pairs led to large risk-adjusted returns whose Sharpe ratios of 1.58 to 2.45 were markedly higher than buy-and-hold standards. The Bitcoin-Etherer pairs trading strategy had an annualized return of 16.34 evidenced by a volatility of just 8.45 against the volatility of Bitcoin on buy and hold at 54.67. These strategies had low beta (0.09-0.18), which was an affirmative of their market-neutral qualities and their positive alpha generation of between 11-15% per annum.
The modern development of decentralized ledger and blockchain technologies has led to the emergence of smart contracts, which are becoming an important tool in the digital economy, transforming existing understandings of the conclusion and fulfillment of obligations in the digital environment. The authors believe that recognizing the objective multi-paradigmatic nature of this phenomenon will not only facilitate the integration of modern technological advances into the legal system but also stimulate the growth of an innovative economy, increase trust in digital platforms, and ensure their adaptation to the rapidly changing conditions of the digital market. The conclusions include proposals for legislative development based on a multi-paradigmatic approach, which assumes a comprehensive understanding of the legal status of smart contracts, taking into account technological, legal, and socioeconomic aspects. This, according to the authors, will help identify the most promising ways to integrate digital contractual instruments into the modern legal system.
Cryptocurrencies constitute a fast-evolving, disruptive technological development. Their proliferation and mainstreaming are undermining national security in several ways. By exploring emblematic cases, this paper examines how decentralised digital assets challenge sovereign functions, complicate law enforcement efforts, and give rise to security challenges. It explores different state-level responses to these developments by drawing on policy documents, reports, and guidance from multilateral regulatory authorities, alongside literature from finance, security studies, international relations, and technology governance. Strategic considerations spanning areas of illicit finance, sanctions evasion, great power rivalry, and state co-option by means of issuing Central Bank Digital Currencies and establishing cryptocurrency strategic reserves are delineated. A comprehensive mapping of the actual impact of cryptocurrencies across several strategic domains is carried out, synthesising insights from previously siloed technical, legal, and international relations literatures into an integrative national-security analytical lens. Specific recommendations are provided for policymakers and planners to navigate this fast-evolving threat landscape. ⢠Synthesizes siloed literature to elucidate how Cryptocurrencies impact national security. ⢠Cryptocurrencies are reshaping threat landscapes and emerging as a domain for great power competition. ⢠Stablecoins strain monetary policy in fragile economies, while Privacy coins hinder AML/KYC enforcement and counter-terror efforts. ⢠Sovereign actors are already using cryptocurrency to circumvent sanctions, fund weapon programmes and covert operations. ⢠CBDCs seek to harness the benefits of cryptocurrencies while re-asserting sovereignty, reflecting divergent geopolitical strategies.
Huei-Wen Teng, Wolfgang Karl Härdle, Joerg Osterrieder, Daniel Traian Pele ¡ 31 authors
Digital assets (DAs) such as cryptocurrencies, tokenized securities, stablecoins, non-fungible tokens (NFTs), and central bank digital currencies, are transforming financial markets with new business models, investment opportunities, and transaction efficiencies. Underpinned by blockchain, distributed ledger technology, and smart contracts, digital innovations are reshaping the financial ecosystem. However, their rapid growth introduces substantial risks, including fraud, market manipulation, cybersecurity threats, and regulatory uncertainty. This position paper offers an interdisciplinary and empirically grounded analysis of the DA landscape. We define and classify major asset types, trace their evolution from speculative instruments to functional tools, and assess current adoption trends. Additional technological developments (e.g., decentralized finance and NFT expansion) are examined for their role in accelerating this transformation. We also analyze the global regulatory landscape, highlighting jurisdictional differences, classification challenges, and emerging governance frameworks. To address key risks, we derive mitigation strategies via quantitative analysis and case-based evidence. The risks include balancing innovation with investor protection through adaptive regulatory design, promoting cross-border regulatory harmonization to prevent arbitrage and fragmentation, and supporting experimentation through regulatory sandboxes and innovation hubs. By adopting a forward-looking, evidence-based, and collaborative regulatory approaches, stakeholders can harness the benefits of DAs while managing systemic risks and maintaining market integrity.
This manuscript presents a conceptual and ideological-social framework for a cryptocurrency token denoted as $Rupert (or $Rupert), positioned as an innovative fusion of decentralized finance (DeFi) mechanisms and political advocacy aligned with the policy agenda of British politician Rupert Lowe MP and his associated movement, Restore Britain.
The development of blockchain technology has led to the emergence of a novel form of collaborative organization, known as Decentralized Autonomous Organizations (DAOs), which rely on internet-based communication and cryptographic mechanisms. The economic significance of DAOs has prompted legislators to consider appropriate legal frameworks. This article analyzes the legal status of DAOs in the European Union and the Republic of Armenia. While the EU adopted the Markets in Crypto-Assets Regulation (MiCA), it refrained from recognizing DAOs as distinct legal entities, despite preliminary considerations during the legislative process. Similarly, Armenia, through the Law on Crypto-Assets (HO-159-N), inspired by MiCA, does not explicitly address DAOs. Consequently, both jurisdictions exhibit a regulatory gap. The article demonstrates that, even in the absence of dedicated legislation, interpretative cues within these legal instruments can provide guidance on how DAOs may be treated under EU and Armenian law. By examining these frameworks, the study contributes to understanding the potential legal recognition and regulation of DAOs in different legal systems.
<p class="MsoNormal" align="justify">The latest technology Non-Fungible Token (NFT) supports ownership of objects on the internet; everyone wants to reap the maximum of this opportunity. The price of the NFT shot up overnight, creating a market with trading volumes of millions worth, but there seem to be issues related to the legitimacy of this technology. Some countries define the legality of NFTs, cryptocurrencies, and cryptocurrency-based smart contracts, but they are just a handful of them; there requires the assessment of standards in NFT for full-fledged expansion throughout the world. The majority of the problems are related to the security of the users, price volatility of NFTs, and copyright issues. In this research, the evaluation is achieved by applying methods to identify the standards present in the current NFT ecosystem. The methods acquire quantitative and qualitative information to analyze it by designing models based on Correlation and Total Connectedness Index formulas to give the perspective of the inter relation between NFTs and other financial assets and deeply examine the technology's compliance with the regulations like KYC requirements and copyright registrations. The research uses numerical and non-numerical data from various sources, which are familiar with the crypto community. The results manifest the standards of NFTs, stabilization measures to the NFT market, and it guides investors, developers, and entrepreneurs. May be there is a prerequisite for the design change, viewpoint for alternative replacements for establishing smart contracts between the parties engaged in NFT ventures. Contemplating the level of centralization required on NFTs for protection of the stakeholders in the financial market.</p>
Devika T D, Sangeeth Karunakaran, Basudev Balachandran, S Shinas ¡ 5 authors
Managing crypto investments for retail investors is often hindered by high volatility, poor timing (buying at peaks and selling at lows), and the inherent risks of centralized platforms. This project introduces a decentralized, automated SIP model for crypto investments, offering a non-custodial and multi-asset investment protocol to limit these challenges. The system automates crypto investing like a Systematic Investment Plan (SIP). All SIP rules (amount, frequency, maturity) are enforced automatically by smart contracts, ensuring trustless and transparent execution. Users maintain full custody of their funds in non-custodial wallets like MetaMask, and investments are made directly using stablecoins (USDT/USDC) into crypto pools (BTC, ETH, SOL, BNB). The purchased assets are stored in a smart contract vault until maturity, promoting structured long-term investing and verifiable on-chain transparency. By leveraging smart contracts and dynamic frequency validation, the system provides a consistent, reliable, and non-custodial solution for long-term wealth building in the decentralized Web3 space.
Arus Reka Prasetia, Primanola Perdananti, Ikaputera Waspada, Maya Macia Sari
Agency conflicts remain a persistent challenge in corporate governance because information asymmetry and misaligned incentives can weaken monitoring and accountability. This systematic literature review synthesizes international empirical evidence on how blockchain and smart contracts relate to agency conflict mitigation and governance outcomes, and it clarifies boundary conditions and implications for Agency Theory. We followed PRISMA reporting guidance and searched Scopus for English journal articles published between 2018 and 2025. After title, abstract, and full-text screening, 13 empirical studies were included for quality appraisal and thematic narrative synthesis. Across contexts, blockchain adoption or innovation intensity is most consistently associated with improved information environments, including higher transparency and reporting quality and lower opportunism related proxies, and it is also associated with improved investment efficiency and selected compliance and risk outcomes. Evidence on smart contracts is substantially thinner. Smart contracts are explicitly analysed in one case study and they are discussed secondarily in one additional study, while none of the large sample quantitative studies operationalises smart contract use as a distinct construct. The synthesis indicates that governance benefits depend on data integrity supported by internal controls, external monitoring and assurance capacity, and regulatory and legal alignment that enables auditability and enforceability. Overall, blockchain-enabled corporate governance is best interpreted as governance by system design that complements conventional mechanisms and motivates future research on measurable smart contract use cases and stronger causal identification.
This article examines the legal nature of smart contracts and their compatibility with the legal system of the Republic of Azerbaijan. Smart contracts are defined as a hybrid legal mechanism arising from the convergence of classical contract law and blockchain technology. The author argues that automated execution of contractual obligations significantly reshapes traditional legal concepts of consent and performance. The study provides a comparative analysis of international regulatory approaches to smart contracts, focusing on the United States, the European Union, and selected Asian countries. Key principles such as technological neutrality, functional equivalence, and human oversight are assessed. This comparative perspective highlights the growing role of smart contracts beyond purely commercial transactions. The article evaluates Azerbaijani legislation, including the Civil Code, the Law on Electronic Signature and Electronic Document, and the Digital Development Concept, as a normative foundation for smart contracts. It concludes that the existing legal framework offers sufficient grounds for recognizing smart contracts as legally valid electronic agreements. The author emphasizes the potential application of smart contracts in digital government, e-services, and public procurement as part of Azerbaijanâs broader digital transformation agenda