The article deals with an important and relevant topic – the definition of the concept and essence of cryptocurrencies, the study of the problems of their legal regulation, the rationale for control over their turnover, as well as the analysis of ways to counter money laundering that involves cryptocurrency. The authors emphasize that measures taken exclusively at the state level are not enough to create an effective, integrated and comprehensive system for regulating the legal status of cryptocurrencies. Therefore, international cooperation and the strengthening of cooperation between various states in the field of cryptocurrency regulation is important. The authors analyze the scientific doctrine regarding the essence of cryptocurrency. It was found out that there was no single approach to the definition of “cryptocurrency” among scientists. Moreover, cryptocurrencies in various laws of the world have different status. The authors used general scientific and special scientific methods, which provided an objective analysis of the purpose of the study. The research methods were used in interconnection and interdependence, which ensured the comprehensiveness and completeness of the research, as well as the validity of the obtained scientific results. The authors have determined states where cryptocurrency has an official status, is at the initial stage of legal regulation or completely prohibited at the state level. The relevance of the research consists in the actual absence of the legal framework for the regulation of cryptocurrencies, which is conditioned by the novelty of this phenomenon and the problems related to its functioning. The authors proposed their own definition of cryptocurrency based on its main features.
For the last five years there has been a global boom of interest in cryptocurrencies, followedby the fall of their rates; at the same time, there was a wave of enthusiasm regarding the publicoffering of tokens (ICO) and disillusionment in them (due partly to the active counteraction byAmerican and other influential regulators). Disputes on doctrine moved from suggestions of anew object of property rights to prohibitive initiatives. As these eventful years have shown, theglobal financial system is sufficiently stable to digest even such a decentralized phenomenonas cryptocurrency. In my opinion, it is now time to recall the tribulations of former discussionsand draw a conclusion concerning their interim (one hopes) normative results.
Perhaps the most advanced application of the distributed ledger technology (DLT), the Blockchain is a decentralized system that is known to store immutable metadata with the use of robust cryptographic hashes and consensus mechanisms. The very foundation of the Blockchain is the establishment of trust-less transactions in peer-to-peer networks. Having been deemed to set off a whirlwind in Industry 4.0 as we know it and starting out with the groundbreaking Bitcoin, this relatively new technology is on the way to prove that it can find applications in almost every imaginable sector. While most people focus only on cryptocurrencies; this disruptive technology, in fact, offers utilities to many administrative operations, fintech procedures, and everyday services which could earlier only be done offline and/or in person, that can now be safely moved to the Internet as Software as a Service (SaaS) models. What makes Blockchain a powerful tool for digitalizing everyday facilities is the introduction of smart contracts, as brought forward foremost by the Ethereum platform. Considering today"s technology, Blockchain may create one of the most prominent alternatives to traditional voting in terms of security, consistency and speed. The Blockchain technology, fortified by Smart Contracts, enables enhanced data verifiability and lowered costs while maintaining the openness and transparency of the voting process. The anonymity of voters, the security of ballot transmission and the veracity of votes during the billing phase are the most fundamental requirements for voting. In this paper, a potential use case of Blockchain, an E-Voting protocol, is proposed, that utilizes the Blockchain as a transparent ballot box to cast votes.
Modern international hydrocarbons turnover is becoming more autonomous and decentralized. This process is facilitated not only by the introduction into contractual practice of such network technologies as smart contracts and blockchain platforms, but also by the wide dissemination of sources of non-governmental regulation (lex petrolea). In the context of the network paradigm of private international law, the classic problem of conflict of laws is exacerbated. The author considers the conflict-of-laws aspects of the use of smart contracts based on blockchain technology in cross-border oil and gas transactions, taking into account the fact that the use of computer algorithms does not create a new contract, but is only a special form of transaction. Such “automated” transactions in the oil and gas sector involving multiple jurisdictions create uncertainty in their legal regime. In the absence of a comprehensive substantive legal regulation, and in connection with the phenomenon of lex petrolea, the conflict-of-laws method of regulation predominates. The author shares his reasoning concerning the possibility of extending the application of Regulation No. 593/2008 of the European Parliament and the Council of the European Union “On the Law to be Applicable to contractual obligations (Rome I)” to smart contracts. The author concludes that existing regulation is quite applicable to smart contracts in cross-border oil and gas transactions. Another question is whether the law, which is applicable by virtue of a conflict-of-laws rule, provides for an appropriate substantive basis. To date, special legislation on smart contracts has been passed in only several American states. It is predicted that in the future, private international law will not only determine the law applicable to smart contracts, but will also be a guide to disseminating the positive experience of legal regulation of smart contracts in different countries.
Recently, the legislation on cryptocurrencies has been rapidly developing both in foreign countries and in the Russian Federation. The paper analyses trends and prospects of legal regulation of cryptocurrency emission and allocation, represents various approaches to this issue in the international arena. The author provides us with a thorough analysis of recent trends in the development of legislation on the emission and allocation of cryptocurrencies in the world, substantiates the theses that states are constantly seeking to settle the digital realm. By defining the legal nature of cryptocurrencies and referring them to a particular object of legal regulation, the state streamlines and systematizes the rules that will be applied to mining and ICO. Whether the market is interested in such regulation is a philosophical question, but the state as a sovereign cannot afford to recognize (the lack of regulation should be treated as a tacit recognition in this case) the existence of cryptocurrency as an alternative to the national payment unit.
In the context of digitalization, the issues of determining the legal regulation of matters related to theuse of cryptocurrencies are naturally becoming increasingly relevant. The qualification of cryptocurrencyas an object of civil rights is one of the most important aspects of the legal regime of cryptocurrency. Theneed for high-quality development and registration of the legal regime of cryptocurrency, incorporationof this phenomenon into the legal system of the Russian Federation requires a detailed study of theissues of determining the place of cryptocurrency in the system of civil rights, attributing legal signs ofproperty or property rights to it, or, conversely, postulating and consolidating its fundamental identityand individuality. Analysis of the latest legal initiatives leads us to conclude that the legal regulation isinconsistent and ambiguous. Meanwhile, the courts repeatedly faced the proceedings and resolutions ofissues of cryptocurrency circulation, in particular in contractual disputes and bankruptcy disputes, whichpredetermined a certain judicial community approach to the concept of cryptocurrency and it’s qualificationsas an independent object of civil rights
The aim of this study is to establish the legal status quo of cryptocurrencies in the Russian Federation. The hypothesis presented by this study requires a profound reference to existing and proposed legislation as well as to the statements of a number of international, supranational and national regulatory bodies.
 This study uses qualitative research methods, and primarily consists of descriptive research. Doctrinal and comparative law research also lie at the very heart of this paper as they enable the author to identify, analyze and synthesize a number of foreign (incl. EU), and Russian laws. As a result, the emergence of new institutions and the modernization of existing ones, based on new technological breakthroughs, undoubtedly affect the already existing institutions that are under the influence of changes. Money, which is at the heart of finance, already loses its material forms of expression and regulating properties, alternative tools emerge in the economy that are ready to act as alternatives to this traditional institution. The alternative to money and monetary mechanisms will affect the basic instrument for regulating economic relations and the financial system of the state as a whole - a monopoly on the issue of currency. The nature of cryptocurrency, its features do not make it possible to attribute it entirely either to the means of payment, or to securities, or property. In the existing international community, cryptocurrency lacks a single focal point. Only a progressive view and modern legal regulation of cryptocurrency will create conditions for the development of legal and, most importantly, safe relations in the field of cryptocurrency.
Problem setting. The work is devoted to the study of the legal status of cryptocurrency as an object of taxation. The legal status of cryptocurrency in legal relations between tax authorities and individuals or legal entities is an urgent problem, since there is only a small number of works on this issue. Of particular note is the study of international experience in taxation of cryptocurrency transactions, as well as an analysis of the most relevant proposals for amending national legislation in order to establish the legal status of cryptocurrency and transactions related to cryptocurrency as an object of tax legal relations. Analysis of recent researches and publications. Despite the great relevance of this topic, in the modern science of tax law there are no fundamental scientific works and studies on the problems of taxation of cryptocurrency and cryptocurrency transactions. Target of research. The purpose of the scientific article is to conduct research on the legal nature of cryptocurrency, as well as the disclosure of theoretical, practical problems and features of legal regulation of cryptocurrency and operations related to the use of cryptocurrency in modern tax law. Article’s main body. The article deals with the legal nature of transactions connected with the use of the cryptocurrency as an object of tax relations. The issues of the possibility of attributing income, as well as profits from cryptocurrency transactions to the objects of taxation of personal income tax, profit tax, and value-added tax, are disclosed in accordance with the current tax legislation. The following conclusions have been drawn: it is impossible to impose the relevant taxes on income and profits from transactions with the cryptocurrency; there is a conflict in the current legislation, according to which the proceeds from transactions with cryptocurrency may be subject to the Law ‘On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime or Terrorism Financing, as Well as Financing Proliferation of Weapons of Mass Destruction’ In addition, foreign experience of legal regulation of transactions with cryptocurrency in tax legislation in such economically developed countries as the USA, Great Britain, Canada, Germany, Switzerland, etc. has been analyzed. It has been established that nowadays, in world practice, there is no unambiguous approach to the tax regulation and taxation of cryptocurrency transactions. So, in some countries, the income from operations with cryptocurrency is taxable, while in others cryptocurrency transactions do not belong to objects of taxation. Conclusions and prospects for the development. As a result, the author presents her own proposals on amending the tax legislation aimed at determining the legal status of cryptocurrency transactions in tax law. The article is devoted to the legal nature of transactions related to the use of cryptocurrency as an object of tax relations. Foreign experience of taxation of operations with the cryptocurrency is analyzed. The author considers current proposals for amending the tax legislation of Ukraine, who’s the purpose of which is to determine the legal status and control measures for compliance with tax legislation in the implementation of cryptocurrency transactions in tax law.
Dmitrii Aleksandrovich Kolesnichenko, Olga Viktorovna Kolesnichenko
The subject of this research is legislation, official interpretation, case law, and doctrinal sources on taxation of cryptocurrency mining in the Russian Federation with regards to personal income tax. The author verifies the hypothesis on the absence of economic basis for collection of personal income tax for cryptocurrency mining, thus there is a need for fundamentally new model of legal regulation for taxation of this activity. Special attention is given to assessment of tax consequences of mining based on the content of official interpretation of the Ministry of Finance of the Russian Federation, as well as with consideration of the developed in the doctrine basic approaches towards determination of the legal nature of cryptocurrency as property and property rights (other financial instruments. The author’s significant contribution consists in substantiation of the conclusion that the current system of legal regulation has no economic basis for collection of personal income tax for cryptocurrency mining; at the same time, future taxation of mining can be based on the patent tax system of taxation. It is reasoned that in order to ensure the implementation of the indicated special tax regime, it is necessary to attribute mining to entrepreneurial activity, as well as modify legal definition of the latter, which is formulated in Article 2 of the Civil Code of the Russian Federation. The author determines the legal prerequisites for taking cryptocurrency mining activity out of shadow and its lawful exercise in the Russian Federation.
The paper deals with the concept of homomorphic encryption and the possibility of its use in the mechanism of electronic voting. One of the problematic requirements for electronic voting systems is voter anonymity. On the one hand, each voter must be identified, and on the other, the content of his or her vote must be unknown. Currently, the methods and mechanisms used in real voting systems do not provide real anonymity. Therefore, both theoretical and practical content is an urgent and necessary problem of developing mechanisms for anonymous counting of votes with the protection of their distortion. The paper also provides a general analysis of the security level of prospective homomorphic encryption schemes. The essence of homomorphic encryption is that there is some set of operations whose result of executing over ciphertexts (with subsequent decryption) coincides with similar actions over plaintexts. Homomorphic encryption allows you to perform some calculations on information without having access to the information itself. However, there are a number of problems when trying to apply such calculations. The main ones are the choice of the method of asymmetric encryption, which provides the necessary cryptographic stability from both classical and quantum attacks, the identification of possible candidates for asymmetric cryptotransformations in homomorphic encryption, their evaluation of comparison with each other, and, of course, the choice of the most rational for a given multiple restrictions. The asymmetric schemes of homomorphic encryption are compared using the hierarchy analysis process. The method of asymmetric encryption with zero knowledge is substantiated. The objective of this article is to substantiate the possibilities, conditions, and constraints on the use of standardized asymmetric cryptotransformations in the creation of modern homomorphic encryption-type transformations, when anonymity of electronic voting and practical implementation of anonymous voting based on proof of zero knowledge must be guaranteed.
Cryptocurrency and the problems of its legal regulation have recently become the subject of numerous studies. Legal science, including criminal law, does not stand aside. The contradictory nature of the legal nature of cryptocurrencies, the inability to accurately determine their species affiliation, a fairly large number of questions from the law enforcer led to an extensive doctrinal discussion. In author’s opinion, one of the most urgent questions is the definition of cryptocurrency relations as an object of crime and how errors in the perception of these relations and, most importantly, their subject matter, affect the enforcement and subsequent qualification of crimes. The paper discusses in detail the main points of view on the essence of cryptocurrency, the position of scientists on this issue. The author explains why cryptocurrency cannot be attributed to the types of securities, currencies or currency values known to modern law, and offers her own approach to the definition of cryptocurrency and cryptocurrency relations, and indicates how this affects the application of the criminal law.
This article is dedicated to the question of taxation and tax management of a number of operation in digital environment, namely related to the use of cryptocurrency. Special attention is paid to blockchain technologies as a promising tool for improvement of tax management and automation of business processes. The relevance of this work on the one hand is substantiated by the increasing trade volume on the digital markets hand, while on the other – weak foundation, insufficient technical capabilities of tax management of such operations and univerdsally accepted approaches. The results of research can be used by the Ministry of Finances and Government of the Russian federation in development of strategies for improvement of tax policy. The author determines the global trends of recognition/non-recognition of cryptocurrency as a specific type of property, assets of payment method. A brief overview of foreign approaches towards tax regulation of cryptocurrency is presented. The author systematizes the Russian legislative framework on taxation of digital currency, describes the evolution of national approaches to fiscal regulation in this area. A formulation of modern interpretation of cryptocurrency as the object of taxation by different types of taxes (corporate tax, value-added tax, corporate property tax, personal property tax) is provided. The author determines the possibilities for development of tax management with the use of blockchain technologies, as well as forecasts main consequences of such transformations for businesses and the state.
The object of this research is the international standards AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) for the sphere of virtual assets (cryptocurrencies) developed by FATF (Financial Action Task Force), and possibilities of their effective implementation into the national legislation. The author examines new revision of the Recommendation 15 and Glossary (of October 2018), explanatory note to new revision of the Recommendation 15, and implementation guidance of the risk-oriented approach towards virtual assets and service providers in the sphere of virtual assets (of June 2019); considers provisions of the Federal Law of July 31, 2020 No.259-FZ “On Digital Financial Assets, Digital Currency, and Amendments to Certain Legislative Acts of the Russian Federation” becoming effective in January 2021. Based on the analysis of most recent international and Russian acts on the questions of legal regulation of cryptocurrencies turnover, the need is underlined for introducing amendments to the Russian legislation with regards to exercising financial monitoring of transactions with cryptocurrencies in Russia. The author indicates certain fundamental aspects related to collection and validation of personally identifying information on the holders of cryptocurrency and tracing of their transactions.
Anatolii Georgievich Korchagin, Andrei Aleksandrovich Yakovenko
  This article explores the phenomenon of cryptocurrency and technology it is based upon. The authors describe the mechanism of its functionality along with the occurred problems of legal nature, which being interrelated make the phenomenon in question appealing within the criminal environment. Global digitalization sets new requirements, namely the combinations of legal and technical regulators meant to achieving adequate legal regulation in the digital era. The subject of this research is the Russian and foreign legal doctrine that reveals the essence of the indicated technology and mechanisms for protecting social relations in the context of utilization of this technology. The research methodology consists of the following methods: statistical, dogmatic, comparative-legal, synergetic, logical, functional, and systemic. The scientific novelty is substantiated by the need for convergence of the legal and information systems and demonstration of such convergence during the period of rapid digitalization in all social spheres. The authors draw a conclusion that the problem carries a comprehensive character, and the longer it takes to resolve the issues of legal regulation, the higher are the risks of using cryptocurrency.  
The article is devoted to the analysis of the legal nature of the cryptocurrency as an object of financial and legal regulation from the point of view of Russian legislation. It includes the analysis of the qualification of the cryptocurrency described as money, electronic money, foreign currency, other property, as well as the possibility of assigning crypto-loans to obligations rights. The conclusion is made about the possibility of treating cryptocurrency as private money on a par with national currencies.
The blockchain is a technology that was initially designed as an alternative to the banking system aimed to decentralize money circulation. It has become apparent that the invention has a vast potential to improve various industries and fields of human activities. The blockchain industry generated a variety of ideas of how to use this technology: to crowdfund business with Initial Coin Offerings (ICO), to tokenize and manage assets online, to improve public administration and state-owned registries, or even to use it for electronic voting. Multiple applications of this technology became possible since the industry started experimenting with overlay technologies on blockchains, for example, Colored Coins, known as tokens on Bitcoin; Namecoin, a blockchain as a decentralized infrastructure for Top-Level Domain “.bit,” but the significant step forward happened when Ethereum proposed their concept of smart contracts on blockchain. There are several platforms that offer users the ability to design their own private and public distributed ledgers (Hyperledger, Azure). It is not easy to mention all of the projects in the field of blockchain industry; however, at this stage, it has become clear that the technology (along with some other innovations, like Artificial Intelligence) is penetrating spheres that are traditionally highly regulated and centralized with a high level of human participation: securities and exchanges, public registries (notary, real estate, business entities and other registries), public finances, elections, etc. This discussion is devoted to the issues of regulations for the activities that arise from the blockchain.
The article addresses the prospects of using distributed ledger technologies – blockchain and artificial intelligence – for the purpose of systematizing the rights to the results of intellectual activity for their subsequent commercialization. The authors describe the key characteristics of the distributed ledger technology and review various legal problems pertaining to the use of blockchain technologies. The authors draw conclusions regarding the prospects of using blockchain and artificial intelligence technologies as measures for rapid prevention and elimination of intellectual rights violations. They also express their views on the process of commercializing intellectual property and reducing the number of conflicts related to the inclusion of intellectual property objects into distributed ledger systems. The article was prepared with the financial support of the Ministry of Higher Education and Science of the Russian Federation within the framework of the research “Scientific and methodological support for the development of theoretical and applied legal structures (models) of accounting and disposal of rights to the results of intellectual activity (technology transfer)
Reluctance to pay taxes is a natural feature of man. Given the above, it is not surprising that taxpayers are constantly looking for all possible ways to avoid taxation. The legislator, realizing the above, introduces a number of regulations aimed at counteracting dishonest actions of taxpayers. In the context of cryptocurrencies, these are in particular solutions aimed at limiting anonymity in the circulation of cryptocurrencies. The taxpayers, taking advantage of the fact that trading in cryptocurrencies is very specific, complicated and partially anonymous, try to outsmart the tax authorities and pay no taxes on income from such transactions. Also, the fact that until January 1, 2019, there was no regulation regarding the taxation of cryptocurrencies, and the introduced regulation also raises many doubts, does not encourage taxpayers to honestly settle accounts with tax authorities. Tax authorities, on the other hand, do not have the tools that would enable them to counteract taxpayers’ dishonesty effectively, what leads to the depletion of tax liabilities.
Elena Voskresenskaya, Lybov Vorona-Slivinskaya, Lybov Achba
The study on issues of digital economy proved the current existence of the new “digital” economic reality. The traditional legal apparatus used for the statutory regulation of this new economic reality showed itself not only inefficient, but also significantly restraining the actively developing economic processes. In this regard, a plenty of practical and legal collisions occur related to the problems of identification of persons involved in civil-law transactions, property relations regarding digital economic turnover (for instance, relations concerning property rights in the field of distributed ledgers), registration of property rights and deals, regulation of banking line processes, formation of special protection models for relationships based on the use of digital technologies including issues of cybernetic and data security. The development of digital economy will inevitably influence legal principles and demand reconsidering some of doctrinal approaches to traditional legal models of regulating different types of economic activities. In this case, socially just changes in the legal regulation of economic activities should be primarily aimed at removing legal barriers that impede the development of digital economy, as well as at synchronizing legal rules with the technological features of economy’s functioning.
Features and modern operating conditions of utility companies (institutions, organizations), in particular, the processes of democratization, decentralization, openness of society,necessitate improving the system of indicators that define requirements for the criteria used to evaluate their performance. Given the goals, objectives and current functions, the evaluation of performance of a utility company(institution, organization) should be carried out both according to economic and social criteria, which is explained by the fact that activities of a utility company(institution, organization) are aimed at solving social problems of the corresponding territorial community.This means that its performance efficiency is not always determined by profitability.It is possible to assess effectiveness of utility companies' using local finance, which are the main income item in their budget, and the level of influence of a utility company(institution, organization) on the development of a territorial community only if the enterprise is transparent and open. It is proposed to single out the criterion "Public awareness of activities of a utility company (institution, organization)" in the system of criteria for assessing social performance of a utility company (institution, organization). Accordingly, in the system of 332.1
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Several states have recently changed their business organization law to accommodate autonomous businesses—businesses operated entirely through computer code. A variety of international civil society groups are also actively developing new frameworks— and a model law—for enabling decentralized, autonomous businesses to achieve a corporate or corporate-like status that bestows legal personhood. Meanwhile, various jurisdictions, including the European Union, have considered whether and to what extent artificial intelligence (AI) more broadly should be endowed with personhood to respond to AI’s increasing presence in society. Despite the fairly obvious overlap between the two sets of inquiries, the legal and policy discussions between the two only rarely overlap. As a result of this failure to communicate, both areas of personhood theory fail to account for the important role that socio-technical and socio-legal context plays in law and policy development. This Article fills the gap by investigating the limits of artificial rights at the intersection of corporations and artificial intelligence. Specifically, this Article argues that building a comprehensive legal approach to artificial rights—rights enjoyed by artificial people, whether corporate entity, machine, or otherwise—requires approaching the issue through a systems lens to ensure that the legal system adequately considers the varied socio-technical contexts in which artificial people exist. To make these claims, this Article begins by establishing a terminology baseline, and emphasizing the importance of viewing AI as part of a socio-technical system. Part I then concludes by reviewing the existing ecosystem of autonomous corporations. Parts II and III then examine the existing debates around artificially intelligent persons and corporate personhood, arguing that the socio-legal needs driving artificial personhood debates in both contexts include: protecting the rights of natural people, upholding social values, and creating a fiction for legal convenience. Parts II and III also explore the extent to which the theories from either set of literature fits the reality of autonomous businesses, illuminating gaps and using them to demonstrate that the law must consider the socio-technical context of AI systems and the socio-legal complexity of corporations to decide how autonomous businesses will interact with the world. Ultimately, the Article identifies and leverages links between both areas of legal personhood to demonstrate the Article’s core claim: developing law for artificial systems in any context should use the systems nature of the technical artifact to tie its legal treatment directly to the system’s socio-technical reality.