The study's relevance is determined by the critical dependence of cryptocurrency market stability on thetechnical reliability of smart contracts and the increasing risks of financial losses due to their defects. Aim:The aim of the study is to formalize the ranking of technical vulnerabilities of smart contracts by theirimpact on the economic stability of domestic capital markets through systematization, simulationmodelling, and quantitative assessment of financial indicators. Methods: The research used the followingtechniques: vulnerability typing, simulation modelling, financial analytics, and comparative analysis.Obtained results: The study confirmed the critical impact of smart contract technical vulnerabilities on thefinancial stability of the markets, with peak VaR of up to -68.5% and liquidity deterioration of over -80%for reentrancy attack, delegatecall injection, and oracle manipulation. The risks were reduced by more thanhalf after implementing multi-level optimisations, demonstrating the effectiveness of comprehensivemitigation to stabilise key financial indicators. Academic novelty of the study: The academic novelty of thestudy is the formalized classification of technical vulnerabilities of smart contracts and the first empiricalassessment of their impact on the economic stability of capital markets based on comprehensive financialand economic metrics, which extends the theory of DeFi structural risks. Prospects for future research:Prospects for further research include the development of a pilot project for technical optimization ofsmart contracts with a focus on increasing resilience to logical and synchronization defects.
In the context of rapid global transformations driven by the digitalization of the economy, politics, and the social sphere, rethinking approaches to constitutional and legal regulation becomes especially relevant. This article examines the challenges faced by modern constitutions due to the spread of digital technologies and analyzes emerging legal gaps in the regulation of new social relations. The author explores the theoretical foundations of the need to adapt constitutional norms to the conditions of digital reality, including virtual spaces, artificial intelligence technologies, distributed ledgers, and other elements of the digital environment. Special attention is given to the correlation between digital innovation and the foundations of constitutional order, the principles of the rule of law, and the protection of human rights under new conditions. In this context, the role of lobbying is analyzed as a mechanism for the legitimate representation of the interests of digital actors – technology corporations, civil society, and the expert community – in the process of legal transformation. Based on an analysis of legal literature and constitutional texts from various countries, the article concludes that targeted amendments to provisions concerning fundamental rights and freedoms, constitutional order, and the organization of public authority are inevitable. The article proposes a range of practical solutions, including the development of conceptual approaches to the legal recognition of digital rights, mechanisms for their implementation, and the institutionalization of lobbying activities as a tool for shaping a sustainable digital legal agenda. Thus, in modern conditions, lobbying acquires new significance as an element of constitutional architecture, reflecting the need for dialogue between the state and digital society—an element that requires constructive analysis and doctrinal study.
Целью статьи является комплексный анализ возможностей и ключевых тенденций развития блокчейн-технологий в экономическом секторе. Проблема исследования заключается в стремительном проникновении распределенных реестров в различные отрасли при отсутствии системной оценки их потенциала и сопутствующих рисков. В качестве основной гипотезы выдвинуто положение о том, что блокчейн формирует принципиально новую инфраструктуру доверия, способную трансформировать традиционные экономические процессы. Научная новизна работы заключается в комплексном применении инструментов стратегического анализа (SWOT- и PEST-) для выявления системных преимуществ, рисков, регуляторных вызовов и киберугроз. Методология исследования включает сравнительный анализ применения распределенных реестров в финансах, логистике, государственном управлении и цифровых сервисах, с особым акцентом на такие ключевые инструменты трансформации, как цифровые валюты центральных банков (CBDC), децентрализованные финансы (DeFi) и невзаимозаменяемые токены (NFT). В результате установлено, что внедрение блокчейн-решений обеспечивает значительное снижение операционных издержек, повышение прозрачности и безопасности экономических операций. Практическая значимость данного исследования заключается в создании комплексного понимания потенциала технологий для бизнес-сообщества и регуляторов, что может способствовать разработке стратегий цифровизации и адаптации нормативно-правовой базы. Перспективы будущих исследований охватывают углубленный анализ долгосрочных последствий внедрения DeFi и CBDC, а также создание моделей управления киберрисками в условиях широкого распространения распределенных реестров. The purpose of the article is a comprehensive analysis of the opportunities and key trends in the development of blockchain technologies in the economic sector. The problem – of the study lies in the rapid penetration of distributed registries into various industries in the absence of a systematic assessment of their potential and associated risks. The main hypothesis is that blockchain forms a fundamentally new trust infrastructure capable of transforming traditional economic processes. The scientific novelty of the work lies in the integrated application of strategic analysis tools (SWOT and PEST) to identify systemic advantages, risks, regulatory challenges and cyber threats. The research methodology includes a comparative analysis of the use of distributed ledgers in finance, logistics, public administration, and digital services, with a particular focus on key transformation tools such as central bank digital currencies (CBDCs), decentralized finance (DeFi), and non-fungible tokens (NFTs). As a result, it was found that the implementation of blockchain solutions provides a significant reduction in transaction costs, increased transparency and security of economic transactions. The practical significance of this research lies in creating a comprehensive understanding of the potential of technology for the business community and regulators, which can contribute to the development of digitalization strategies and the adaptation of the regulatory framework. The prospects for future research include an in-depth analysis of the long-term consequences of the introduction of DeFi and CBDC, as well as the creation of cyber risk management models in the context of widespread distributed ledgers.
Security, Politics, and Digital Transformation
Legal and Regulatory Analysis
Economic, Social, and Public Health Issues in Russia and Globally
The article is devoted to the study of the current legal regulation of virtual assets in the Federal Republic of Germany. The author analyses the advantages and disadvantages of the relevant regulatory framework, decisions taken to harmonise legislation in accordance with the new Regulation of the European Parliament and of the Council, as well as the possibility and expediency of implementing the most successful decisions into Ukrainian legislation. Due to the lack of relevant in-depth studies that would combine the main regulatory norms and definitions, as well as provide a general overview of this regulatory system, it became necessary to conduct a detailed study of the current regulatory framework of the Federal Republic of Germany in this area, which is one of the most complex among known jurisdictions in the field of virtual assets. The following list details the responsible regulators, as well as the legally established definition of virtual assets and their classification. The Federal Republic of Germany has developed an original classification system and a hybrid approach to defining asset categories in order to apply the provisions of MiCA. Currently, not all objects created on the basis of blockchain technology are subject to regulation, primarily non-fungible tokens, which is in line with MiCA provisions. The licensing system for service providers in the field of virtual asset circulation, the specifics of the transition period and the new classification of licence classes in accordance with MiCA were also examined. An analysis of the requirements for initial coin offerings (ICOs) in accordance with the regulatory framework of the Federal Republic of Germany and MiCA was conducted. The issues of virtual asset mining regulation and taxation were examined. It is concluded that the Federal Republic of Germany has found a way to regulate many more assets than provided for by MiCA, which gives competitive advantages to the national economy. Ukrainian legislation needs to borrow the approach to building such a regulatory system, which can be harmonised with European Union legislation, while preserving the advantages of its own legislation.
The article is devoted to the study of the current legal regulation of virtual assets in the Federal Republic of Germany. The author analyses the advantages and disadvantages of the relevant regulatory framework, decisions taken to harmonise legislation in accordance with the new Regulation of the European Parliament and of the Council, as well as the possibility and expediency of implementing the most successful decisions into Ukrainian legislation. Due to the lack of relevant in-depth studies that would combine the main regulatory norms and definitions, as well as provide a general overview of this regulatory system, it became necessary to conduct a detailed study of the current regulatory framework of the Federal Republic of Germany in this area, which is one of the most complex among known jurisdictions in the field of virtual assets. The following list details the responsible regulators, as well as the legally established definition of virtual assets and their classification. The Federal Republic of Germany has developed an original classification system and a hybrid approach to defining asset categories in order to apply the provisions of MiCA. Currently, not all objects created on the basis of blockchain technology are subject to regulation, primarily non-fungible tokens, which is in line with MiCA provisions. The licensing system for service providers in the field of virtual asset circulation, the specifics of the transition period and the new classification of licence classes in accordance with MiCA were also examined. An analysis of the requirements for initial coin offerings (ICOs) in accordance with the regulatory framework of the Federal Republic of Germany and MiCA was conducted. The issues of virtual asset mining regulation and taxation were examined. It is concluded that the Federal Republic of Germany has found a way to regulate many more assets than provided for by MiCA, which gives competitive advantages to the national economy. Ukrainian legislation needs to borrow the approach to building such a regulatory system, which can be harmonised with European Union legislation, while preserving the advantages of its own legislation.
This dissertation analyzes how the European Union (EU) is able to regulate crypto-assets with the proposed Regulation on Markets in Crypto-Assets (MiCA). Crypto-assets havebeen regarded as one of the most disruptive advancements in finance and have beenableto operate without the use of traditional intermediaries and are able to challenge thecurrent regulatory frameworks. Besides the opportunities these crypto-assets bring for thefinancial sector, there is also the concern of financial stability, consumer protection, andintegrity of the market. These aspects also need to be considered with the use of innovative technologies. The approach to this research is both doctrinal as well as comparative. The research first describes the foundational concepts and technologies of crypto-assets and decentralizedfinance (DeFi) along with stablecoins and non-fungible tokens (NFTs). Afterwards theMiCA proposal is described in a certain detail. This is particularly in relation totheoverall EU financial regulation and its fulfillment to custody, disclosure, governance andlicensing aspects. To assess the extent of which MiCA is adequate, this dissertation reviews the pragmatics of the EU miCA with that of other major jurisdictions, like the US, the UK, andtheframeworks constructed by global organizations like the Financial Stability Board or theFinancial Action Task Force. Such a comparative analysis underscores a lack of a unifiedlegal framework especially with respect to DeFi, NFTs, and cross-border jurisdictional issues. The dissertation finds that MiCA is an integral building block towards the convergence of crypto-asset legislation in the EU. It decreases the confusion and discordant regulatorylandscape. However, it also maintains that MiCA is overlooking important elements likethe control of decentralized systems and the enforcement of anti-money launderinglegislation. Enhanced international collaboration and regulatory amendments will benecessary in order to foster the innovative frameworks that will ensure the stability of the financial systems.
This article addresses the complex issues of choosing legal principles in international commercial contracts in the context of globalization and the rapid development of digital commerce. It analyzes the fundamental principle of party autonomy, in particular its explicit (expressly stated in the contract) and implied (determined based on the circumstances) forms. The paper considers the adaptation of traditional legal approaches to modern challenges such as smart contracts, decentralized autonomous organizations (DAOs) and jurisdictional uncertainty. The immutability of smart contracts, while providing commercial certainty, simultaneously gives rise to legal paradoxes and regulatory gaps, as demonstrated in the case of Van Loon v. US Treasury. The need to obtain legal entity status for DAOs creates a market of “legal shells” offered by various jurisdictions (e.g., Wyoming, Switzerland). The emergence of innovative mechanisms such as multi-signature arbitration in dispute resolution leads to the privatization of enforcement proceedings. The aim of the study is to examine the adaptation of traditional legal approaches to modern challenges such as smart contracts, decentralized autonomous organizations, and jurisdictional uncertainty. The paper uses legal analysis and case study methods. The results show that the immutability of smart contracts creates legal paradoxes, while mandatory public law rules limit the voluntary autonomy of the parties.
The evolution of the technical architecture of digital currencies is profoundly reshaping the global monetary system. This article starts from the core dimensions of technical architecture selection, systematically analyzes the technical characteristics and applicable scenarios of blockchain, distributed ledgers, and hybrid architectures, and combines the two-tier operation system design of central bank digital currencies (CBDC) to explore their sustainable development paths in areas such as payment efficiency, privacy protection, and regulatory compliance. Research shows that the modular reconfiguration of the technical architecture, the improvement of cross-chain interoperability, and the application of quantum-secure encryption technology are the keys to promoting the realization of "controllable anonymity" and global deployment of CBDCS. This article puts forward policy suggestions such as driving technological iteration through a regulatory sandbox mechanism and building a multilateral central bank digital currency bridge, providing theoretical support for the maintenance of monetary sovereignty and the upgrading of financial infrastructure in the digital currency era.
The Blockchain is an emerging technology that is used in various applications for data security and trustworthiness. In the case of a public Blockchain, the data cannot be edited or deleted. In the case of a consortium and private Blockchain, the data can be edited or deleted based on the assigned permission, and the data privacy can be maintained. Blockchain's smart contract provides security to stored data, but it is vulnerable to various security threats. Smart contracts still suffer from different variabilities like distributed denial of service attacks (DDoS), 51% vulnerability attacks, double-spending problems, and mining Pool attacks. The smart contract, run on a Blockchain framework, is the logical contract between two or more anonymous people without involving a third party. Hyperledger and Ethereum are two important frameworks that support the development of smart contracts using Blockchain technology. This paper has tried to analyze the security issues of smart contracts developed on the Ethereum framework. An application of class scheduling management and student attendance management has been designed to validate and generate a smart contract. Received: 31 May 2025 | Revised: 4 August 2025 | Accepted: 29 August 2025 Conflicts of Interest The author declares that he has no conflicts of interest to this work. Data Availability Statement The data used in this article are virtual data to implement and to establish the algorithm. It is available in GitHub at https://github.com/ashisgitup/e-learning-Blockchain.git. Author Contribution Statement Ashis Kumar Samanta: Conceptualization, Methodology, Software, Validation, Formal analysis, Investigation, Resources, Data curation, Writing — original draft, Writing — review & editing, Visualization, Project administration.
In this article, we carry out a comprehensive comparative legal analysis of the criminal policy in the field of cryptocurrency confiscation in Russia, the European Union, and the United States. The relevance of this research is determined by the rapid growth of crimes involving crypto assets (money laundering, cybercrimes, and drug trafficking) and the lack of effective mechanisms for their final confiscation and implementation in Russia, which undermines the efforts of law enforcement agencies. We aim to identify effective models of cryptocurrency confiscation based on a comparative analysis of legislation and practice in leading jurisdictions and, on this basis, to develop recommendations for improving the Russian legal framework. The methodology includes a comparative legal analysis of regulatory acts (Russian Criminal Procedure Code, EU Directive 2014/42/EU, US Code), a formal legal method, an analysis of judicial practice (Russia, USA), and doctrinal sources. The key findings can be summarized as follows: (1) the USA enjoys the most advanced system, where the U.S. Marshals Service (USMS) actively uses private exchanges to convert confiscated assets; (2) the EU has established a strong legal framework (5/6AMLD, Directive 2014/42/EU); however, implementation practices here vary among member states, combining government-owned storage and outsourced sales through licensed platforms; (3) in the Russian Federation, despite the practice of seizure and arrest of crypto assets and legislative initiatives, the legal mechanism for their confiscation and sale is lacking, making court decisions unenforceable. In order to overcome this gap in Russia, it is necessary to urgently legislate cryptocurrency as property for the purposes of confiscation in the Criminal Procedure Code of the Russian Federation, grant the Federal Service for Judicial Enforcement of the Russian Federation the authority to sell through licensed platforms, as well as to develop expert potential. Our study extends the current knowledge by detailing the technological aspects of confiscation in the EU and the USA and proposes specific ways to modernize the criminal policy of the Russian Federation.
This study is a comprehensive analysis of the prospects for the development of cryptocurrencies Bitcoin and Ethereum in the context of global economic and political transformations, revealing the fundamental ambivalence of their nature through the dialectic of nominal capitalization and the lack of a stable value paradigm. Using a synthetic methodology combining econometric volatility analysis with an institutional approach, the paper reveals a systemic correlation of the market dynamics of the assets under study with shadow financial flows and speculative practices, demonstrating their permanent dependence on behavioral patterns of mass demand rather than objective macroeconomic factors. Special attention is paid to the process of increasing marginalization of Bitcoin and Ethereum in the system of legitimate economic transactions against the background of the observed convergence of user preferences towards stablecoins, which, combined with extreme price fluctuations (up to +50%), which are stochastic, finally negates their investment viability. The results obtained make it possible to predict with a high degree of reliability the systemic risks of correction by 50% or more due to the fundamental vulnerability of these crypto assets as speculative instruments that do not have price stabilization mechanisms in conditions of geo-economic turbulence.
In today’s digital economy, traditional forms of ownership are undergoing significant changes due to the rise of new technologies, including the spread of Non-Fungible Tokens (NFTs). "Non-fungible" in this context means that each token is unique and cannot be easily exchanged for a similar item, as is the case with conventional digital or physical currencies. A token itself is a digital unit that can represent a digital asset, a piece of art or a unique item, or the granting of a service and so on. This study aims to analyze the role of NFTs as a tool that transforms ownership within the digital space and fosters new economic relationships. The research is grounded in the fundamentals of blockchain technology and integrates economic theories, specifically value theory and contemporary models of capital, in the context of NFTs. The article employs an interdisciplinary approach and examines the mechanisms of uniqueness and decentralized ownership inherent to NFTs, which are reshaping the structure and efficiency of the intangible assets market. Special emphasis is placed on the impact of NFTs on the monetization of digital assets, value formation, and the dynamics of the creative industry. Particular attention is also given to the speculative nature of the market, regulatory challenges, and the prospects for economic sustainability. The findings confirm that NFTs represent not only an economic innovation that transforms ownership mechanisms, but also pose complex challenges related to the legal protection of assets and market stability. The conclusions indicate that NFTs are not merely tools for transforming digital ownership but also play a significant role in shaping new models of the digital economy—models that require further research and regulatory attention. Keywords: NFT, digital economy, ownership transformation, intangible assets, blockchain, economic innovation, monetization, legal regulation.
Статья рассматривает смарт-контракты как основу цифровой трансформации бизнес-процессов, раскрываются архитектурные принципы, роль в автоматическом исполнении договорных обязательств и повышении прозрачности, а также перспективы интеграции с Интернетом вещей, децентрализованными финансами и цифровыми валютами центральных банков. The article examines smart contracts as a cornerstone of digital business-process transformation, detailing their architectural principles, their role in automating contractual obligations and enhancing transparency, and the prospects for integration with the Internet of Things, decentralized finance, and central-bank digital currencies.
Teodora Maria Suciu, Nicoleta Verejan, Adela Socol
The accelerated development of digital technologies and cryptocurrencies in latest years has been accompanied by an exponential raise in related scientific literature. This study conducts a bibliometric analysis based on the VOSviewer software for documents indexed in the Web of Science Core Collection from 2015-2024, focusing on the evolution of research topics in the field of cryptocurrencies. The analysis employs co-occurrence mapping of the main research topics related to cryptocurrencies. The results highlight a high degree of thematic diversification, organized into five major clusters with the following directions: cryptocurrency markets and financial performance, digital assets and technological foundations, blockchain infrastructure and governance, emerging applications and risks, general cryptocurrency concepts and operational aspects. This research contributes to the knowledge by offering a comprehensive and structured overview of cryptocurrency-related literature streams, providing valuable insights for scholars, policymakers and industry stakeholders seeking to understand the trajectory and future potential of cryptocurrency-related research.
La reciente sentencia dictada por el Juzgado de lo Mercantil de Barcelona en enero de 2024 ha supuesto el primer pronunciamiento de un tribunal español sobre una cuestión tan controvertida como los non-fungible tokens (conocidos comúnmente como NFTs) y su relación con los derechos de autor. Este trabajo busca realizar un análisis sobre las características esenciales de los NFTs y la posible afectación de las obras de propiedad intelectual que en muchas ocasiones estos activos llevan vinculadas. Para ello, se combina una exposición teórica desde el punto de vista doctrinal español e internacional de los elementos definitorios que componen un NFT, con una aproximación práctica comparada a través de la reciente casuística jurisdiccional sobre la cuestión. Con ello, el trabajo busca dar una visión actualizada de la problemática y aportar posibles vías de solución a una cuestión reciente que todavía permanece abierta desde el punto de vista del derecho de autor.
This study examines the philosophical-legal foundations of smart contracts through the lens of transforming concepts of autonomy and determinism. The semantic gap between the natural language of law and the formal language of programming is investigated. The ontological status of smart contracts as hybrid sociotechnical phenomena is analyzed. A conceptual vision of "executable law" is proposed for understanding new forms of algorithmic normativity in the digital era.
Aim . To reveal the ideological nature of digital decentralization as a systemic challenge to traditional state sovereignty and to identify risks for modern states amid technological transformation. Methodology . The core of the study comprises an analysis of key digital decentralization ideologies (crypto-anarchism, cyber-syndicalism, cypherpunk), their technological foundations, and implementation practices. A comparative analysis of foundational manifestos by crypto-anarchists and cypherpunks (T. May, E. Hughes) was conducted, and the evolution of decentralized movements was synthesized. Results . The analysis demonstrated that the synergy of technologies and extra-systemic ideologies creates parallel governance systems undermining the state’s monopoly on regulating finance, information, law, and the exercise of power. Threats to modern states include: erosion of trust in institutions, use of decentralized digital resources for protest mobilization, sanctions evasion via cryptocurrencies, and increased citizen registrations in virtual jurisdictions operating beyond national law. Research implications . Proposals for state adaptation are formulated: shifting from technology bans to dialogue with IT communities and developing preventive measures. The author introduces an original interpretation of digital decentralization as “engineering autocracy”, where algorithmic power replaces political-legal mechanisms. The study reframes issues of state sovereignty in the context of competition with decentralized anti-systems.
Siti Khadijah Abdullah Sanek, Irma Kamarudin, Arina Kamarudin
This article examines the evolving relationship between digital assets, intellectual property (IP), and emerging technologies, with a particular focus on legal implications under European Union (EU) law. Innovations such as digital assets, such as cryptocurrencies, non-fungible tokens (NFTs), and artificial intelligence (AI) generated works, are reshaping concepts of ownership and intellectual property (IP). The article adopts a threefold methodological approach. To assess the adequacy of current legal frameworks, a systematic review highlights key limitations in applying traditional property law to intangible assets like cryptocurrencies and NFTs. The second element analyses the effects of emerging technologies on IP rights and regulatory compliance through an interdisciplinary synthesis of recent research. Lastly, a comparative legal analysis draws on EU and international case studies to identify regulatory gaps and propose policy responses. The findings suggest that while digital assets promote innovation, their decentralised and intangible nature poses challenges to core legal concepts such as exclusivity, attribution, and enforceability. Despite progress in EU digital regulation, inconsistencies persist across jurisdictions. The article concludes that a more harmonised legal framework supported by clearer definitions, the integration of smart contracts, and effective cross-border dispute mechanisms is necessary to ensure that IP law remains effective in the digital economy.
The integration of cryptocurrency transaction in online marketplace comes with its pros and cons. This integration brings security, traceability and transparency in the transactions. Besides, the major issue arising here is volatility in price of cryptocurrency,causing inconsistent transaction with reference to the nationally accepted currency.This review paper explores problems surrounding volatility of prices in blockchain based marketplace and adoption of cryptocurrency in online market-places and routine transactions. Because of the price fluctuations of cryptocurrency, the stability of transaction value became unpredictable,creating hesitation among buyers and sellers. The volatility impacts crypto acceptance when it comes to real world accepted currencies. Through the detailed review, we identified what are the possible solutions to combat volatility and enhance reliability of cryptocurrency transaction in real marketplaces, creating higher trust and acceptance rates for blockchain in varied fields. This work seeks measures for bridging the gaps between cryptocurrency's potential and stability in transactions for its acceptance in practical applications.
This article is devoted to a comprehensive study of the macroeconomic consequences of the introduction of smart contracts in the banking sector and their impact on the development of the modern financial system. The paper examines in detail the theoretical foundations and technological principles of smart contracts, as well as the mechanisms of their impact on key macroeconomic indicators, including the speed of capital circulation, inflation, lending and investment activity, as well as the overall stability of the national economy. Particular attention is paid to identifying the advantages of using this technology, such as reducing transaction costs, speeding up settlements, and increasing transparency and trust among financial market participants. At the same time, an analysis of the risks associated with technological disruptions, cyber threats and legal uncertainty is carried out. The article also provides examples of international experience and concludes that an integrated approach to the digital transformation of the banking sector is important for sustainable economic development and increased stability.
The article analyzes current aspects of cryptocurrency transaction taxation in the Russian Federation in 2025. It examines the regulatory framework governing the declaration and taxation of digital assets. The study explores features of tax base determination, tax rates, and reporting mechanisms for various categories of taxpayers in cryptocurrency operations. Methods of cryptocurrency transaction control and liability for tax law violations in digital assets are analyzed. Practical aspects of cryptocurrency operations tax administration are presented.
The paper explores the prospects for utilizing cryptocurrencies (digital currencies) within the context of foreign economic activity and analyzes the key legal challenges in this area. Currently, the use of digital currencies in cross-border transactions stands out as one of the most effective mechanisms for countering economic sanctions imposed by unfriendly states. In pursuit of these objectives, the Russian Federation has implemented an experimental legal framework for transactions involving cryptocurrencies. Furthermore, it has been established that cross-border settlements in cryptocurrencies were practiced prior to the initiation of this experimental regime, often in defiance of the existing prohibition on accepting digital currencies as consideration. It has been established that the state must ensure the simultaneous implementation of two public interests, which do not contradict each other: upholding legality and countering economic sanctions. This objective is to be achieved through amendments to legislation that introduce liability for violations of the aforementioned prohibition. Terminological inaccuracies within the digital currency legislation have been identified, specifically the inability to incorporate stablecoins with centralized issuers—which have become the primary instrument for cross-border settlements—into the legal concept of “digital currency.” The author substantiated the rationale for conducting a controlled experiment on the use of digital currencies in cross-border settlements.
Muhammad Ali Nawaz, Wajid Alim, Sammar Abbas, Shahid Manzoor Shah · 5 authors
The study investigates the co-movement relationships between cryptocurrencies and South Asian stock markets, focusing on five leading cryptocurrencies: Bitcoin, Ethereum, Tether, Binance Coin, and Ripple, and five South Asian stock indices: BSE, PSX 100, DSE 30, NEPSE, and Sri Lanka's All Share Index, and also used five major global indices for the accuracy of analysis. The study aims to understand their integration and causal dynamics. The analysis uses 357 weekly observations of historical prices from November 6, 2017, to September 2, 2024, applying econometric tools such as the Augmented Dickey-Fuller and Phillips-Perron tests, Johansen's Cointegration Test, Vector Auto-Regression, Vector Error Correction Model, and Granger causality to examine statistical properties, integration, and causality among the variables. Results show significant cointegration and causality between cryptocurrencies and South Asian stock indices, with cryptocurrency prices exhibiting higher volatility and faster adjustments than stock indices. These findings provide actionable insights for investors, policy-makers, and researchers regarding regulation and cross-market investment strategies. This study uniquely explores the interplay between emerging digital assets and traditional finance in a South Asian context, offering novel evidence on volatility dynamics and causal relationships that inform coupled regulatory frameworks and cross-market investment planning.