The development of digital technologies permeates almost all areas of public relations. At the same time, certain areas remain more conservative, and legal regulation also lags behind the pace of general digitalization. This situation is especially clearly visible in the field of inheritance of digital assets. The subject of this article is to explore the opportunities and risks associated with inheriting NFTs. The purpose of the article is to determine algorithms for inheriting NFTs in the context of insufficient legal regulation of this procedure in the Russian Federation. The work uses methods of both empirical (analysis and synthesis, induction and deduction, systematization) and theoretical (methods of constructing and studying the object of study and methods of constructing and justifying theoretical knowledge) levels. When transferring a token, a unique record is transferred, and the previous owner of the NFT loses the token after it is transferred. This makes NFTs similar to material objects and necessitates separate legal regulation of the rights associated with NFTs. An NFT is inherited, not a digital object such as art. The main problem with inheriting NFTs is that these objects are intangible. They cannot be physically materialized, stored, for example, in a safe deposit box, or transferred physically. Therefore, if the owners do not have specific heirs, it will even be difficult to include NFT in the inheritance or find out about the token. Inheriting an NFT requires that the will name the NFT and include an explanation of where the NFT is held. The testator’s password must also be available. There may be problems associated with the compulsory share in the inheritance, related both to access and to the assessment and dynamically changing value of the NFT. Also, the valuation of the NFT will influence the amount of the state fee for issuing a certificate of inheritance. The practical implementation of NFT inheritance is facilitated by the development of appropriate digital technologies that optimize procedural aspects.
The purpose of the article is to analyse the main stages of formation and features of NFT with a projection on their use in the cultural and artistic environment. The research methodology is based on the use of a number of methods and approaches, which, taking into account the interdisciplinary nature of the problem, are integrated from art history, history, information technology. In addition, general scientific methods of analysis and synthesis, generalisation are applied. The scientific novelty consists in an attempt to substantiate the relevance of the use of NFT (non-fungible tokens) for the preservation of cultural values, the authorship of artistic works and creative industries. Conclusions. Technologies related to digitisation, virtual reality, artificial intelligence significantly affect changes in research and creative practices. The growing number of initiatives, services and applications arising at the intersection of the latest technologies and art motivates to study and discuss the creative potential of ICT in the context of culture and art. An important component of modern cultural, artistic, and economic processes is the implementation of NFT in the Metauniverse. NFTs (Non-Fungible Tokens), which are mostly encoded on the blockchain, are a distributed ledger technology related not only to cryptocurrencies, but also to the rapidly growing field of artistic entrepreneurship. The complex of blockchains and the decentralisation of their potential activates questions of strategy and the opportunities they open up for artists and creative industries. NFT is primarily an opportunity for everyone to become a participant and manager of a new cultural and artistic reality, which is characterised by global trends and local features of the production, development, popularisation, and circulation of cultural values. NFT-marketplaces play an important role in the circulation of digital cultural assets and are of particular importance for the formation and functioning of the cultural and artistic space, in particular, of Ukraine. This raises important issues of managing a technology that requires expertise in cryptography, coding, and the creation of legislation for its implementation.
Aim. To study and describe the main trends in the development of the world market of digital financial assets in the conditions of digital transformation. Objectives. To disclose the essence and role of digital transformation at the present stage; to consider the emergence of digital financial assets and the possibilities of their application against the background of high growth rates of the cryptoasset market; to analyze the main indicators of digital currencies as of February 2024; to identify the key characteristics of the use of cryptocurrencies by different countries; to rank countries according to the index of cryptocurrency ownership for 2023; to describe the development trends of the circulation of digital financial assets in the world in the conditions of digital transformation. Methods. The study uses complex and logical approaches, general scientific methods (analysis, synthesis), methods of comparative and economic analysis, analytical processing and graphical presentation of information. Results . The leading trends in the development of the global market of digital financial assets in the conditions of digital transformation have been considered. The indicators of the top 10 largest digital currencies by market capitalization are highlighted. Based on the results of the study, the ranking of countries by the index of cryptocurrency ownership for 2023 was compiled. The main indicators of digital currencies for February 2024 were analyzed. The key characteristics of cryptocurrency use by different countries in the context of high rate of digital transformation were described. Conclusions. The results of the conducted research allowed us to conclude that the current transformation of the global economy, associated with the active development of breakthrough technologies, including distributed ledger technologies (DLT) and blockchain, has become a trigger for the emergence of digital financial assets and expanded the possibilities of their application in the context of high growth rate of the cryptoasset market. The analysis of the current state and development of the circulation of digital financial assets in the world under the conditions of digital transformation shows the growing interest in the use of cryptocurrencies and the introduction of blockchain technologies in the financial systems of various countries, as well as the growing use of cryptocurrencies by companies and individuals. Taking into account the review of global trends, development of fintech technologies, the conclusion is made about the inevitability of the processes of digitalization of financial assets, the emergence of new forms of digital assets, which dictate the need for advanced development of their legal regulation. In the future, the development of digital assets will give them the official status of a means of payment and expand their use in the system of financial relations in the conditions of digital transformation both in Russia and abroad.
Darigi Bharath Naik, Sebastian Terence, Angeline Lydia
This article provides a comprehensive analysis of the emerging market for non-fungible tokens (NFTs), focusing on the role of rarity in the valuation of these digital assets. It is well known that rarity has an impact on the price of non-fungible tokens (NFTs). Investors often make purchasing decisions based on NFT lows. In this paper we used the trait rarity method to calculate the rarity of NFTs and identified rare NFT. Since the rarity plays vital role in pricing and value of NFT, we have utilized rarity in NFT price calculation. Through a rigorous analysis of rarity scores and other methods of measuring rarity, we came to understand their impact on NFT value. This research contributes to the digital asset valuation debate and provides insight into the development of the NFT market.
Олег Грибунов, Sergey Igorevich Usachev, Е.А. Усачева
The work is devoted to the consideration of issues related to the impact of digitalization on modern crime. The authors identify trends in the use of virtual currency in criminal activities. Attention is drawn to the lack of clear legislative regulation regarding cryptocurrency and items of theft in this area, and existing judicial practice is analyzed. It is noted that the lack of clear legislative regulation has a negative impact on the process of proving illegal acts involving the use of cryptocurrency and other virtual currency. Law enforcers are faced with problems of determining the value of these financial assets, the lack of proven and reliable mechanisms of proof, clear schemes and algorithms for the application and use of various software products that are aimed at recording the fact of transactions, determining the time and place of transactions (transfers) made by both criminals and victims. Separately in the work, the authors pay attention to the use of specialized forensic technology tools that help in retrieving and storing information, despite the complexity of modern devices and encryption systems. The work provides examples of modern software products, for example, Elcomsoft iOS Forensic Toolkit.
The study aimed to determine the role of international cooperation of EU countries on the information exchange in the investigation of cryptocurrency-related crimes. The research employed a combination of general scientific methods (description, analysis, synthesis, etc.) and empirical methods, particularly content analysis. The author used descriptive, comparative methods and analysis of legal acts. The conducted research gave grounds to provide suggestions for improving the legal framework of international cooperation of the EU countries on the information exchange in the investigation of cryptocurrency related crimes; the adoption of the basic EU document on combating criminal activity using cryptocurrency is substantiated, proposals for its adoption are formulated in the work. Prospects for future research may include studies on the further development of regulations for the exchange of information in the investigation of cryptocurrency crimes.
This study aims to assess the impacts that cryptocurrencies and blockchain have on financial accounting and auditing through eight interviews. The results allowed the authors to conclude that cryptocurrencies are considered cryptoassets, which can be classified in different ways, but above all, as inventories and intangible assets. Respondents believe that cryptocurrencies will have an impact on auditing, triggering a dematerialization of paper in its various stages. Therefore, the auditor will spend less time collecting and verifying information, focusing on activities with greater risk and complexity. It will also be possible to carry out an audit in real time and on the entire population. Regarding audit risk, accounting and auditing standards respond indirectly to the topic, yet the risk is considered high for most auditors, as they did not deepen their knowledge on the topic. Despite limitations, such as sample size, this study contributes to understanding the impact of cryptocurrencies on financial accounting and auditing in Portugal, being a pioneer in this field.
Финансовый университет при Правительстве Российской Федерации, Москва, Россия, Грачева Анна Дмитриевна, Лебедев Игорь Александрович, Финансовый университет при Правительстве Российской Федерации, Москва, Россия · 6 authors
The article deals with the problem of using cryptocurrencies to legalize income received from the sale of narcotic substances. Due to the active development of digital technologies, the availability and ease of use of cryptocurrencies, cases of using crypto markets for drug trafficking have become more frequent. In this regard, the authors assessed the scale of the problem and the volume of proceeds from drug trafficking using cryptocurrencies, and also considered the main territories characterized by the implementation of such activities. In conclusion, measures were proposed to minimize the risks of using cryptocurrencies to legalize income from drug trafficking.
The purpose of the study is to study smart contracts, which are one of its main components, which support the main connection between the parties forming social relations, using the innovative technology —blockchain technology. It is focused on the analysis of the formation ofsmart contracts and the peculiarities of legal regulation in domestic and international relations. To form smart contracts, its general concept and specific features, the potential of blockchain technology in forming smart contracts are studied. Priorities and weaknesses of the technological system in the formation of smart contracts are revealed. Foreign experiences have been studied, and the basis of the legislation of Kazakhstan, including civil law legislation, has been studied for the implementation of smart contract formation technology mechanisms. The advantages and disadvantages of smart contracts, which play an important role in the implementation of blockchain technology, are discussed, and the situations that allow them to be prevented are explained. As a result of the research, the legal basis for the introduction of this information and communication technology into the Kazakh legislation was determined. Conclusions about smart contracts, which rapidly develop blockchain technology, are important as scientific research opens the way for legal research in this direction, considering contractual relations in social relations as a tool for improving them. The practical significance of the research will be to increase the efficiency of the measures taken in the formation of smart contracts, to contribute to the development of electronic contractual relations that allow the formation of public relations at a high-quality legal level, and as a result, to create the basis for social and economic development. Research results can be used in the formation of smart contracts, public and quasi-public procurement, public service provision, and many other areas.
Open access
Digital Transformation in Law
Legal, Health, Environmental and COVID-19 Challenges
Objective : to answer the question whether the authors’ moral rights the in the digital environment correspond to their original purpose, and to determine the impact of the development of social networking platforms, artificial intelligence technologies and non-fungible tokens (NFT) on the transformed role and features of the protection of the author’s moral rights under modern conditions. Methods : the research is based on historical-legal, comparative-legal and formal-dogmatic methods. Legal institutions and legal practice on the issue of protection of the author’s moral rights are subjected to critical analysis. Results : the genesis and normative fixation of the author’s moral rights are investigated in historical retrospect. It is noted that at present the protection of these rights is insufficiently regulated at the international level, while national copyright law, for example, of continental European states, provides a sufficiently strong protection of the author’s moral rights; however, the effectiveness of the latter is weakening in the digital age. The paper analyzes the changing landscape of copyright relations caused by technological progress: in social networks, in the generation of works by artificial intelligence, and in the creation of digital works of art. The thesis is substantiated that the author’s moral rights are undesirable in the context of social platforms. The paper proposes solutions to the issues of authorship of works created by artificial intelligence, violation of author’s rights, and integrity in case of full or partial borrowing of a work to generate a new work by artificial intelligence. The role of NFT technologies in solving the problem of preserving the author’s moral rights is defined. Scientific novelty : the work fills a gap in research on the relationship between copyright and technological development. It identifies and evaluates the innovations in the purpose and content of the author’s moral rights, caused by the processes of digitalization, and attempts to solve the problem of the author’s rights compliance with technological progress. Practical significance : the obtained results may serve as a conceptual basis for further development and improvement of national legislation and international legal regulation in the field of copyright protection, transformation of the objectives, role and place of the author’s moral rights in the digital environment.
The article “Legal Regulation of Cryptocurrency and Cryptocurrency Operations in the European Union” offers a comprehensive examination of the evolving legal landscape surrounding cryptocurrencies within the European Union (EU). It begins by defining cryptocurrencies, highlighting their unique characteristics such as decentralization, volatility, and potential for misuse. These features pose significant regulatory challenges, as traditional legal frameworks may not be fully equipped to address them. The article delves into the EU’s response to these challenges. It outlines the various legislative measures that have been implemented to regulate cryptocurrencies and related operations. These measures aim to strike a balance between fostering innovation in the digital economy and ensuring consumer protection and financial stability. The article discusses the implications of these regulations, noting that while they have brought some clarity and security to the sector, they also risk stifling innovation if not carefully calibrated. The article explores the ongoing debates within the EU regarding the appropriate regulatory approach to cryptocurrencies. It underscores the need for a nuanced understanding of the technology and its potential impacts. The article argues that regulation should not merely react to the challenges posed by cryptocurrencies but should also anticipate future developments to remain effective and relevant. The article concludes by emphasizing the importance of dialogue and collaboration among regulators, industry stakeholders, and the public in shaping the regulatory approach to cryptocurrencies. It suggests that such engagement can help ensure that regulations are not only responsive to current issues but also adaptable to future changes. The article provides a thorough and insightful analysis of the legal regulation of cryptocurrency and cryptocurrency operations in the European Union. It underscores the complexity of the issue and the need for a dynamic and forward-looking regulatory approach. The article serves as a valuable resource for anyone interested in understanding the intricacies of cryptocurrency regulation in the EU.
Abstract: Almost a century ago, the philosopher, cultural critic, and essayist Walter Benjamin grappled with the evolution of "The Work of Art in the Age of Mechanical Reproduction." Although art had experienced imperfect imitations and reproductions throughout history, advancements like photography and film in Benjamin's time drastically heightened the efficiency and fidelity of replication. This shift raised profound questions about the notions of "originality" and "authenticity," distancing reproduced works from the unique "aura" of their originals. Fast forward to our present digital age, where a few clicks or lines of code can effortlessly generate flawless replicas, improved duplicates, or even entirely fabricated "deep fakes." However, the advent of immutable blockchain ledgers, pioneered by Bitcoin, Ethereum, and other cryptocurrencies, and harnessed by non-fungible tokens (NFTs), is ushering in a new era of originality. Crucially, this new era encompasses provable originality and authenticity, paired with indisputable ownership and robust programming capabilities. Similar to how Bitcoin resolved the "double spending" predicament in our digital age, NFTs are now initiating a transformative shift in conventional notions of ownership and provenance while introducing novel forms of originality. Despite existing solely in digital form, crafted through programmable code, smart contracts, and technological protocols, an NFT can maintain its distinctive aura and original essence.
Open access
Blockchain Technology Applications and Security
Neuroethics, Human Enhancement, Biomedical Innovations
The aim of this chapter is to extract and analyze transaction data about the non-fungible token (NFT) market, and objectively present its development status, characteristics, and relationship with other crypto assets. Specifically, our research is divided into two major parts. First, we analyze the basic features of the NFT market by selecting five representative NFT tokens, Decentraland (MANA), Axie Infinity (AXS), Theta Network (THETA), Enjin Coin (ENJ), Sandbox (SAND). We describe the evolution and characteristics of NFT tokens and markets through a series of statistical indicators. Second, we examine the spillover effects (or dynamic relationship) between the above NFTs and mainstream crypto assets based on GARCH-type models, including Bitcoin (BTC) as well as Ethereum (ETH) and Solana (SOL), which issue the most NFTs. Overall, while NFTs have already made a significant impact in industries such as art, sports, law, ticketing, digital collectibles, and gaming, they may also expand to financial markets and the digital world at large in the future. However, so far, the NFT market is mainly speculative and is very closely linked to other cryptocurrency markets. Without further optimization and improvement, the potential of NFT cannot be realized.
The aim of this chapter is to provide a brief but substantive history of non-fungible tokens (NFTs) through a thematic approach. It identifies four key themes that have played a determining role in the evolution of NFTs thus far: Leisure & ludic pursuit, the immiseration of artists, the Covid-19 pandemic and a global monetary expansion-contraction cycle, as well as the unraveling of major crypto entities. The chapter argues that, when taken together, these four factors give an incisive view into how NFTs have evolved in such a short span of time, and the chapter thus offers researchers a useful guide for encapsulating the growth of the NFT space.
이 글에서는 DAO가 무엇인지부터 시작해서 DAO의 장점과 단점, 법적 과제, 그리고 DAO의 몇 가지 예를 설명했다. 인간의 개입 없이 기능하는 탈중앙화 자율조직은 공상과학 소설에서나 나올 법한 것처럼 보일 수 있지만, 블록체인 기반 DAO는 비트코인이 탄생한 이래로 현실이 되었다. DAO는 Decentralized Autonomous Organization의 약자로 ‘Dao’로 발음된다. 한국어로는 ‘탈중앙화 자율조직’으로 번역하며, 영어로 ‘DAO’라고 쓰는 것은 드물지 않다. 분산화된 자율조직이라고 쓰는 경우도 있으나 말 그대로 DAO는 탈중앙화되고 자율적으로 기능하는 조직이다. DAO는 블록체인의 응용분야 중 하나이다. 비트코인의 발자취를 따라 많은 암호화폐 프로젝트, 서비스 및 플랫폼이 DAO로 등장했다. 또한 자동화, 원격근무 등 기업과 업무 스타일이 급격히 변화함에 따라 일부 기업은 Consensys 만큼 급진적이지는 않더라도 DAO/DAC가 될 것이다.<br/> 종래의 조직에서는 중앙에서 의사결정을 하는 이사회 같은 조직이나 대표이사 혹은 사장과 같은 사람이 있고, 그 결정에 따라 조직이 움직였다. 반면, DAO에서는 중앙조직 대신 규칙이 존재한다. 사람들의 활동은 이러한 규칙에 따라 수행되며 중앙조직 없이 자동화된 작업을 수행할 수 있다. 그러나 자동화되어 있지만 의사결정, 구현 및 사용에 인간의 개입이 포함되며 규칙기반 심의활동도 수행된다. 블록체인 기반 DAO 구현은 이러한 규칙을 프로그램으로 설명하며, 이는 종종 오픈 소스 스마트 계약으로 구현되고 커뮤니티에서 유지 관리된다.<br/> ICO를 통해 자금을 조달하고, 자금을 관리하고, 투명하고 공정한 서비스를 제공하기 위해 스마트 계약을 기반으로 다양한 기업과 프로젝트가 분산되고 자율적으로 기능하는 미래가 멀지 않을 수 있다. 자본주의 사회의 문제점으로 지적되어 온 자본집중의 불균형과 자본가와 노동자의 틀은 DAO에는 존재하지 않는다. 조직의 창립자라고 해도 기본적으로 다른 참가자와 마찬가지로 토큰 보유자 중 한 명일뿐이며 회사의 관리자, 정규직 직원 및 계약직 직원 간의 구분은 없다.<br/> 탈중앙화 사회가 실현되면 같은 생각과 희망을 가진 사람들이 위치나 지위에 관계없이 모일 수 있게 될 것이다. 다양한 사람들이 모일수록 더 많은 정보와 지식이 축적되어 선순환이 이루어지고 이는 조직의 발전으로 이어지게 된다. 그 결과 사람들이 계속 발전하는 조직에 모일 것이고, NFT나 DAO와 같은 새로운 형태의 자금 조달이 가능해질 것이다.<br/> DAO를 시작하려면 Blockchain 기술의 특성을 정확히 이해해야 한다. 향후 DAO를 시작하고자 하는 조직 운영자는 충분한 학습을 해야 할 것이다. 정부에서도 창업 초창기부터 진행해 온 블록체인 비즈니스의 지식과 개발 노하우를 바탕으로 자율적으로 프로젝트를 추진하는 조직의 출범을 지원해야 한다. 이러한 정책지원은 DAO 프로젝트 운영에 없어서는 안 될 필수 요소이다. 또한 많은 DAO 운영에서 사용하는 Discord의 출시를 지원해야 한다.<br/> DAO에는 많은 장점이 있지만 몇 가지 단점(과제)도 있다. 예를 들어, 다음 몇가지가 주요 항목이다. 우선 조직으로서의 느린 의사결정이 장애물이다. 또한 입법이 뒤처지고 있다. 또한 DAO 스마트 계약은 전 세계적으로 분산된 노드에서 실행되므로 국가 및 지역마다 다른 법률로 인해 ‘법의 충돌’ 문제가 발생할 수 있다. 비트코인과 같은 암호화폐에 대한 규제는 국가와 지역마다 다르며, 더 극단적인 경우 탈중앙화 예측 시장인 어거(Augur)는 어떻게 사용하느냐에 따라 도박 범죄를 구성할 수 있다고 한다. 지난 몇 년 동안 기술적인 문제에 대한 해결책이 등장했지만, 법적 문제에 대한 DAO는 새로운 조직 형태이며, 규제와 충돌하면서 시간이 지남에 따라 점차 명확해질 것으로 예상된다.
The article delves into a comparative study of the legal regime of smart contracts in Russia, Germany and the United States. In-depth analysis of the concept, normative support, technological and legal nature of smart-contracts is carried out, the areas of application of this tool in civil law transactions and other legal relations are highlighted. Significant conclusions were obtained. Firstly, in the legal systems under consideration there is still no unambiguous definition of a smart contract. Secondly, a smart contract is understood to a greater extent as a program code embedded in websites or mobile applications, providing a number of elements of the procedural side of various transactions, rather than as an equivalent of a civil law contract. Thirdly, the areas of application of smart contracts are constantly expanding, they are used in the work of e-government, banking, e-commerce, electoral processes, and other legal relations. This requires the active activity of legislators in the countries in question.
The prevalence of financial fraud poses significant challenges to global financial stability, resulting in billions of dollars in losses annually and undermining consumer trust in financial institutions. With the increasing complexity and volume of financial transactions driven by the rapid growth of digital banking and e-commerce, traditional fraud detection methodologies have proven inadequate in addressing the scale and sophistication of modern fraudulent activities. This paper seeks to investigate and delineate the development of advanced data science and artificial intelligence (AI) methodologies aimed at detecting, mitigating, and preventing financial fraud in real-time systems. By exploring a range of state-of-the-art models, algorithms, and technologies, this research aims to provide comprehensive insights into how these systems can be deployed effectively to safeguard financial operations and maintain systemic integrity. Financial fraud detection is inherently challenging due to the dynamic and evolving nature of fraudulent tactics. The emergence of techniques such as machine learning (ML) and deep learning (DL) has significantly enhanced the ability to identify complex, non-linear patterns within large datasets that were previously undetectable by conventional rule-based systems. This paper focuses on the integration of supervised, unsupervised, and semi-supervised learning methods, as well as hybrid approaches that combine different algorithmic strategies for greater detection accuracy. In the context of financial fraud, algorithms such as decision trees, support vector machines (SVM), random forests, and neural network architectures have been adapted and fine-tuned to operate under stringent latency constraints inherent in real-time processing systems. Moreover, the adaptation of generative adversarial networks (GANs) for synthetic data generation and anomaly detection is examined to bolster the robustness and adaptability of fraud detection models. A critical aspect of this research lies in the exploration of feature engineering and data pre-processing techniques to optimize the input datasets for AI models. Given that the quality of data directly influences the efficacy of predictive algorithms, innovative feature extraction, dimensionality reduction, and data augmentation methods are discussed in detail. The use of time-series analysis and sequence modeling, especially through recurrent neural networks (RNNs) and long short-term memory (LSTM) networks, is emphasized for fraud detection in transactions that require contextual and sequential understanding. Such methodologies enable the capture of temporal dependencies that are essential for detecting anomalous behaviors indicative of fraudulent activities. Additionally, the paper addresses the significance of explainable AI (XAI) in the realm of financial fraud prevention. Trust in AI-driven fraud detection systems can be undermined by their "black-box" nature, where decision-making processes remain opaque to users and regulators. As such, incorporating interpretable models and explainability tools is essential for meeting regulatory requirements and fostering confidence in automated systems. This research evaluates various XAI techniques, such as SHAP (SHapley Additive exPlanations) and LIME (Local Interpretable Model-agnostic Explanations), and their integration with AI models to ensure that the decision-making process can be audited and understood by human analysts. The paper also explores the real-world applicability of AI and data science-based fraud detection through case studies of financial institutions and tech firms that have implemented such systems. These case studies illustrate the challenges faced, such as the need for real-time processing, false positive management, and system scalability. Furthermore, it provides an analysis of the trade-offs between model accuracy, computational resources, and real-time performance requirements. The dynamic nature of fraud tactics demands adaptive learning mechanisms that can update models in response to new data, which brings attention to the necessity of continuous learning and model retraining protocols. Techniques such as online learning and active learning are discussed as viable solutions to ensure that models remain effective against emerging fraud patterns. The challenges of data privacy and security are also examined, given the sensitive nature of financial data. AI and ML models, particularly those deployed in real-time environments, must comply with stringent data protection laws such as the General Data Protection Regulation (GDPR) and regional financial regulations. The implications of privacy-preserving machine learning, differential privacy, and federated learning as methods to process data without compromising individual user privacy are evaluated. This aspect is critical for building trust between financial institutions and customers, ensuring that fraud detection efforts do not come at the expense of user data confidentiality. Lastly, the research covers future directions and emerging trends that could shape the landscape of financial fraud detection and prevention. The integration of blockchain technology and distributed ledger systems is considered for enhancing transparency and reducing opportunities for fraudulent activities. Advanced threat intelligence platforms that leverage cross-industry data sharing and the collective insights of AI models trained on diverse datasets are also discussed as potential avenues for mitigating fraud in a proactive manner. The role of collaborative networks and the potential for AI-driven fraud detection to be part of a larger cybersecurity framework are posited as next-generation solutions to create a more secure financial ecosystem. The findings of this research underline the significance of continuous advancements in data science and AI to stay ahead of increasingly sophisticated financial fraud tactics. While AI models have shown promising capabilities in detecting fraudulent activities in real-time, challenges such as model interpretability, scalability, and adaptability remain prominent. This paper concludes with a strategic roadmap for financial institutions, policymakers, and technology developers to enhance the efficacy of fraud prevention strategies, which include fostering innovation in AI-driven solutions, promoting the development of robust real-time processing infrastructures, and encouraging collaborative research efforts that leverage cross-sector knowledge and resources.
Aybika Beksultanova, Timur Aygumov, Alexey Tkachenko
Currently, one of the most vital issues concerns dealing with smart contracts is security. Concerns over inefficiency, security, and fraud are grounded, and ignoring them when using the blockchain network to create smart contracts can result in extremely high additional costs. This article covers the most common tools for auditing smart contracts. The purpose of this article is to compare the most popular software tools to analyze smart contract security. For this purpose, the following types of smart contract vulnerabilities were investigated. This article provides examples of the major smart contract vulnerabilities, and given the relevance of digital agreements and the catastrophic consequences of errors, recommendations have been offered to redress smart contract vulnerabilities.
В статье рассмотрены особенности цифровых финансовых активов (ЦФА) – качественно новой экономической категории, имеющей значительный потенциал в качестве инструмента инвестирования и финансирования бизнеса. Представлена краткая характеристика правового регулирования ЦФА, необходимая для понимания их сущности и состава входящих объектов. Выявлены основные преимущества, недостатки и возможные перспективы развития ЦФА в России. Introduction. Among the most promising cutting-edge tools that can significantly transform and improve the efficiency of business operations are, first and foremost, artificial intelligence, digital and cloud technologies, distributed ledger technologies, robotization, and many others. The emergence of fundamentally new objects, such as digital rights, including digital financial assets, cryptocurrency and others, necessitates an examination of their economic substance and an evaluation of the opportunities and challenges associated with their practical application. This article aims to present the findings of a study on the economic nature of digital financial assets (DFAs), their legislative and regulatory mechanisms, the benefits and risks they pose, and an analysis of their potential use in Russia. Results. The article focuses on the critical aspects of legal regulation of the new economic categories, including digital rights and DFAs. It uncovers their essence and features and presents various perspectives of specialists on the primary characteristics of DFAs. The article outlines the crucial prerequisites for the development of the global and domestic DFA market (the active use of blockchain technology, widespread use of cryptocurrencies, and global and macroeconomic changes). It provides data on the volume of transactions with DFAs in Russia for 2022-2023 and an evaluation of market growth prospects. The article also presents the main advantages of DFAs, such as investment attractiveness, security and transparency of records entered into the blockchain, the possibility of "splitting" a significant investment asset into parts, the lack of risk of unauthorized changes, and others. It also discusses the challenges of their practical use. The study concludesthat the use of DFAs as a tool for attracting investment (also by medium and small businesses) and financing, with an understanding of their inherent risks, will facilitate effective financial and investment decision-making. It will also assist in the optimization of business processes and interactions with business partners.
Abstract This chapter examines the legal nature of lex monetae in order to establish what control rights a non-state creator of a crypto-payment token which is accepted by a state might have over the circulation of that token after it passes into currency. This analysis draws heavily on FA Mann’s work on exchange controls, and his consideration of the basis for their recognition by courts other than the courts of the monetary sovereign. It concludes that there can be no private lex monetae and that existing private law doctrines do not provide a basis for the recognition of such control rights.
Abstract There is substantial cross-national variation in the level of regulatory clarity surrounding cryptocurrencies. What explains these differences? And, more broadly, what drives the divergent historical development of market regulation in different jurisdictions? To answer these questions, we present a new conceptual framework centered on the concept of market legibility. This term, inspired by the sociological literature, refers to the extent to which markets are made legible to the state through standardization. We contend that state supply of, and market demand for, legibility drives the primary political-economic dynamics of market regulation. Specifically, these factors combine to produce ideal type states of legibility that correspond to both distinct stages of market development and the relative level of regulatory clarity in any one jurisdiction. This framework is utilized to conduct a comparative historical analysis of cryptocurrency regulation in the EU, US, UK, and Japan. By performing these tasks, this article corrects the common assumption that states are constantly striving to impose their authority on unwilling markets. It demonstrates instead that state and private actor preferences to make markets legible vary, conditioning, in turn, the political economy of regulatory governance.
The use of new technologies, including blockchain and NFT, can become a tool to ensure protection of rights and legitimate interests of copyright holders and stimulate innovation in various fields. The paper considers two legal problems related to the deposit and turnover of the results of intellectual activities, including copyrighted works. The first problem is the possibility of using blockchain technology to deposit such works. The paper provides an overview of main methods of fixing the fact of existence of a copyrighted work, including options without depositing and with depositing. The author concludes that depositing an object of copyright, including blockchain, does not mean its use in the sense of civil law. The second problem is the turnover of rights to deposited objects. The author suggests the best way for the copyright holder, i. e., depositing the result of intellectual activity with subsequent transfer of the NFT to the copyright holder. This solution will make it possible to equate the transfer of NFT with the transfer of the exclusive right to the work.