A última década testemunhou a consolidação das Finanças Descentralizadas (DeFi) e a busca por maior eficiência nos mercados de capitais através da tokenização de Ativos do Mundo Real (RWA). Este artigo propõe o Unified Structured Finance Protocol (USFP), uma arquitetura DeFi híbrida projetada para a tokenização e negociação de produtos estruturados (como Debêntures, ETFs e COEs) no contexto regulatório brasileiro. O problema de pesquisa central é: Como desenvolver um <i>framework</i> de protocolo DeFi que preserve a eficiência e a liquidez da descentralização, ao mesmo tempo em que acomoda os requisitos rigorosos de <i>Anti-Money Laundering</i> (AML), <i>Know Your Customer</i> (KYC), e relatórios regulatórios exigidos para a tokenização de valores mobiliários no Brasil? Os objetivos são: 1) Propor o <i>Unified Structured DeFi Note</i> como um meta-ativo tokenizado. 2) Detalhar uma arquitetura de protocolo que integra um Módulo de Compliance (<i>RegTech</i>) e um AMM Regulado (RL-AMM). 3) Analisar o encaixe conceitual dessa arquitetura no panorama regulatório brasileiro (CVM/BACEN). A contribuição principal (Tese) é que a viabilidade de protocolos DeFi para o mercado de capitais brasileiro reside na separação funcional entre a liquidação descentralizada (<i>trustless</i>) e o acesso permissionado (<i>trusted</i>) [8]. Esta abordagem define um novo modelo de Infraestrutura de Mercado de Capitais Programável (<i>D-CMI – Decentralized Capital Market Infrastructure</i>), essencial para a tokenização de RWA regulamentados. A centralização intencional dos pontos de controle de acesso (KYC/AML) e de relatórios permite que o regulador mantenha a supervisão, enquanto as operações de <i>payoff</i> e negociação se beneficiam da eficiência <i>on-chain</i>.<br>
Signing documents using electronic signature services can pose security risks due to problems pertaining to signature tracing, forging, and identity verification. These services also rely on centralized networks, which require that the signing parties trust the provider’s ability to keep their documents and sensitive information safe. However, the shift to digital contracting remains essential, as the traditional contracting process is often complex and inefficient. This work proposes a distributed network model that allows any two parties to sign a legally binding agreement using verifiable digital signatures. This eliminates the need for third-party mediation, which results in a more cost-effective and time-efficient contracting process. Integrating a hybrid encryption scheme and full client-side processing in this model ensures the confidentiality of the contract and the privacy of the parties involved. This, in addition to the model’s emphasis on minimizing traffic and power consumption, results in a highly scalable and robust ledger, with the potential for integration with blockchain or other Distributed Ledger Technologies (DLTs). In conclusion, this work is a step forward towards the adoption of digital contracts and their integration with current legal frameworks. Eventually, it could aid in clearing the confusion that surrounds smart contract technology.
In recent years, security incidents stemming from centralization defects in smart contracts have led to substantial financial losses. A centralization defect refers to any error, flaw, or fault in a smart contract's design or development stage that introduces a single point of failure. Such defects allow a specific account or user to disrupt the normal operations of smart contracts, potentially causing malfunctions or even complete project shutdowns. Despite the significance of this issue, most current smart contract analyses overlook centralization defects, focusing primarily on other types of defects. To address this gap, our paper introduces six types of centralization defects in smart contracts by manually analyzing 597 Stack Exchange posts and 117 audit reports. For each defect, we provide a detailed description and code examples to illustrate its characteristics and potential impacts. Additionally, we introduce a tool named CDRipper (Centralization Defects Ripper) designed to identify the defined centralization defects. Specifically, CDRipper constructs a permission dependency graph (PDG) and extracts the permission dependencies of functions from the source code of smart contracts. It then detects the sensitive operations in functions and identifies centralization defects based on predefined patterns. We conduct a large-scale experiment using CDRipper on 244,424 real-world smart contracts and evaluate the results based on a manually labeled dataset. Our findings reveal that 82,446 contracts contain at least one of the six centralization defects, with our tool achieving an overall precision of 93.7%.
This study examines the legal challenges associated with the commercialization of non-fungible tokens (NFTs) in Europe and Brazil. This paper provides a comprehensive analysis of the European and Brazilian legal frameworks, identifying key legal challenges related to intellectual property rights, consumer protection, taxation, and anti-money laundering (AML) regulations. Through a comparative analysis, we highlight the similarities and differences between the two jurisdictions, as well as best practices for addressing these legal challenges. The paper also discusses recent developments and court decisions, demonstrating the evolving legal landscape for NFTs in both regions. The findings of this paper have significant implications for the future of NFTs in Europe and Brazil, as well as for the broader digital economy, and offer valuable insights for policymakers, legal professionals, and market participants. Additionally, the paper identifies areas for further research, including the impact of technological advancements, the role of smart contracts, cross-jurisdictional issues, and the relationship between NFTs and traditional intellectual property rights.
Kriptovaluta jest oblik digitalne valute koja funkcionira na principima kriptografskih algoritama. Iako posjeduje sve karakteristike tradicionalnog novca, ne podržava ga nijedno državno tijelo i postoji isključivo u elektroničkom obliku. Njegov cilj je funkcionirati kao neovisan, decentraliziran i siguran sustav plaćanja koji je kriptografski šifriran. Među golemim nizom kriptovaluta, Bitcoin ima istaknutu poziciju kao jedna od najvećih i najznačajnijih. Bitcoin funkcionira kao decentralizirana, distribuirana i anonimna mreža plaćanja, koristeći virtualnu valutu unutar svog okvira. Ono što Bitcoin razlikuje od konvencionalnih elektroničkih metoda plaćanja poput kreditnih kartica ili Paypala je njegova otpornost na zamrzavanje, oporezivanje i praćenje transakcija. Blockchain s druge strane, služi kao digitalna knjiga koja sadrži ključne informacije o transakcijama. Ove baze podataka ne samo da olakšavaju bilježenje transakcija kriptovalutama, već također mogu pohranjivati i čuvati podatke koji se odnose na različite teme.
The entry of new technological infrastructures into the financial markets poses serious concerns about the misuse of the economic system for illicit purposes, such as money laundering and financing of terrorism. Although there are cases in which this connection has already been discovered by malicious actors, distributed ledger technologies can nevertheless represent a powerful tool at the disposal of competent authorities to trace illicit flows and to better monitor risks in financial markets. However, this possibility may go through an interdisciplinary analysis of the phenomena. The search for alternative systems to move funds, rather than the traditional financial intermediaries, such as banks, is not a new circumstance and not necessarily for criminal purposes. Nevertheless, some of the already-known value transfer systems may benefit from the use of distributed ledger technology and make their detection more difficult. The European institutions are discussing the needed legislative packages to enforce the current regulations and to extend their application to the crypto space, as well as the establishment of a new competent authority.
Geleneksel olarak sahiplik kanıtı kâğıt üzerinde olan sektörlerin, özellikle gayrimenkul sektörünün, hızla artan işlem hacmi ve dijital dönüşümle birlikte, dijital varlıklar ve blok zinciri teknolojileri kullanılarak daha şeffaf, güvenli ve verimli bir hale gelmesi kaçınılmaz olmuştur. Bu yeni yaklaşım, gayrimenkul sahipliğinin dijital ortamda aktarılması ile yatırımcıların gayrimenkul varlıklarına daha kolay ve hızlı erişim sağlamalarına olanak sağlayabilir. Non-Fungible Tokens (NFT'ler) ve onların daha özeleştirilmiş karşılığı olan Fractional Non-Fungible Tokens (F-NFT'ler) gibi yeniliklerin ortaya çıkmasına yol açmıştır. F-NFT'ler, varlıkların kesirli mülkiyetini sağlayarak, NFT'lerin güvenli ve şeffaf özelliklerini gayrimenkul uygulamaları için gerekli olan likidite ve demokratik yönetimle birleştirebilir. Bu çalışmada, F-NFT'leri dijital senetler olarak kullanarak ortak mülkiyeti doğrulayan ve böylece yönetişimi iyileştirip varlık yönetimini demokratikleştiren bir sistem önermektedir. Önerilen çerçeve, blok zincir teknolojisini, akıllı sözleşmeleri ve merkezi olmayan otonom organizasyonları (DAO'lar) entegre ederek, geleneksel gayrimenkul sistemlerinin yüksek giriş engelleri, likidite eksikliği ve karmaşık yönetişim mekanizmaları gibi verimsizliklerini ele almaktadır. F-NFT'lerin kapsamlı teorik ve pratik uygulamasını sağlayarak, çalışmamız geleneksel mülkiyet modellerinin verimsizliklerini vurgulamakta ve gayrimenkul işlemlerinde yenilikçi bir değişim sunmaktadır. Çalışma, sistem içindeki karmaşık süreçleri ve etkileşimleri aydınlatan ve yaklaşımımızın otomatik, şeffaf ve verimli doğasını vurgulayan yenilikçi dizilim ve sınıf diyagramlarının kullanımı ile öne çıkmaktadır. Bu diyagramlar, gayrimenkul varlıklarının ihraç edilmesi ve parçalanması, F-NFT'lerin dağıtımı, mülkiyetle ilgili kararların yönetimi ve kira işlemlerinin yürütülmesinde hükümet, akıllı sözleşmeler ve mülk sahipleri gibi kilit aktörlerin rollerini göstemektedir. Bulgular, F-NFT'lerin gayrimenkul yatırımlarına erişimi demokratikleştirebileceğini, likiditeyi artırabileceğini ve daha kapsayıcı yönetişim mekanizmalarını kolaylaştırarak merkezi olmayan ve verimli bir gayrimenkul piyasasının yolunu açabileceğini önermektedir. Ancak, düzenleyici çerçevelerin oluşturulması ve likidite mekanizmalarının iyileştirilmesi konularında zorluklar devam etmektedir. Gelecek araştırmalar, F-NFT'leri geleneksel pazarlarla entegre etmeye, güçlü ikincil pazarlar geliştirmeye ve dijitalleşmiş, merkezi olmayan bir gayrimenkul ortamının potansiyelini tam olarak gerçekleştirmek için yenilikçi kullanım durumlarını araştırmaya odaklanacaktır. Bu çalışma, tek varlık sahipliğinden işbirlikçi ve dijitalleşmiş bir yaklaşıma geçişi önererek, gayrimenkul yatırımlarının erişilebilir, adil ve blok zincir teknolojisinin yenilikleriyle yönetildiği bir geleceğin temelini atmaktadır.
In recent years, particularly with the Ethereum blockchain’s advent, smart contracts have gained significant interest as a means of regulating exchanges among multiple parties via code. This surge has prompted the emergence of various smart contract (SC) programming languages, each possessing distinct philosophies, grammatical structures, and components. Conse-quently, developers are increasingly involved in SC programming. However, these languages are platform specific, implying that a transition to another platform necessitates the use of different languages. Additionally, developers require a certain level of control over SCs to address encountered bugs and ensure maintenance. To address these developer-centric challenges, this paper presents SCEditor, a novel Eclipse Sirius-based prototype editor designed for the visualization, design, and creation of SCs. The editor proposes a means of standardizing the usage of SC programming languages through the incorporation of graphical syntax and a metamodel conforming to Model-Driven Engineering (MDE) principles and SC construction rules to generate an abstract SC model. The efficacy of this editor is demonstrated through testing on a voting SC written in Vyper and Solidity languages. Furthermore, the editor holds potential for future exploitation in model transformation and code generation for various SC languages.
Douglas J. Cumming, Johannes Fuchs, Paul P. Momtaz
Abstract We explore the risk–return trade‐off in international regulation of cryptocurrency markets using a unique sample of regulations implemented between July 2018 and April 2023. Various regulation types have reduced risk in cryptocurrency markets while having differential impacts on raw and risk‐adjusted returns. Given the legal challenges for national jurisdictions in regulating international markets, we develop a digital asset regulatory strength index (DARSI) and study the impacts of national regulatory enforcement quality on the risk and return effects of cryptocurrency regulations. We find that strong enforcement quality, measured based on the strength of formal institutions, amplified the regulations' intended effects. The amplification effect is more pronounced for regulations announced by a financial regulator and for more liquid tokens. Consistent with the view that normative compliance‐seeking facilitates the adoption of norms, we also find that cultural uncertainty avoidance amplifies regulations' intended effects.
Corporate governance encompasses a set of processes, customs, policies, laws, and institutions that affect how a corporation is directed, administered, or controlled. Technology both enhances and disrupts the traditional board-centric corporate governance system, enhancing efficiency and transparency while introducing new challenges and risks. In this work we examine three key themes comprehensively: the redefinition of information and information asymmetry through the generation of and access to big data; blockchain technology’s transformative potential for aggregating preferences and exercising shareholder voting rights while blurring the line between securities and tokens; and the impact of smart contracts and their underlying infrastructure on the expansion of contracts and the implementation of decentralized governance through decentralized autonomous organizations. These innovative technological solutions empower stakeholders to exercise governance rights effectively, but their complexity also gives rise to new barriers and inequalities. As technology evolves, collaboration among researchers, policymakers, and practitioners is imperative to ensure that corporate governance remains effective and responsive to the current dynamic business environment.
Cryptocurrency, powered by blockchain technology, has revolutionized the financial landscape, captivating the attention of investors, technologists and governments worldwide. This paper provides a comprehensive exploration of cryptocurrency and its underlying technology, blockchain. It delves into the structure and functioning of blockchain, highlighting its decentralized and secure nature. The impact of cryptocurrency on finance is dissected, showcasing how it disrupts traditional financial systems by reducing intermediaries, promoting financial inclusion, enhancing security and transparency and empowering individuals with financial sovereignty. Challenges and regulatory developments are also discussed, reflecting the ongoing evolution of this transformative technology. Cryptocurrency investment and speculation are explored, emphasizing the differences between long-term investment and short-term speculation and the unique risks and opportunities associated with each approach. The integration of cryptocurrencies into diversified investment portfolios is examined, offering insights into their potential role as a hedge and a source of uncorrelated returns. A SWOT analysis summarizes the strengths, weaknesses, opportunities and threats within the cryptocurrency space, highlighting its disruptive potential and the complexities it faces in a dynamic financial landscape. In conclusion, this paper underscores the transformative power of cryptocurrency and blockchain technology while acknowledging the need for responsible adoption and regulation to shape their future impact on finance.
The Regulatory Response and the Current and Future Legal Status The relative newness of non-fungible tokens combined with their complex nature has led to an unclear response from U.S. regulators. The incomplete regulatory scheme has left the market open to the various forms of bad actors common among financial asset classes. Within this article we evaluate the current regulatory status of the cryptocurrency markets and their applicability to NFT Markets. Regulators who are most active in the crypto space include the SEC, CFTC, CFP, and FTC. Because regulatory power is vested differently among the various regulators there exists an inability of any one regulator to adequately address the complex nature of NFTs. To address this inadequacy this article argues that the dispersed regulatory powers should all be granted to the SEC due to its express interest in regulating digital asset markets.
This Conclusion summarizes governmental efforts seeking to regulate cryptocurrencies that are covered in this Primer. They include the first tentative endeavors to provide consumer protection from widespread fraud in the cryptocurrency market through investor alerts. After that attempt proved unsuccessful, financial service regulators began applying their existing regulations to cryptocurrencies by variously labeling this new asset class as “money” that is subject to money transmitter regulations, then as a “security” regulated under the federal securities laws and as a “commodity” regulated by the Commodity Exchange Act of 1936. None of those labels was a good fit for cryptocurrencies. The validity of those regulatory efforts also remain uncertain in light of the “major questions doctrine” that requires congressional action when the regulatory authority of an agency is not clearly defined. The Primer concludes with an analysis of the legislation that is needed to regulate cryptocurrencies effectively.
Purpose This study aims to, firstly, develop a red flag checklist for cryptocurrency Ponzi schemes and, secondly, to test this red flag checklist against publicly available marketing material for Mirror Trading International (MTI). The red flag checklist test seeks to establish if MTI’s marketing material posted on YouTube ® (in the form of a live video presentation) exhibits any of the red flags from the checklist. Design/methodology/approach The study uses a structured literature review and qualitative analysis of red flags for Ponzi and cryptocurrency Ponzi schemes. Findings A research lacuna was discovered with regard to cryptocurrency Ponzi scheme red flags. By means of a structured literature review, journal papers were identified that listed and discussed Ponzi scheme red flags. The red flags from the identified journal papers were subsequently used in a qualitative analysis. The analyses and syntheses resulted in the development of a red flag checklist for cryptocurrency Ponzi schemes, with five red flag categories, containing 18 associated red flags. The red flag checklist was then tested against MTI’s marketing material (a transcription of a live YouTube presentation). The test resulted in MTI’s marketing material exhibiting 88% of the red flags contained within the checklist. Research limitations/implications The inherent limitations in the design of using a structured literature review and the lack of research regarding the cryptocurrency Ponzi scheme red flags. Practical implications The study provides a red flag checklist for cryptocurrency Ponzi schemes. The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags. Social implications The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags. Originality/value The study provides a red flag checklist for cryptocurrency Ponzi schemes.
Este trabajo busca mostrar el aspecto jurídico de las criptomonedas. A tal efecto se inicia con el planteamiento de una serie de conceptos generales básicos así como la historia de estas monedas y su clasificación. Una vez resueltas esas tres cuestiones básicas se describirá la regulación que existe en derecho comparado y en derecho español para ver una imagen general de cómo los Estados afrontan la ordenación de esta delicada materia. Tras este primer acercamiento, el trabajo se centra en aquellos aspectos más relacionados con el ámbito mercantil. Así, se analizará su admisibilidad como contraprestación en el contrato de compraventa o si podrían funcionar como aportación para la conformación del capital social de las sociedades de capital e incluso se planteará el tema de si las personas tanto físicas como jurídicas que operan con estas son o no consumidores. Se realizará una referencia, además, a la minería de criptomonedas y las exchanges. Finalmente intentaremos dar respuesta a dos de las cuestiones que por excelencia siempre surgen cuando se piensa en estos activos: si pueden constituir una estafa y si es conveniente articular una regulación al respecto
Research methodology This case investigation used firsthand statements, reports, testimony and regulatory records. While widely publicized in the popular press, this case is based on primary documents. On their website, many documents were obtained from Wells Fargo’s Corporate newsroom, such as the internal audit report shared with shareholders and press releases. Most other sources were from US regulatory websites (.gov) or congressional testimony. In a few places, quotes and comments came from reliable journalistic sites that cite their sources and follow a journalist’s code of ethics and conduct, ensuring that the reported remarks and data were verified. Case overview/synopsis Since 2016, Wells Fargo Bank has faced multiple customer mistreatment investigations and resultant fines. Public outcry and distrust resulted from Wells Fargo employees creating hidden accounts and enrolling people in bank services without their knowledge to meet desired levels of sustained shareholder growth. Over the past five years, Wells Fargo has been fined and returned to customers and stockholders over $3bn. Wells Fargo executives spent the first year of the scandal citing improper behavior by employees. Leadership did not take responsibility for setting the organizational goals, which led to employee misbehavior. Even after admitting some culpability in creating the extreme sales culture, executives and the Board of Directors tried to distance themselves from blame for the unethical behavior. They cited the organizations’ decentralized structure as a reason the board was not quicker in seeing and correcting the negative behaviors of these ‘bad apple’ employees. Wells Fargo faced multiple concurrent scandals, such as upselling services to retirees, inappropriately repossessing service members’ vehicles, adding insurance and extra fees to mortgages and other accounts and engaging in securities fraud. As time has passed, the early versions of a handful of “bad apples” seem to be only a part of the overall “poison tree.”The dilemma, in this case, is who is responsible for the misbehavior and the inappropriate sales of products and services (often without the customer’s knowledge)? Is strategic growth year-over-year with no allowances for environmental and economic factors a realistic and reasonable goal for corporations? This case is appropriate for undergraduates and graduate students in finance, human resources, management, accounting and investments. Complexity academic level An active case-based learning pedagogical approach is suggested. The materials include a short podcast, video and other materials to allow the faculty to assign pre-class work or to use in the classroom before a case discussion.