Abstract Various states have started providing private law frameworks for blockchain transfers and crypto assets. France and Liechtenstein have adopted the first acts, while a commission of the British government sees no difficulties in extending property protection under the common law to crypto assets. In the USA, an amendment to the Uniform Commercial Code has been suggested, which has not stopped some states going their own, different way. The aim in all cases is to promote the use of modern distributed ledger technology and enhance investor protection. While these initiatives will increase legal certainty, they differ significantly. This has an important downside: there is a strong risk that the blockchain will be made subject to diverging legal rules. Similar to the world of intermediated securities, various national laws will need to be consulted to determine the rights and privileges of investors. This may increase transaction costs, thwart interoperability, and produce thorny conflict-of-laws problems. Markets risk being fragmented into national segments, with an inevitable diminution of their depth and liquidity. As a remedy, this article suggests developing uniform rules for the blockchain. Before national legislators and judges once again divide the world through idiosyncratic rules, the private law of crypto assets should be harmonized to the highest degree possible. Uniform rules should ideally be forged at the global level, by fora like the International Institute for the Unification of Private Law (Unidroit), the United Nations Commission on International Trade Law (UNCITRAL), and the Hague Conference on Private International Law. In the absence of worldwide rules, uniformization of private law should take place at the regional level—for instance, by the European Union. The article makes specific suggestions as to how this can be achieved and what the content of those rules should be.
Bureau for Coordination of Combating Organized Crime and Other Dangerous Types of Crimes on the Territory of CIS Member States, A.G. Kuznetsov
The concepts of cryptocurrency and blockchain technology are interpreted, their nature and content are researched. Various approaches to the regulation of digital currencies in foreign jurisdictions and CIS member states are analyzed. The results of comprehensive analysis of the main criminal risks associated with cryptocurrencies use are presented. Characteristic features of these criminal acts are summarized and systematized.
While the previous Chapter explores the origins of cryptography and explains the functional features of Blockchain, this Chapter provides a robust discussion of the various legal challenges and arguments surrounding this novel technology. While self-regulating markets have some desirable aspects, the anonymous or pseudonymous feature of cryptocurrency has its drawbacks which can lead to more fraud and corruption if left completely unchecked. Primarily, this Chapter focuses on administrative law implications and addresses the question of who could (and should) regulate cryptocurrency markets. The answer depends on how digital assets are classified. For example, if the digital asset is labelled a security, it will fall under the regulatory authority of the SEC but will be limited by the Supreme Court’s decision in SEC v. Howey. Further, this Chapter analyzes the constitutional implications of cryptocurrency–do people have a constitutional right to privacy when making financial transactions? This Chapter discusses the various constitutional rights that may be implicated and the arguments that may be used in future litigation.
Due to the recent explosion of interest in cryptocurrency and all its implications for both new and traditional businesses, there is a growing need for clarity regarding the legal implications of these new technologies and currencies As governments around the world, regulatory agencies, central banks, and other financial institutions are working to understand the nature and meaning of digital currencies, individual investors/traders can make a great deal of money investing in this new space.
Ирина Владимировна Сазонова, Vladlena S. Mazhaeva, Alexandr A. Potkin, Marina A. Kuznetsova
The evolution of digital technologies leads to a tectonic transformation of all spheres of society. Law, as a system of regulating public relations, is changing dynamically along with the development of public relations in different spheres. The development of IT led to the emergence of blockchain technology, which, in turn, became the basis for the development of smart contracts. Smart contract technology, as it develops, causes changes not only in the legislation, but also in the model of interaction between the state and business. Due to smart contracts, a significant part of the rules can be algorithmized, and the regulation can become machine-readable. Purpose of the research: Legal research of the current legislation, the synergy of business, law and economy in the implementation of smart contract technology, determination of theoretical concepts in relation to smart contracts, the content and problems of the application of smart contracts, and identification of the most significant proposals for improving legislation. Methods: The authors of the research used general and specific scientific methods. In the study of the technological foundations of the smart contract, the main methods were analysis, synthesis, analogy, and a system-structural approach.
The authors analyzed the market of cryptocurrency goods, considered the essence of cryptocurrency and proposed the definition of their legal status, studied the experience of some jurisdictions regarding the possibilities and threats of the use and regulation of cryptocurrency.In the process of analyzing the experience of regulating cryptocurrency, we have found similar and distinctive features in some jurisdictions.First, each country, in view of the great potential of the blockchain technology, is trying in one way or another to create a favorable climate for its development.Secondly, the use of cryptocurrency goods is rapidly developing, and their impact on economic processes, both at the international and national levels is increasing, while states are faced with the problem of adapting their tax legislation to the current challenges of the digital economy, since the definition of the status of cryptocurrency does not directly lead to lack of funds to the state budget from operations with these assets.Thirdly, today there are more than 2,000 cryptocurrency is traded through various trading platforms -stock exchanges and can be used to launder proceeds from crime.Thus, it is necessary to develop common standards for the regulation of cryptocurrency and the requirements for such crypto exchange counterparts, through the licensing of operations with cryptocurrencies.At the same time, the important question is what government bodies should exercise such control.
Bitcoin is considered a cryptocurrency and a digital currency, the two most notable characteristics are decentralization and anonymity. Bitcoin has a variety of properties. It could play not only the currency function but also have certain commodity property. To some extent, it can also be seen as an alternative investment option. The price of Bitcoin has stayed at a high level since 2021, but with greater volatility and more obvious amplitude than before. With the risk and potential problems of Bitcoin, the possibility of whether Bitcoin would lead to a big bubble in the financial market has increased. Although the legal status of Bitcoin is varying and having unclear or constantly changing definitions in different countries, the government is strengthening supervision and regulation over digital currency and planning to issue state-controlled currency, which would narrow the space for Bitcoin. Therefore, the possibility that Bitcoin will end up in a bubble is growing. At the same time, it is becoming increasingly clear that Bitcoin would not eventually gain legal tender status, driven by a combination of government denial and a lack of real value.
Ірина Володимирівна Антошина, I. В. Антошина, Ирина Владимировна Антошина, Iryna V. Antoshyna · 13 authors
The development of digital technologies is forcing lawyers to analyze phenomena that have recently looked fantastic. This means that a phenomenon like smart contracts has ceased to be a theoretical idea of improving commodity monetary transactions and now needs a legal justification. In this article, we have analyzed smart contracts in terms of their belonging to digital technologies and the legal field, that is, how they can be equated with legal agreements, if they are their analogues, what application can it find given the legislation in the field of civil (contractual) law. The purpose of our study was to establish a link between smart contacts and their legal regulation, with the feature of smart contract implementation perspectives. The methodology used are systemic and formal-legal methods, as well as methods of analysis and synthesis. The results found highlight that a smart contract is a computer code that is entered into a blockchain network to execute a transaction, the usual expression of which is an agreement between the parties. From a legal point of view, smart contracts are only a part of ordinary agreements (contracts) under the practice of international and national law.
PSC Business against Corruption under the Commissioner for Rights, Elena V. Prudius
The rapid spread of digital technologies, namely – innovative technologies, has set the trajectories for the development of a new stage in the economy of the information society. Such growth is closely related to the emergence of new ways of doing business, new ways of concluding contracts and fulfilling contractual obligations, new forms of existence of contracts and new contractual structures. Thus, there is a need to form a new regulatory environment that provides a favorable legal regime for the emergence and development of modern technologies, as well as for the implementation of economic activities related to their use. Of particular importance in this case is the conclusion of transactions in electronic form. One of the varieties of such transactions can be called a smart contract, which has long been actively distributed in foreign countries, but is not used so often in the Russian Federation. The main reason for the low number of such «smart» contracts is that the legislator has practically not paid attention to the legal regulation of this category. The purpose of the work is to analyze smart contracts, identify problems in their application and propose solutions to the current situation. The following methods were used: historical, comparative law, induction and deduction, analysis and synthesis. The author came to the conclusion that there is no legal definition of smart contracts and the specifics of its conclusion in the current legislation. Cryptocurrency is also closely related to smart contracts, which is also not fully regulated. In this regard, the author suggests ways to solve the identified problems.
The purpose of the study is to analyze the provisions of the novelties of the Russian legislation on digital financial assets and digital currency. The methodological basis was the method of comparative legal analysis, using which the authors identify general patterns and features of the legal status of Russian digital joint-stock companies and decentralized autonomous organizations widely discussed in foreign literature. The results of the study were conclusions about the significant differences between the above organizations. A company issuing digital shares, under Russian law, differs from an ordinary non-public joint stock company by limiting the circulation of digital shares within the framework of a digital platform. Unlike the decentralized autonomous organization, it has legal entity and governing bodies. It was also concluded that there is a significantly greater variety of rights of holders of foreign token-shares in comparison with the rights of shareholders of Russian digital joint stock companies. The novelty of the research is contained in the results of the analysis and doctrinal interpretation of the norms of Russian federal laws concerning digital shares. So, in particular, it was established that such are recognized at the same time as securities and digital rights. Such a legal structure appears to be unnecessarily complex. According to Russian law, digital shares differ from ordinary shares in the form of certification of shareholders “rights, while no differences have been revealed in the scope of shareholders” rights.
The rapid development of the use of information and communication technologies, in particular smart contracts, necessitates legal regulation of the latter. The principle and mechanism of operation of smart contracts are of great legal interest, and although certain programmers the idea is expressed that a reasonable contract is software and is not a legal term, I do not agree with this possible, because a reasonable contract falls under the generally accepted definition of the contract, promotes monetary turnover and has real material consequences for the parties. The purpose of the smart contract is to transfer information and ensure that all participants fulfill the conditions set in the code. The potential of smart contract technology is capable of changing approaches to contract law no less than the advent of computers and the Internet has changed the way lawyers work. Taking into considerationthe diversity of scientific views on the legal nature of the smart contract, the lack of established scientific approaches, the considerable scientific interest of the topic requires its proper theoretical justification.
Despite the ubiquity of cryptocurrency, no international uniform regulatory system exists. State-by-state regulation of cryptocurrencies has problematic implications for cross-border investigations and predictability in application. Moreover, this regulatory framework leaves open opportunities for actors worldwide to violate international sanctions with impunity. This Note posits that an international regulatory framework is necessary to combat the evasion of financial sanctions on practical and theoretical grounds. It further argues that the best way to structure this new framework is through the enactment of a new multilateral treaty. A formal international regulatory mechanism for cryptocurrencies would have numerous benefits, foremost among them limiting the evasion of international sanctions. An international regulatory mechanism would also promote predictability in the regulation of cryptocurrencies. This would in turn entice institutional investors to build out the field of crypto users and encourage stability in an otherwise volatile marketplace. The proposal outlined within this Note goes beyond standard legal justifications for a multilateral mechanism. It drills down into the substantive mechanisms that an effective treaty must include, such as public key cryptography; an international public key directory; prosecution guidelines; and foreign fine credits. The levels of specificity to this end are perhaps uncommon in a typical legal proposal. However, this analysis is essential to explain why a new, multilateral treaty is required. The current structures in place cannot begin to grapple with the complex underlying issues which are so crucial to the regulation of cryptocurrency. The substantive components of the proposed treaty undergird the very reason why a new multilateral treaty is necessary.
Marina Kasatkina* Consumer Protection in the Light of Smart Contracts DOI: 10.54148/ELTELJ.2021.1.95 Abstract This article aims to evaluate how common forms and methods of protecting the rights and legitimate interests of consumers are applicable in the area of smart contracts. The author highlights the potential negative effects of smart contracts on consumer protection. In this […]
The article considers international experience of legal regulation of cryptocurrencies, provides legal analysis of the regulatory framework for the circulation of cryptocurrencies in the countries with developed economies, including the United Kingdom, Norway, the USA, and Japan. Legislative peculiarities of regulating the circulation of cryptocurrencies in the countries that have favorable conditions for the development of crypto business, in particular, Australia, Estonia and Switzerland, are determined. The example of these countries shows how the peculiarities of cryptocurrency regulation affect financial stability and security. The need to further improvement of the legal framework for the creation of an optimal platform for the cryptocurrency circulation, promotion of the development of crypto business as a new forward-looking area of economic development and at the same time protection of public financial systems, prevention of criminal money laundering is proved.
Irina Astrakhantseva, Roman Astrakhantsev, Alexey Los
The article focuses on the relevance of establishing legal norms for virtual currency, which is currently working in the gray zone. The article substantiates why cryptocurrency was referred to other property in the framework of civil law. The author suggests a definition of cryptocurrency to introduce it into legislation. Attributes of cryptocurrency theft are considered. The most attention is given to fraud, in particular different types of cryptocurrency phishing, and possible ways of criminal prosecution for cryptocurrency theft.
Abstract: The article is devoted to a new phenomenon for the Russian legal and economic space – the smart contract. The author of the article, based on the novel of Part 2 of Article 309 of the Civil Code of the Russian Federation, considers the dynamics of a civil obligation that is fulfilled through the use of information technologies. Thus, the article structurally highlights the parts devoted to the actual dynamics itself, the stage of occurrence of an obligation mediated by a smart contract; the stage of performance of such an obligation through the prism of the principles of performance; as well as the stage of termination of the obligation under study. The paper shows three main scientific approaches that reflect the mechanism of occurrence of an obligation that is fulfilled through the use of information technologies; the legal characteristics of click-wrap and browse-wrap agreements are given; the specifics of the known principles of performance of obligations in the performance of obligations using information technologies are reflected; it is concluded that it is necessary to adapt the law of obligations to digital realities, which is possible without a radical "breaking" of the pandect system of Russian civil law and the key approaches of the legislator to the main legal instruments of civil law.
Олександр Сергійович Омельчук, О. С. Омельчук, Александр Сергеевич Омельчук, Oleksandr Serhiyovych Omelchuk · 13 authors
The article analyzes the legal nature and specific of legal regulation of cryptocurrency in order to reveal the features of inheritance of cryptocurrency assets. The article aims to reveal whether it is possible to inherit cryptocurrency in terms of the existent legislation and if so, what kind of peculiarities of cryptocurrency should be considered. The financial and legal nature of cryptocurrency are described in the article. The main differences between cryptocurrency and traditional electronic money are revealed. The current legislation of Ukraine and some European countries on cryptocurrency legal status is analyzed. It is stated, that in most countries of the world, cryptocurrency is not considered to be money or currency, but rather a kind of property. It is noted, that while solving the issue of inclusion of cryptocurrency assets in the legacy, it is necessary to take into account the functional features of cryptocurrencies in general and the specifics of a particular type of cryptocurrency. Most of the benefits of cryptocurrencies for their owner (such as anonymous character) are obstacles to their inheritance according to the procedures provided by applicable law. The classification of the methods of inheritance of cryptocurrency assets is made in the article. The differences in the inheritance of cryptocurrency and tokens are revealed.
The article undertakes an analysis of the potential of using blockchain technology to strengthen the security of the state, which is guaranteed by a strong and efficient army. As part of his own studies, the author first characterizes the solutions that were first implemented in 2008 with the creation of Bitcoin. Blockchain technology, described as the most important achievement of humanity since the creation of the internet. It is increasingly used in areas such as payment management, digitization, and contract storage, or in the private sector, where data security plays a key role. Available reports and studies indicate that the United States, the Russian Federation, and the People's Republic of China are intensively working on the implementation of technology in the functioning of their armies. In turn, countries such as South Korea or India began pilot programs in 2019, which will eventually lead to the implementation of blockchain technology in their armies. Hence, the question arises, what military application blockchain technology has or may have in the foreseeable future, and how its use by armies can contribute to improving the security of the state? In the study presented, the following three areas of potential application have been distinguished: security in cyberspace, supply chain management, and more effective and reliable communication.
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European and Russian Geopolitical Military Strategies
На сегодняшний день создание и обращение негосударственных денежных знаков строго регламентируется на законодательном уровне в большинстве стран, и купить товар официально на данные средства достаточно проблематично. Одним из способов является возможность заказать товар через неофициальные каналы поставок. Появление подобных частных валют имеет свою историю. Появление Интернета неразрывно связано с возможностью беспрепятственного обращения материальных ценностей и реализации идей между людьми и различными субъектами. Этому способствовало появление криптовалют как виртуальных денежных единиц. Криптовалюта является финансовой негосударственной банкнотой, используемой в обращении индивидуальными субъектами. Смыслом существования таких денежных единиц является обеспечение преимущества перед государственной валютой. На всем протяжении существования нашей цивилизации имело место возникновение иных денежных форм. В середине 19 века в США и других развитых капиталистических странах появлялись массы денежных знаков, отличных от официальных государственных денег. Их выпускали не только крупные компании вроде банков, муниципалитетов и магазинов, но и частные лица. Ценность современных активов определяется их рыночной стоимостью, регулируемой продавцом и покупателем. Во многих странах криптовалюта сегодня является цифровым товаром. Однако важным вопросом на этапе создания криптовалюты является ее базовая стоимость. Для продуктивного использования криптовалют создаются блокчейн-технологии для их интеграции в проекты, решающие проблемы современного общества - это важный фактор успешного развития криптоэкономики. Nowadays the creation and circulation of non-state banknotes is strictly regulated at the legislative level in most countries and it is quite problematic to buy goods officially with these funds, one of the ways is to order goods through unofficial supply channels. The emergence of such private currencies has a history. The emergence of the Internet is inextricably linked with the possibility of the unhindered circulation of material assets and the implementation of ideas between people and various subjects. This was facilitated by the emergence of cryptocurrencies as virtual monetary units. Cryptocurrency is a financial non-government banknote used in circulation by individual entities. The raison d’être of such monetary units is to provide an advantage over the state currency. Throughout the existence of our civilization, other forms of money have emerged. In the middle of the 19th century, masses of banknotes, different from official state money, appeared in the United States and other developed capitalist countries. They were produced not only by large companies like banks, municipalities and shops, but also by individuals. The value of modern assets is determined by their market value, regulated by the seller and the buyer. In many countries, cryptocurrency is a digital commodity today. However, an important issue at the stage of cryptocurrency creation is its base value. For the productive use of cryptocurrencies, blockchain technologies are being created for their integration into projects that solve the problems of modern society - this is an important factor in the successful development of cryptoeconomics.
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Security, Politics, and Digital Transformation
Digitalization and Economic Development in Agriculture