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 issues of referring cryptocurrency to such objects of civil rights as monetary funds, currency values, securities, intellectual property, intangible assets, etc. are considered in detail. Based on a comprehensive analysis, the classification of cryptocurrency as a different property within the framework of civil law is substantiated. The author's definition of cryptocurrency is given as a cryptographically protected property with signs of cryptographic authentication, decentralization, management through consensus, and the use of distributed ledgers. The economic essence and legal status of the cryptocurrency proposed by the authors emphasize the exclusively digital version of the existence and use of this object, indicates the possibility of the turnover of this asset, delimits the concept of cryptocurrency, non-cash and electronic money. The definition of a crypto asset as property makes it possible to develop tax legislation, since the implementation of cryptocurrency is close to investment instruments, which makes it possible to clarify the issue of paying such a tax as VAT. Cryptocurrency as property describes not the thing itself, but the legal relations associated with it, that is, those rights that, according to the rules of law, can be exercised. The article also raises one of the main issues that must be resolved - this is the recognition of ownership of this specific type of property. According to the authors, the starting point for determining the ownership of the cryptocurrency should be that the subject of the right will be the owner of this asset if he legally gained access to the private key by analogy as the subject acquired the ownership of a tangible asset on a legal basis.
Blockchain technology currently occupies one of the central places in the economy and business; it has the potential to create new foundations for existing economic systems. For this reason there is a huge interest in studying the use of distributed ledger technology in the legal literature. However, at the same time it is necessary to note that this topic is understudied, which is due to this phenomenon's novelty. The relevance of the research topic is determined by the need to analyze in a holistic way the definitions of the concept of distributed ledger technology (blockchain), features of using the blockchain technology. The need for such research is due to the absence of a comprehensive legal regulation for the use of distributed ledger technology in the securities market. In this article the concept of blockchain technology is considered, features of its use are highlighted. It is concluded that blockchain technology can be selected for the use in the securities market, including when placing securities, conducting transactions with securities and carrying out accounting activities in the securities market, in organizing trading of financial assets and services.
Стремительное развитие технологии блокчейн сделало криптовалюты широко распространенными по всему миру платежными средствами, используемыми в качестве альтернативной онлайн-валюты. Одновременно с этим криптовалюты также зарекомендовали себя как идеальная валюта для киберпреступников из-за их нерегулируемого и псевдоанонимного характера. Такое положение дел привело к возникновению возможности использования криптовалют в качестве инструмента содействия преступлениям, совершаемым как в киберпространстве, так и в реальном мире, включая легализацию (отмывание) денежных средств, кибер-вымогательство, фишинг, взлом, кибермошенничество и иные преступления в финансовой сфере. Учитывая высокотехнологичный, децентрализованный и, следовательно, сложный характер криптовалют, криминологам важно иметь базовое представление о методах работы, используемых в криптовалютных преступлениях. Таким образом, в представленных тезисах проанализированы проблемы, связанные с использованием криптовалюты для содействия преступной деятельности, и рассмотрены методы противодействия им. The rapid development of blockchain technology has made cryptocurrencies widespread around the world, used as an alternative online currency. At the same time, cryptocurrencies have also established themselves as the ideal currency for cybercriminals due to their unregulated and pseudo-anonymous nature. This state of affairs has led to the emergence of the possibility of using cryptocurrencies as a tool to facilitate crimes committed both in cyberspace and in the real world, including money laundering, cyber extortion, phishing, hacking, cyber fraud and other crimes in the financial sector. Given the high-tech, decentralized and therefore complex nature of cryptocurrencies, it is important for criminologists to have a basic understanding of the methods of operation used in "cryptocurrency crimes." Thus, this article analyzes the issues of using cryptocurrency to promote criminal activity, as well as countering issues.
Поднимая вопрос о месте смарт-контракта в экономико-правовой сфере, также нельзя не упомянуть об основных экономико-правовых положения и то как они адаптируются применительно к смарт-контрактам в предпринимательстве и какими особенностями обладают. Характерными принципами, применяемые к смарт-контрактам в предпринимательстве, относятся: судебная защита, добросовестность, защита слабой стороны, свобода договора. смарт-контракт хоть и предполагает защиту интересов слабой стороны, но это прежде всего компьютерная программа, подчиняющаяся определенной логике и цель, которой является определенность и эффективность выполнения запрограммированных условий контракта. И совсем избежать участие посредников, таких как суд (в случае возникновения и необходимости разрешения споров) при использовании смартконтрактов не получится, каким бы иным образом это не описывалось в работах других правоведов. Смарт-контракт не предполагает защиту слабой стороны отношений, поскольку его основная цель это автономность и самоисполнимость условий договора. Raising the question of the place of a smart contract in the economic and legal sphere, one cannot fail to mention the main economic and legal provisions and how they are adapted in relation to smart contracts in entrepreneurship and what features they have. Typical principles applied to smart contracts in entrepreneurship include: judicial protection, good faith, protection of the weak side, freedom of contract. A smart contract, although it presupposes the protection of the interests of a weak party, is primarily a computer program that obeys a certain logic and a goal, which is the certainty and efficiency of fulfilling the programmed contract conditions. And completely avoiding the participation of intermediaries, such as a court (in case of arising and the need to resolve disputes) when using smart contracts, will not work, no matter how otherwise it is described in the works of other legal scholars. A smart contract does not imply the protection of the weak side of the relationship, since its main purpose is the autonomy and self-enforcement of the terms of the contract.
The purpose of the research is to use blockchain technology in the electoral process. The study was conducted on the example of blockchain technologies used in elections in the United States, Canada, Australia, Sierra Leone, Switzerland, Spain, Russia and other countries. The methodological basis of the research is based on the methods of comparative analysis and component analysis of definitions. Empirical methods of expert assessment and interviewing were used. The pros and cons of blockchain technologies and the possibility of using this innovative technology in elections of different levels are revealed. The advantages of inclusive blockchain technology include the mobility and accessibility of voting; minimizing the costs of organizing and conducting elections; de-bureaucratization by reducing the staff of election commissions; the possibility of excluding the impact on voters from participants in the electoral process; reducing the time for processing ballots and determining the results of voting; increasing the level of trust in electoral procedures on the part of citizens who usually do not participate in voting. Among the disadvantages of blockchain technologies, we can highlight: technical failures and hacker cyber-attacks; the possibility of hackers using data about voters, in case of hacking electronic databases; violation of the secrecy of voting.
The article discusses the basis of forensic techniques to identify crimes committed using cryptocurrency and subsequent investigation of such criminal cases. Based on the analysis of the functional principles of cryptocurrencies, the author proposes the basis of the appropriate forensic methodology based on the study of the functional principles of cryptocurrencies and the system of the laws that have developed in the process of their use.
Significant changes in the world connected with the introduction of digital technologies, which have led to the development of the economy with new financial instruments, raised the issue of thesubject under consideration. The author analyses the new forms of economic development that allow to expand the range of criminal law effect on persons committing economic crimes in the field of crediting. The mechanism for restoring violated rights, which are considered possible within the framework of the current legislation, is strategically important. The legislative initiatives related to proposals of cryptocurrency legalising have increased in recent years, being a current trend of the existing society development. At the state level, a search for the new ways to maintain business activity and to prevent illegal acts committed in this sphere is being made. Due to the fact that a lot of norms of criminal legislation intended to protect objects of economic activity are of a blanket nature, clarifying the meaning of their features is impossible without referring to civil legislation. Civil regulation is the basis of the economic sector. A new conceptual system is pointed out; it improves the possibility of cryptocurrency turnover, but does not fully regulate it. By analysing the current legislation, the author tries to assess the value of cryptocurrency, digital rights and other property in order to determine the maliciousness of evading accounts payable. Subsequently, the author gives his opinion on the prospect of providing the officers of the enforcement agencies of the Russian Federation with the opportunity to expand the interpretation of the norms of criminal legislation including liability for maliciousness of evading accounts payable (Article 177 of the Criminal Code of the Russian Federation).
The paper analyzes the legal status of the consumer when concluding and executing a smart contract. The author proves the existence of special risks for citizens associated with the conclusion and execution of a smart contract. In particular, the author considers the risk of a consumer’s misunderstanding of the terms of a smart contract, the risk of a difference between the terms of a smart contract and the terms of a contract set forth in the natural language, the risk of including in a smart contract conditions that infringe on consumer rights (unfair contractual terms), as well as special manifestations of regulatory and operational risks in relation to a smart contract. Currently, in the Russian Federation, as in most foreign jurisdictions, there are no special legal mechanisms aimed at protecting consumer rights from these risks. The “general” mechanisms of consumer protection existing in the Russian jurisdiction are insufficient. Considering this, the author proposes mechanisms for each risk aimed at minimizing its implementation and negative impact on the citizen. The following risk-oriented approach to regulating relations when concluding a smart contract with the participation of a consumer is proposed. A citizen can conclude transactions using a smart contract subject to legislative limitation of his potential losses under a transaction (limiting the transaction price) and the introduction of the proposed legal regulation aimed at minimizing the risks discussed in the paper.
The purpose of this article is to analyze methods, approaches, and tools of distributed ledger technology (DLT) for working with documents in education. The objectives of the article are to analyze problems with the authentication of educational documents, develop new structural solutions using block chain technology, consider two models, and evaluate their use for educational documents. Authentication of educational documents is carried out using state registers, which is a complex and resource-intensive process. There is an increase in the number of forged documents in the world, which calls into question the effectiveness of modern mechanisms. Distributed ledger technology (block chain) is a sustainable technological trend that affects the development and quality of the digital economy. The existence of a mechanism for verifying the authenticity of educational documents that is resistant to malicious manipulation is an urgent task that goes beyond the sphere of education, possible solutions to which are proposed to be considered in this paper. The article provides a brief description of DLT and considers the approach of using the technology to authenticate educational documents. It consists of two main stages: the issue of a digital educational document and its verification. The role of a trusted third party in the issue and validation process is considered. The paper presents the models for issuing and validating digital documents based on distributed ledger technology, which allows one to eliminate the limitations and shortcomings of existing approaches. The effectiveness of the approach based on the proposed models is revealed. The formulated approaches can be applied in various socio-economic areas and public administration to work with similar documents.
The blockchain technology using by State authorities does not simply mean the technical modernization of their activities. The role of the State as a whole can change if it offers active services in the digital platforms organization. The participation of the authorities will increase confidence in the quality of data entered into the system, “balance” private participants of the blockchain. At the same time, interaction within the framework of the blockchain, both between the authorities themselves and with private actors, entails legal problems that are currently unresolved. This is demonstrated in the article on the example of State registration of real estate, the process of which involves many actors with different goals and degrees of participation. It is necessary to work out the system of legal significance of documents generated as a result of registration on the basis of the blockchain. The competences of the authorities as participants in the distributed ledger technologies system should be formulated in general in those acts that determine their competence, otherwise they will be illegitimate. Interaction of Public administration entities within the framework of the blockchain requires careful study in the normative plan of the regime of access to information contained in the registry.
The article explores the dialectic of determining the legal status of cryptocurrencies. Digital technologies are considered specifically for their application in the financial sector. The features of the use of digital technologies in various countries of the world are analyzed. Due to the variability of the legal regulation of digital technologies, the complex nature of their implementation is noted, which is not reduced to a simultaneous behavioral act. It is concluded that there is no universal way to sell cryptocurrencies in the financial market. The analysis of existing scientific approaches to understanding the concept of cryptocurrency, bitcoin is carried out. The article examines the digital technologies used in the financial sector, which include virtual currencies and — like their kind of cryptocurrency. The cryptocurrency status is not defined, however, there is the prospect of normative fixing it on the territory of the Russian Federation.
This article is devoted to the consideration of issues related to the legal regulation of cryptocurrencies in the Russian Federation and some foreign countries. In the course of the study, the features of cryptocurrencies were highlighted, various approaches to the definition of this category were considered, some aspects of the legal regulation of digital currencies were analyzed. It has been determined that the rules of financial law regulate a whole range of public relations related to the use of cryptocurrencies and the complex regulation of this institution is necessary. The author came to the conclusion that it is necessary to use digital technologies and digital currencies in the Russian economy in the future. At the same time, this is a complex and not an instantaneous process of transition to digital currencies; a clearly thought-out strategy for the development of legislation in this area is necessary.
The articles focuses on opportunities and problems connected with implementation of smart contracts into “over-the-counter” derivatives trading. The importance of success of professionals who work on this cannot be underestimated: the volume of “over-the-counter” derivatives market is huge, its automatization and transparency provided by implemented smart contracts could dramatically increase its economic efficiency. In this study, the author aims at answering the following question: what aspects of “over-the-counter” derivatives trading could take a quantum leap because of the implementation of smart contacts and, per contra, what aspects could not benefit from implementation of underlying technologies at all. The author starts with the overview of “over-the-counter” derivatives market, investigates the matter of its internal design, main features and the structure of legal documentation used by market participants. Then the article provides the analysis of smart contract phenomenon, summary of its engineering aspects and difficulties connected with the implementation of smart contracts as a practical matter, including underlying legal issues. The third part is a synthesis of ideas indicated in previous parts. Herein the author examines the perspectives of adoption of smart contracts in “over-the-counter” derivatives trading, identifies the problems that cannot be resolved yet: different parts of legal relations existing between market participants shall be structured in a flexible way and shall be subject to revision under specific conditions. Smart contracts in their turn cannot be considered as a flexible tool and the revision of their terms requires the input from highly experienced specialists that dramatically increases the costs of their implementation and maintenance. As a matter of conclusion, the author gives recommendation to potential developers of smart contacts to implement them only in relation to the automatization of payments and deliveries as at the moment the clearing can be considered as the most appropriate area for the implementation and use of smart contracts.
Elena Kirillova, Богдан Варвара Владимировна, Petr Filippov, Valentin Tkachev · 5 authors
This article discusses the main features of the classifications of blockchain technologies. Ten years after the first blockchain appeared, this technology is still largely experimental. It is difficult to predict the future of the blockchain industry and the technology itself with confidence, but its certain outlines are already emerging. The purpose of the study is to consider the classification of blockchain technologies and analyze the problems that arise when using these technologies. When writing the article, the authors used methods of collecting and studying individual facts, generalization, scientific abstraction, cognition of laws, as well as the methods of objectivity, concreteness, and pluralism. It has been proved that the legal regulation of blockchain technologies should be carried out through the development of uniform world standards and that prohibitions and restrictions on certain types of activities should be systematized and regulated at the international level. The study has concluded that three types of blockchain are used: public blockchains with open access (public blockchains), private blockchains with open access (consortium blockchains), and private blockchains with closed access (fully private blockchains). Following this typology, the authors have highlighted the main features of each blockchain category.
Coordination and facilitation of multiple and diverse AKIS stakeholders is vital for increased efficiency and better agriculture performance. The decision to decentralize the administration and management of AKIS to local structures needs to be realistic. Public financing in AKIS for enhanced capacities of the sub-systems ensures inclusive service delivery and increased agriculture productivity. Participation of all groups of clients in AKIS decision-makings and implementation, through participatory tools, ensures responsive and relevant goods, services, and policy. Continuous professional development of AKIS stakeholders’ personnel is key to responding to evolving mandates and complex challenges, including food security during the Covid-19 crisis
This article is aimed at studying of theoretical issues of implementing network contracts (smart contracts) on the example of Russia and foreign countries, based on the fact that its knowledge allowed and allows to successfully solve current problems of legal regulation in our country. The starting point of the research is network communication as a non-market type of communication. The article analyzes the provisions of approaches to the legal regulation of network contracts (smart contracts) developed in the new technological reality, taking into account the experience of foreign countries and the Russian Federation that determine the acceptability of the use of blockchain in the field of legal regulation of such a type of interaction between the parties to the contract that is updated according to present technological era. The relevance, theoretical and practical significance of this research is due to the emergence of new tools for interaction between the parties to the contract in the context of using blockchain technology. The author's results, among other things, are presented in the idea that the ability to compile codes by software tools that ensure the fulfillment of obligations under contracts (smart contracts) that are used in the blockchain network not only expands the latter's utilities from simple information storage to participation in the system of economic transactions, but also is an excellent tool for automatic fulfillment of the obligations stated in them.
Article New Zealand: Are Cryptocurrencies Property? — An analysis of eligible entities for property in the light of the first landmark ruling on cryptocurrency was published on October 1, 2020 in the journal Computer Law Review International (volume 21, issue 5).
This chapter examines the potential impact of ever-increasing digitisation upon the regulation of financial products. It outlines a methodology for assessing the implications of digital developments for existing regulatory regimes and for developing the right level of reform to those in order to ensure that new digital financial products do not operate beyond the ambit of the regulatory environment. The chapter considers two instances: the first is the regulation of cryptocurrencies and distributed ledger technology; the second is the use of digital processes and algorithms for trading in securities and making business decisions, including lending decisions, which raises broader issues of the future use of artificial intelligence. Financial regulation consists of legislative, regulatory and soft-law rules and principles that apply to financial firms and their senior management. A 2011 Treasury report highlighted that: ‘macro-prudential policy seeks to augment the existing regulatory framework by focusing on systemic risk.
Objective: to consider the evolution of types and forms of money, to classify the varieties of cryptocurrency and its functions, to explain the mechanisms for issuing and circulation of cryptocurrencies, as well as to identify problems in the field of legal regulation of digital virtual currencies in the Russian Federation.Methods: the work used a dialectical combination of the principles of a systematic approach and various ontological knowledge through a range of methods of historical, empirical, comparative, logical, statistical and predictive cognition.Results: it is shown that the modern global monetary system is evolving towards decentralization; it is based on cryptocurrencies issued as part of a functional combination of public and private blockchains; cryptocurrencies require full legalization, not prohibition at the legislative level; cryptocurrencies are types of digital virtual assets accounted for on accounts (crypto wallets) identified within.Scientific novelty: for the first time, the article shows that it is erroneous to consider cryptocurrency to be just a property and to limit its operations just to cross obligations for transferred goods and rendered works (services). Cryptocurrencies are decentralized virtual money based on mathematical algorithms using open-source asymmetric cryptography techniques and consensus-based platforms. Users need both external (cryptocurrency) and internal (tokens) currencies to increase the efficiency of using traditional assets (property, goods and services) in the economy.Practical significance: the main provisions and conclusions of the article can be used to develop a glossary, terms and definitions of cryptocurrency, mechanisms for regulating its issue and circulation in Russia, as well as making amendments to the draft law “On digital currency and amendments to certain legislative acts of the Russian Federation” that are adequate to the economic nature of cryptocurrency.
The article analyzes the possibility of including one of the types of digital rights of cryptocurrency as a potential object of bankruptcy estate. It is concluded that it is possible to include cryptocurrency, which is stored in a cryptocurrency wallet in the electronic system into the bankruptcy estate up to its real value with which creditors’ claims can be satisfied. The problems arising in connection with the inclusion of cryptocurrency in the bankruptcy estate of the insolvent debtor associated with the anonymity of its ownership and the specifics of the foreclosure have been identified. The anonymity of the existence of cryptocurrency in the electronic system does not allow the inclusion of property in the bankruptcy estate without the assistance of the debtor. It is recognized that cryptocurrency cannot be traded via electronic auctions in bankruptcy proceedings due to its existence in the framework of a special information system and short time price volatility. A distinction between cryptocurrency and electronic money has been made.
This article analyzes the concept and essential properties of blockchain: decentralization, usage of cryptography, autonomy, presence of consensus mechanisms, anonymity and transparency of the chain of blocks. Alongside the advantages, the article describes the disadvantages of blockchain: high cost of development and implementation of blockchain-based solutions and their utilization (high energy requirements); low speed of data processing; potential unauthorized changes to the database; absence of confidentiality of blockchain users. The author considers the scientific views on the need for legal regulation of the blockchain. An overview is presented on the global achievements in the area of blockchain standardization, as well as key vectors of standardization: terminology, reference architecture, security and confidentiality, management, smart contracts. An original definition of blockchain that takes into account its essential properties is provided. Two spheres of regulation are distinguished: legal regulation of relations that apply blockchain, and regulation of the blockchain technology itself (terminology, ontology, taxonomy, reference architecture, management, etc.). The conclusion is made on invalidity of the proposals on the unified legal regulation of blockchain (for example, formation of the universal law on blockchain), implying different areas of implementation of this technology. The author justifies the need for standardization of blockchain, as well as describes the key advantages of such standardization. It is underlined that the standards would not substitute the specific legal regulation, but would ensure the conditions for creating the legal framework in accordance with the requirements of technological reality.