Reilly White, Yorgos Marinakis, Nazrul Islam, Steven T. Walsh
Cryptocurrencies such as Bitcoin have fascinated technologists and investors alike. They have become prevalent, with over 2,000 Bitcoin-like cryptocurrencies now in use. Most jurisdictions have not regulated cryptocurrencies. Whether existing regulations apply to cryptocurrency turns ultimately on if we classify cryptocurrencies as currencies, securities, or derivatives, or a money services (transfer) vehicle. In this set of exploratory analyses we seek to classify Bitcoin. We utilize a variety of methods to compare aspects of its behavior to: currencies, asset classes such as derivatives, technology-based products and possible technology-based products such as Ether and the security SPY, and speculative financial bubbles. We find that Bitcoin's behavior more closely resembles a technology-based product, an emerging asset class, or a bubble event, rather than a currency or a security; such that it is correct that existing currency and security laws should not apply to cryptocurrencies.
The article is devoted to the problems of qualification of various types of theft of cryptocurrency, theft of funds committed using cryptocurrency. The article deals with crimes related to the illegal sale of drugs for cryptocurrency and raises the question of the absence in the act of the offense under article 1741 of the Criminal code of the Russian Federation. The author studies the concepts of cryptocurrency and property within the framework of existing scientific opinions and analyzes the versatile judicial practice, which, in particular, tends to classify cryptocurrencies as types of property. The goals and objectives of the study are to determine the range of features and properties of the objects of crimes committed with the use of cryptocurrency, as well as committed against the cryptocurrency as an object of infringement. In the preparation of the article, mainly formal logical methods were used, as a result of which the author analyzes social and legal phenomena. The author concludes that the main feature of the evaluation of the object of crimes in sphere of circulation of cryptocurrency, is the presence of his property and cost characteristics, the possibility of determining the damage for the proper qualification of the offense. It is concluded that cryptocurrency may be the subject of corruption offenses on the basis of scientifically substantiated opinions about the presence of the paid nature of the benefit provided by the cryptocurrency. It is argued that the actions associated with the sale of narcotic drugs and psychotropic substances for cryptocurrency and subsequent actions to transfer cryptocurrency to Fiat money do not form part of the crime providing for liability for the legalization of proceeds from crime.
The use of citizens` and legal entities` personal information is crucial for the protection of human rights at the current stage of society and information technology development. On the one hand, a high-quality system of processing and using this information can increase the level of citizen participation in government-making processes and assist on creating a human-centric approach in public administration, when the state will have all the necessary information to serve citizens (providing of all administrative services online, use of analytics to improve infrastructure, etc.). On the other hand, misuse and unauthorized access to personal data can lead to violations of citizens' rights, corruption and excessive bureaucracy in administrative procedures.At the same time, approaches to the protection of personal data should be not formal, but purely practical. The state policy should be based on the solution of real problems, which often require a complete revision of the systematic approaches, in this case the infrastructure of the state registers.Modern information technologies make it possible to implement large-scale changes in the business processes of collecting, storing and processing personal data of citizens. Moreover, such approaches make it possible to reduce bureaucratic burdens and minimize corruption risks.Distributed registry technology is a popular solution for improving the performance of government processes and enhancing eGovernment in the country. However, its application requires a proper assessment of the problem and its origins, as well as the outcomes that should be achieved
Elena B. Zavyalova, Ekaterina I. Shumskaia, Alexandra I. Shumskaia
Introduction. Smart contracts have become demanded agreements in the modern market with the development of crypto-currency due to their ability to provide and guarantee enforcement. To date they are performed automatically using blockchain technology. Smart contracts are the subject of debate in many countries, primarily because issues have arisen in their legal enactment in the field of regulation of digital assets and the legal recognition of blockchain technology itself, which determined the purpose of this scientific research. For the purpose of a deeper understanding of the essence of this type of agreements, a historical method has been applied in the work on the features of the formation of smart contracts. To identify key differences, a formal legal and comparative analysis of smart contracts with classical contracts in electronic form was carried out. The areas of application of smart contracts in the world and in Russia, such as banking, healthcare, insurance and public services, were also studied. Materials and methods. The methodological basis of the study was made up of the following general scientific and special methods of cognition of legal phenomena and processes, including systemic, historical, formal legal, comparative and analytical approaches. Results. An assessment is made of such contracts from the point of view of the existing civil law of the Russian Federation and further directions for study and development are proposed, including the improvement of the regulatory and institutional environment to maintain legal certainty. Discussion and conclusion. The existing legal regulation does not prohibit the use of smart contracts in the business practices of companies and individuals. But the simplicity of the transaction implementation algorithm built on the blockchain still requires some legal support.
The topicality of the topic is connected with the growing role of culture in the state administration of Russia. According to the forecast of the long-term socio-economic development of the Russian Federation until 2030, culture is a priority area of state support to ensure the maximum possible access of citizens to cultural values and education in the sphere culture, as well as the preservation of works of culture and art. Museums, as objects of storage and demonstration of cultural values, are an integral part of cultural policy. The state policy in the museum area consists of financial support, provision of professional staff, improvement of the legal and regulatory framework, coordination of the activities of federal and regional authorities in relation to museums. Museums are a complex and specific area of public policy and governance, as each institution has different values in importance, different possibilities of self-financing. Therefore, it is impossible to apply the same criteria to all state museums that determine its effectiveness. The article examines the main models of state cultural and museum policy in the field of protection, disposal and use of cultural monuments, reveals the specifics of the legislative framework and organizational and economic support. The conclusions are drawn that the combination of centralized and decentralized management of the museum sphere, the elimination of the contradictions of the legal and legal framework in the museum and cultural sphere, the creation of a mutually beneficial mechanism of public-private partnerships will provide the most effective model of cultural and museum policy for the protection of cultural monuments.
Prosecutor's Office of Moscow Region, Madina M. Dolgieva
ПРОТИВОДЕЙСТВИЕ ЛЕГАЛИЗАЦИИ ПРЕСТУПНЫХ ДОХОДОВ ПРИ ИСПОЛЬЗОВАНИИ КРИПТОВАЛЮТЫРассматриваются рекомендации Группы по разработке финансовых мер борьбы с отмыванием денег и финансированием терроризма, которая с 2018 г. приступила к разработке обязательных правил регулирования криптовалютных бирж и обменников.На основе исследованных рекомендаций обосновывается вывод о необходимости включения в уголовный закон нормы об ответственности за неправомерный оборот криптовалюты, вследствие чего нормы
Introduction: the paper is devoted to a new phenomenon in business activity in the conditions of IT development that contribute to the creation of secure contractual relations on the Internet on the basis of transactions executed through smart contracts. The author notes that the need for amendments that could fill the loopholes in the current legislation is obvious. And, first of all, it concerns Blockchain technology – the algorithm that mediates the safe development, conclusion and execution of smart contracts. Blockchain technology is considered in the paper as one of the safest means for concluding and executing smart contracts. The author argues that the study of the concept, legal nature and essence of smart contracts is relevant in the light of spreading their share in the total array of transactions in the world economy in conjunction with the changing domestic legislation governing the relevant sphere, as well as the international integration processes affecting the intensification of foreign economic activity of the Russian Federation. The smart contract concepts formulated by the Russian legislator in the process of upgrading the array of statutory regulation under conditions of economy digitalization are studied and compared. The features of conclusion and protection of the smart contract in the civil legislation of the Russian Federation are analyzed. In order to fully articulate the concept of the smart contract, reflecting its essence, functional purpose and legal nature, it is proposed to create a special law that would focus on the conclusion and implementation of “the smart contract” and the specification of the general norms of the civil code. At the same time, the norms of other special laws would supplement and correct the provisions fixed by this act depending on the sphere of managing and the legal regulation branch. The concept of the smart contract is formulated; its value for economic and contractual activity, and also the advantages and disadvantages of its application are established. The possible classifications of smart contracts are given.
Blockchain technology enables sharing information between individual computers. The potential of blockchain application is not only in e-currency, but also in secure data sharing and identity management. Ethereum is a representative example of a blockchain-based platform. Created by Vitalik Buterin, Ethereum is an open software constructed based on smart contracts. A contract is one kind of account in Ethereum. The contract can not only read codes and currency in a transaction, but also create another contract for reading code and writing into storage. In this book chapter, we perform an in depth survey of some recent examples and applications of blockchain and smart contracts.
Elena Kirillova, Богдан Варвара Владимировна, Igor B. Lagutin, Evgeniy Dmitrievich Gorevoy
This article using critical analysis discusses the legal status of smart contracts, their features and characteristics, and the possibility of introducing this category into the legal field. The main goal of the study is to determine the legal status of smart contracts. The study concludes that a smart contract is a program code based on blockchain technology, which, by legal characteristics, is a legally significant message recorded in a language (artificial language) and sealed with an electronic digital signature of each of the parties (or certified with a special key). It is proved that the multilateral interactions implemented through smart contracts can reduce the costs of operations and control them, increase the speed of operations and reduce the risks associated with dishonest actions of the parties, minimize or completely exclude intermediaries from the transaction; therefore, legislation should provide for the possibility of using smart contracts along with existing contracts.
In only one decade, cryptocurrencies have witnessed significant growth, with Bitcoin being the most dominant one. They are not efficient payment methods, although they bring some benefits linked to the underlying technology they use (Blockchain). In reality, they function more as investment assets than as payment instruments and pose various risks, which are very similar to those encountered on capital markets (price volatility, fraud, market manipulation). In order to deal with these risks, regulation should apply to intermediaries who provide services in relation to cryptocurrencies, such as crypto wallets, operation of crypto exchanges and brokerage. To this end, the European legislator should consider two options. It could, on the one hand, bring cryptocurrency service providers within the scope of the existing financial services regime and thus modify MIFID II in order to include cryptocurrencies in the list of financial instruments. The European legislator could also, on the other hand, aim at creating a new appropriate and proportionate regime that draws on the existing one. Insofar as the existing regulatory framework was not designed with cryptocurrencies in mind and as some of the current rules may not be tailored to the specificities of these assets, the second option is preferable.
The article investigates by etymological and legal analysis the origin of the institution of obligations and risk management, for centuries in the process of formation of Russian law.
Yulia A. Polyakova, Olga A. Vorobyova, Elena M. Chertakova, Nina V. Olinder · 5 authors
The paper provides insight in to the concept of cryptocurrency as considered by national and foreign authors, the principles of its functioning and the need to establish its legal status. Formulated is the definition of cryptocurrency, and the thesis that cryptocurrency can be classified as other property is grounded. The need for an legislative definition of cryptocurrency attributes to the growth of transactions, cryptocurrencies trading at official marketplaces, and a change in the Russian government’sattitude towards cryptocurrencies from its banning to acceptance. One of the threats to the cryptocurrency turnover in financial markets was its imaginary anonymity –it has been generally accepted that cryptocurrency transactions are completely anonymous. However, all transactions are recorded on a public blockchain, and the key problem is to identify the account holder. Thus, it is not the account holder's identity that is anonymous, but rather an actual transaction. In our opinion, this problem can be solved by applying a series of computer-aided tests.
The article is devoted to the analysis of the cryptocurrency market functioning and the existing problems of its development. Today, the world needs electronic transactions and the elimination of the state monopoly on the issuance of funds. The cryptocurrency market is the evolution that can change the current situation. The factors affecting the demand for cryptocurrencies were determined in this article. One of the most important is the desire of investors to receive a one-time income on the difference in purchase and sale prices, not showing interest in long-term investment in new technologies. Also, regulatory and legal features of cryptocurrency regulation in the international space are revealed. Thus, in some developed countries, cryptocurrencies are recognized as a legal, regulated means of payment, which is allowed to be used when paying for goods and services. The article identifies barriers to market development, including a ban on turnover in some countries and the lack of elaboration of the legal aspect. In conclusion, the opportunities and prospects for the development of cryptocurrency as a means of exchange are revealed. It is noted that more and more countries are beginning to actively understand the issue of the cryptocurrency market and make at least some regulatory framework for their regulation, but at the moment the main financial regulator of the Russian Federation continues to adhere to a negative point of view in terms of cryptocurrencies.
Ovim diplomskim radom želi se u jednoj cjelini obuhvatiti sažeto objašnjenje što su kriptovalute te na koji način one funkcioniraju. Iako su kriptovalute u današnjici popularan pojam, malotko zapravo zna što su one zapravo. Trenutno postoji tendencija u poslovnom svijetu ka tome da se kriptovalute uvrste kao platežno sredstvo. Problem je što sve države nemaju isti stav prema kriptovalutama pa je i njihov tretman različit, a kamoli sam pojam kriptovaluta. U jednoj državi su dozvoljene i oporezive te je reguliran sustav u kojemu se plaća kriptovalutama, dok su u drugoj državi u potpunosti zabranjene. Isto tako, problem se javlja kada je u pitanju zloupotreba kriptovaluta za izbjegavanje poreza, mogućnost pranja novca i druge mogućnosti koje one omogućavaju. No, bez obzira na rizike koje trenutno predstavljaju, činjenice idu u prilog kriptovalutama pa tako vidimo da se u samo desetak godina od razvoja prve kriptovalute, danas na svjetskom tržištu nalazi preko dvije tisuće raznih kriptovaluta što prikazuje da se one razvijaju kao platežno sredstvo i usavršavaju na poljima koja im trenutno i nisu najpouzdanija i sigurna. Obzirom da ih se toliko puno nalazi na tržištu, u ovome radu istaknute su samo neke kriptovalute koje istovremeno međusobno imaju sličnosti, ali i određene razlike koje će ovaj rad obuhvatiti.
Within the framework of this article, the authors carry out the study of the design of the smart contract in the context of jurisprudence and technical sciences. The paper analyzes the legal nature of the smart contract and the issues concerning the scope of application (in relation to distributed ledger technology). The authors conclude that the category of “smart contract” can be defined in technical and legal aspects. In foreign literature, there are two categories: a legal smart contract and a smart contract code (or smart contract). The smart contract as a technical phenomenon represents a computer code that allows automated fulfillment of obligations. From legal point of view, the approaches to the definition of the smart contract depend primarily on the fact that the authors rely on the possibility of using smart contracts only within the framework of distributed ledger technology or other information technologies. At the same time, the majority of authors share the view that the smart contract exists exclusively in relation to the technology of distributed ledgers, namely, the blockchain. The article proposes to define the smart contract as a standard (special) contractual design — a contract concluded by electronic or other technical means, under the terms of which performance of the obligation is carried out without directed explicit additional expression of will (under Part 2 of Article 309 of the Civil Code of the Russian Federation). The article states that the smart contract cannot be qualified as an independent way of ensuring the performance of obligations. Such qualification is possible only if the functional approach to understanding security is applied. The paper examines the main fields of application of smart contracts and possible risks of their application (in terms of statement of terms of agreements in relation to a programming language; in respect of necessity of compliance with such fundamental principles of civil law as legality, fairness, protection of the weak; the need for communication with public authorities and notaries, as well as risks of using smart contracts in relations involving the participation of consumers). A separate set of questions concerns the protection of the rights infringed due to the use of smart contracts.
While Ethereum run in public networks which make the blockchain size large and transaction run time longer than time for private or national network, that led to continuous worries over the expanding size of Ethereum Blockchain, which certainly reduce Cryptocurrency's effectiveness. The estimations were on increase and believed it would cross the node limit of 1 TB terribly shortly. If new consumer a full node enters to that blockchain and cryptocurrency world, a node is a computer software cum database of the blockchain, which a full node client must download on their personal computers to become a full node in the blockchain. in this way, the client can be verifying transaction on the network with the help of other nodes on the system. We proposed to implement national cryptocurrency which developed using Ethereum as a development platform that could serve national or regional people that has limited or slow internet connections like Iraq, in addition payments in countries with unstable fiat currencies, although cryptocurrencies are suffering from unstable exchange rates against fiat currencies, the use of national cryptocurrency instead of the native fiat cash could even be a far better alternative for individuals in certain countries like Iraq, Iran and Syria, with high rate of inflation. The reminder of this paper is arranging as following: an introduction, the advantages and drawbacks of cryptocurrencies, Background on Blockchain and Ethereum, implementation, results and conclusion.
Антон Назаров, Vladislav Shvedov, Vladimir Sulimin
Abstract Progressive technologies associated primarily with the use of the latest information systems are developing very quickly and are being introduced in the modern world. Recently, such phenomena as cryptocurrency and the smart contract, functioning thanks to the blockchain technology, have become very popular. The application of this technology is used in many areas: information technology, law, state, and municipal administration, etc. This article discusses the mechanisms of functioning and features of the latest Internet technologies in the context of the agro-industrial complex of Russia. Their practical significance for optimizing the relationship between the seller and the buyer has been investigated. The advantages of the blockchain for all market participants when using technology in the supply of agri-food products are justified. The research shows the possible difficulties and shortcomings of the existing content system, gives recommendations on the use of the blockchain and its evaluation for domestic producers of agricultural products. The authors propose a mechanism for using the blockchain technology in agriculture, which will change the existing practice of trade and settlement transactions between counterparties of the agricultural market.
In the paper, the authors formulate a multidimensional concept of «cryptocurrency», which takes into account the technical, economic and legal nature of cryptocurrencies. In addition, the paper defines the relationship of the concepts of «cryptocurrency» with such commonly used terms as «digital currencies», «virtual currencies» and «electronic money». The authors understand cryptocurrencies as a kind of digital money, which is the result of the functioning of the corresponding computer program (digital code). Cryptocurrencies are created using the appropriate Protocol, operating in a decentralized manner, with the use of the blockchain technology. If the issue has a centralized issuer while maintaining other features inherent in these cryptocurrencies, then it is possible to talk not about cryptocurrencies, but about the issue of electronic money. The main difference between electronic money and cryptocurrencies is the presence of electronic money of the Central Issuer and the lack of it in cryptocurrencies. Another important difference between cryptocurrencies and electronic money is the way they are issued and stored. Cryptocurrencies are stored and issued in a decentralized manner, while the information about electronic money and transactions with them can be centralized on one server. There are also other differences, such as the mandatory use of asymmetric cryptographic encryption when creating cryptocurrencies, etc. Being digital money, cryptocurrencies at the same time are a kind of digital property that performs the functions of a means of payment in the society, does not have a physical form, that is, can not exist in the form of coins or banknotes. The authors support the addition of art.128 of the Civil Code of the Russian Federation with a new object of civil law (digital money) in the context of improving the draft law «On digital financial assets».