Blockchain Papers

Tolulope Falokun

No abstract is available for this record.

John Linarelli

No abstract is available for this record.

Kalle Vilkas

This study examines how funding rate regimes affect the downside risk contribution of cryptocurrencies in equity portfolios. The research focuses on Bitcoin and Ethereum as the two largest cryptocurrency markets and evaluates whether downside risk differs across market conditions defined by perpetual futures funding rates. The objective is to connect cryptocurrency derivatives market conditions with portfolio downside risk assessment, as earlier literature has mainly examined these topics separately. The empirical analysis uses daily data from 1.1.2020 to 31.12.2025, and the data consists of returns for MSCI World Index, Bitcoin, Ethereum and perpetual futures funding rates. Research portfolios are constructed by adding cryptocurrency allocations of 5%, 10%, 15% and 20% to the equity benchmark portfolio. Downside risk is evaluated using historical Value-at-Risk, historical Expected Shortfall and Maximum drawdown. Downside risk is examined both over the full sample and separately across funding rate regimes. Funding rate regimes are classified into low, neutral and high conditions. The results suggest that adding cryptocurrency exposure increases downside risk relative to the equity benchmark across all portfolio groups. Funding rate regimes reveal meaningful differences in these results, but the effects differ between assets. Bitcoin portfolios show the clearest and most consistent regime dependence, with the most severe downside risk in the low funding regime and the mildest downside risk in the high funding regime. Ethereum portfolios show weaker and less stable regime separation. The results provide some indication that high funding conditions in Ethereum may be associated with less frequent but more severe tail losses. Specifically, high ETH funding environments appear to be associated with relatively mild Value-at-Risk results but more severe Expected Shortfall outcomes. Mixed Bitcoin-Ethereum portfolios produce strong statistical separation between regimes, with neutral funding conditions consistently associated with the mildest downside risk results. The findings suggest that derivatives market conditions may provide useful information when assessing downside risk of cryptocurrencies in equity portfolios. Funding rate conditioning appears particularly informative for Bitcoin downside risk assessment, while Ethereum results suggest that funding conditions may affect the structure of tail losses differently across market environments. The study contributes to existing literature by introducing a regime-conditional framework for evaluating downside risk under changing cryptocurrency derivatives market conditions.

Harshit Singh

Traditional property law was built on the physics of tangibility-land, bricks, and physical goods. The defining characteristic of a property right has long been exclusivity: if I possess an object, you cannot. However, the rise of digital assets, from cloud-hosted data and software licenses to non-fungible tokens (NFTs) and virtual real estate, has fundamentally challenged this paradigm. This paper examines the friction between classical property doctrines and digital assets, arguing that modern legal frameworks must shift from an absolute ownership model to a nuanced "bundle of rights" approach to prevent corporate overreach while protecting consumer interests.

Marion Colas-Blaise

No abstract is available for this record.

Tassaduq Hussain

DIGITAL ASSETS AND THE LAW: AN INDIAN PERSPECTIVE WITH COMPARATIVE LESSONS FROM THE US AND UAE Tassaduq Hussain, Fourth-Year, B.A.LL. B (Hons.) Student, School of Law, University of Kashmir, Srinagar, J&K (India) Download Manuscript doi.org/10.70183/lijdlr.2025.v03.225 Digital assets have rapidly emerged as a defining feature of the global financial ecosystem. Cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and Digital assets have rapidly emerged as a defining feature of the global financial ecosystem. Cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and Central Bank Digital Currencies (CBDCs), all rooted in blockchain technology, are reshaping our understanding of value, ownership, and financial systems. In India, while adoption has surged, the regulatory and legal framework remains fragmented, reactive, and ambiguous.

M.YU. BUDOVICH

This article addresses the pressing issue of defining the legal nature and practical description of new types of civil law objects - tokens, NFTs (non-fungible tokens), and cryptocurrency - in notarized transactions. The author analyzes the existing legal framework of the Russian Federation, including provisions of the Civil Code and Federal Law No. 259-FZ dated July 31, 2020 “On Digital Financial Assets, Digital Currency, and Amendments to Certain Legislative Acts of the Russian Federation”. The focus is on the challenges faced by notaries in identifying the unique characteristics of these digital assets to unambiguously define them as the subject matter of the transaction in the contract and notarial inscription. The article proposes practical recommendations for formulating descriptions of such objects, considering the requirements of notarial law and the principle of legal certainty. Risks associated with incorrect description of the transaction’s subject matter are examined, along with ways to mitigate them. The conclusion highlights the need for developing unified methodological approaches and potential avenues for legislative improvement.

Assistant Professor Dr. Shweta Oza

The growth of the crypto markets has changed the investment environment in a profound manner by elevating cryptocurrencies from purely speculative assets to institutional-grade investments. The current paper evaluates the investment characteristics of Bitcoin and Ethereum, the most popular cryptocurrencies, based on the modern portfolio theory framework. According to the analysis carried out for 2020-2025, the Bitcoin asset demonstrates an impressive Sharpe ratio of 1.7, substantially exceeding that of the S&P 500 (0.54) and gold (0.48-0.54). In favorable market conditions, Ethereum outperforms Bitcoin in terms of risk-adjusted returns, exhibiting even better characteristics. The study highlights a change in the mechanism of price fluctuations in the market from the \\\"four-year cycle\\\" to the flow of institutional capital. At the same time, correlation analysis shows that despite the absence of high correlation of these assets with other asset classes over the long term, the correlation between the two increases under market pressure. As a result, 1-4% of portfolio weight can be safely allocated to each asset, depending on the investment strategy.

Davide Paglia, Lorenzo Rigatti, Andrea Sabatini, Fabrizio Venettoni

No abstract is available for this record.

Paolo Ciocca, Irene Tagliamonte

No abstract is available for this record.

Aldo Álvarez-Risco, Shyla Del-Aguila-Arcentales

No abstract is available for this record.

Lyana S. Unatlokova, Tatyana A. Kiyashchenko

This article examines decentralized finance as an institutional and technological alternative to traditional financial intermediation in the Russian Federation. The economic nature of protocol-based liquidity redistribution, the role of smart contracts, tokenization, and digital financial assets are explored. It is demonstrated that decentralized instruments can reduce transaction costs, expand access to capital, and create new investment channels. However, they are accompanied by technological, legal, fiscal, and systemic risks that require balanced government regulation.

Ms. Aditi Methi

The rapid evolution of cryptocurrency, blockchain technology, and Web3 ecosystems has significantly transformed global financial systems and digital economies. India has emerged as one of the largest cryptocurrency adoption markets due to increasing internet penetration, fintech innovation, digital payment infrastructure, and a young technology-oriented population. Simultaneously, the rise of decentralized finance (DeFi), tokenized assets, Central Bank Digital Currencies (CBDCs), and artificial intelligence integration with blockchain has redefined the scope of digital assets beyond speculative investment instruments. This research paper examines the emerging trends, regulatory developments, opportunities, and challenges associated with cryptocurrency and blockchain adoption in India in 2026. The paper also analyses government policies, taxation frameworks, investor behavior, cybersecurity risks, and institutional participation. The findings suggest that India possesses strong potential to become a global blockchain innovation hub if supported by balanced regulation, improved investor awareness, and sustainable technological development.

С. Жоу

Статья рассматривает невзаимозаменяемые токены как новый тип цифровых объектов, чья экономическая значимость опережает формирование устойчивых юридических конструкций, пригодных для их квалификации и защиты в трансграничном обороте. Показано, что NFT в большинстве случаев функционирует как уникальная запись в распределенном реестре с метаданными, отсылающими к цифровому или физическому объекту, вследствие чего возникает систематическое расхождение между ожиданиями приобретателя и реальным объемом приобретаемых прав: контроль над токеном не тождествен обладанию исключительными правами на связанный контент и обычно сопровождается лишь ограниченными лицензионными возможностями, заданными пользовательскими соглашениями и логикой смарт-контрактов. Сопоставление подходов ключевых юрисдикций выявляет конкурирующие модели: в США акцент переносится на защиту товарных знаков и квалификацию отдельных выпусков через критерии инвестиционного контракта; в Великобритании и Сингапуре развивается признание токенов объектом собственности, что расширяет арсенал обеспечительных мер и средств реституции даже при неопределенности личности нарушителя; в ЕС наблюдается нормативная асимметрия вследствие исключения уникальных токенов из общеевропейского режима, что стимулирует национальные эксперименты и риск фрагментации; в Китае оборот допускается в формате «цифровых коллекционных предметов» при запрете криптовалютных расчетов и жестком ограничении вторичного рынка; в России сохраняется неопределенность квалификации, что приводит к обращению к категориям «иное имущество» и к точечной практике включения токенов в конкурсную массу без проработки их гражданско-правовой природы. Отдельно анализируются коллизионные сложности из-за невозможности привязки цифрового актива к классическим критериям местонахождения, а также совокупность рисков, связанных с нарушениями интеллектуальных прав при минтинге, ограниченной эффективностью удаления контента, конфликтом автоматического исполнения кода с институтами недействительности и расторжения, вариативностью налоговой квалификации, уязвимостью рынка к легализации доходов через фиктивные сделки, регуляторными последствиями дробных NFT и проблематикой наследования при утрате приватных ключей. В качестве сквозного вывода прослеживается необходимость технологически нейтральной гармонизации и разработки минимальных стандартов раскрытия информации, коллизионных привязок и механизмов ответственности посредников, учитывающих гибридную природу токена как объекта контроля над записью и совокупности договорных прав доступа к связанному содержанию. The article examines non-fungible tokens as a new type of digital objects whose economic significance outpaces the formation of stable legal constructions suitable for their qualification and protection in cross-border circulation. It is shown that in most cases an NFT functions as a unique entry in a distributed ledger with metadata referring to a digital or physical object, as a result of which a systematic discrepancy arises between the purchaser’s expectations and the actual scope of rights acquired: control over the token is not identical to ownership of exclusive rights to the associated content and is usually accompanied only by limited licensing opportunities defined by user agreements and the logic of smart contracts. A comparison of the approaches of key jurisdictions reveals competing models: in the United States, the emphasis is placed on trademark protection and the qualification of certain issuances through the criteria of an investment contract; in the United Kingdom and Singapore, recognition of tokens as objects of property is developing, which expands the arsenal of security measures and remedies of restitution even when the identity of the infringer is uncertain; in the EU, regulatory asymmetry is observed due to the exclusion of unique tokens from the pan-European regime, which stimulates national experiments and the risk of fragmentation; in China, circulation is permitted in the format of “digital collectibles” with a ban on cryptocurrency settlements and strict restrictions on the secondary market; in Russia, uncertainty of qualification persists, leading to recourse to the category of “other property” and to isolated practice of including tokens in the bankruptcy estate without elaboration of their civil-law nature. Particular attention is paid to conflict-of-laws difficulties caused by the impossibility of linking a digital asset to classical criteria of location, as well as to a set of risks associated with infringements of intellectual property rights during minting, the limited effectiveness of content removal, the conflict between automatic code execution and the institutions of invalidity and termination, the variability of tax qualification, the vulnerability of the market to money laundering through fictitious transactions, the regulatory consequences of fractional NFTs, and the problems of inheritance in the event of loss of private keys. As a cross-cutting conclusion, the need for technologically neutral harmonization and the development of minimum standards for information disclosure, conflict-of-laws connecting factors, and mechanisms of intermediary liability is identified, taking into account the hybrid nature of the token as an object of control over a record and a set of contractual rights of access to the associated content.

Yusra Aldhubyani, Alhanouf K Alsulami

This study aims to clarify the concept and types of digital assets within a comparative analytical framework, enriched by an examination of a number of English judicial precedents specifically addressing the precautionary attachment of digital assets. The study begins by defining digital assets, their types, and their legal nature in this context. It then addresses the concept of precautionary attachment, its conditions, and its scope. Furthermore, the study examines the extent to which digital assets may be subject to precautionary attachment through an analysis of judicial precedents under English common law, while also highlighting key features of the Singaporean approach in this regard. This is intended to contribute to the Saudi legal framework in light of the absence of explicit legislative regulation of digital assets within the Saudi Enforcement Law. The study also seeks to clarify the extent of judicial authority in issuing precautionary judicial orders relating to digital assets, while highlighting the practical and legal challenges associated with their intangible nature and cross-border character. The study reaches several findings, most notably that the Saudi regulator has not yet provided an explicit statutory definition of digital assets in any of the applicable laws or regulations, nor has it permitted dealing in or trading such assets within the Kingdom, as confirmed by official statements issued by regulatory authorities. Nevertheless, in contrast, digital assets have occupied a significant place in comparative legal scholarship, particularly within comparative legal systems. Digital assets are defined as data recorded on the blockchain that confer specific rights such as ownership, access, representation, voting, or practical use. The scope of digital assets extends to include a wide range of digitally stored content and rights, including cryptocurrencies, non-fungible tokens (NFTs), and Bitcoin. The study also proposes several recommendations, most importantly that the Saudi regulator should introduce an explicit statutory provision defining digital assets within one of the applicable laws or regulations, whether within the framework of the Capital Market Law, commercial transaction laws, or monetary regulations. This would ensure clarity regarding the legal nature of such assets, define their scope, and enhance the ability to regulate and deal with them in accordance with statutory rules and specific controls. The study further recommends amending Article (24/3) of the Implementing Regulations of the Enforcement Law to expressly include digital assets among the assets subject to precautionary attachment. Following such amendment, the provision would read as follows: All assets of the debtor shall be subject to precautionary attachment, whether movable, immovable, or digital assets in all their forms.

Murad M. Madzhumayev

The paper examines the distinctive features of the criminal-legal qualification of the unlawful use of means of product individualization (trademarks), regulated by Article 180 of the Criminal Code of the Russian Federation (CC RF), concerning the issuance (minting) and circulation of virtual assets (Non-Fungible Tokens, or NFTs) within decentralized environments. The objective of this research is the investigation and subsequent development of conceptually substantiated proposals aimed at resolving systemic legal conflicts that arise when applying the norms of substantive criminal law to acts involving the infringement of exclusive trademark rights within the context of the transboundary, anonymous, and speculative digital economy of the metaverse. As key findings, the study puts forward reasoned solutions that seek to adapt both the principle of jurisdiction and the corpus delicti to the realities governing the circulation of NFTs. Firstly, concerning the determination of the place where the crime was committed, it is proposed to abandon the practice of basing jurisdiction on the physical location of the perpetrator's device. Instead, the principle of jurisdiction by effect should be applied, whereby the territory of the Russian Federation is recognized as the place of the crime if the rights holder who incurred major damage is registered in Russia. Secondly, for the qualification of the repetition element, the mass minting of NFTs accomplished through a single smart contract is proposed to be qualified as a single continuous offense. Thirdly, regarding the calculation of major damage, the necessity of excluding the speculative market value of the NFT is substantiated. Consequently, the damage should be definitively calculated as the aggregate sum of the potential licensing remuneration (royalty) and the documented costs associated with suppressing the infringement. As an alternative de lege ferenda proposal, it is suggested that the legislative provision «major damage» within the disposition of the article 180 CC RF be substituted with «extraction of illicit income in a large amount».

Тойлыбек Симбаев

The article discusses the issue of confiscation of property in relation to criminally discovered digital assets (cryptocurrencies, tokens, NFT (Non-fungible token) and other electronic digital rights). Digital assets are a symbol of economic development, security and transparency, investment, and financial democracy. The article analyzes the role of digital assets in the legalization of proceeds from crime. The international The Financial Action Task Force (FATF) standards, of which the Republic of Kazakhstan is a member, are analyzed. One of the urgent legal problems today is the creation of a mechanism for the confiscation of digital assets. The article highlights the importance of creating this mechanism. Examples and cases from practice are analyzed, as well as samples from foreign countries, and the effectiveness of their application in the Republic of Kazakhstan is analyzed. The legal differentiation of the process of preservation and further effective use of digital assets after the mechanism of confiscation is carried out. The effectiveness and legality of storing confiscated digital assets on the Binance Kazakhstan digital asset exchange and the use of cryptocurrencies by law enforcement agencies in crypto exchanges are analyzed. The article explains the importance of secure storage of confiscated digital assets, transparency of information about stored digital assets, and the creation of mechanisms to regulate the emergence of full control over confiscated digital assets in the state. The article defines the significance for the Republic of Kazakhstan of the use of the institution of confiscation (non-conviction based confession) without a court verdict. A legal assessment is given of the conformity of the institution of confiscation of property without conviction with the presumption of innocence and inviolability of property rights.

Arthur Stepanyan

the paper examines the phenomenon of decentralized finance (DeFi) as one of the most promising and at the same time controversial areas of the digital economy. DeFi is defined as an ecosystem of protocols and applications based on blockchain and smart contracts that allows financial transactions to be carried out without the intermediation of traditional institutions. It is noted that the key advantages of the technology are transparency, automation, reduction of transaction costs, and expansion of the accessibility of financial services. Simultaneously, risks associated with the lack of unified regulatory approaches, high vulnerability of smart contracts, the use of DeFi for unlawful purposes, and the uncertainty of legal liability are emphasized. Particular attention is paid to AML/KYC problems, as well as the use of DeFi platforms for money laundering of criminal proceeds.

Lamara Qoqiauri

The work is devoted to an overview of modern investment methods, the cryptocurrency market, ways of their development and strategies in this direction. The article analyzes the investment opportunities of cryptocurrencies; presents conclusions about the main advantages and disadvantages of each investment method, the level of risk, determining factors and investment attractiveness. The article considers one of the main methods of investing in cryptocurrency - speculation on the rates of various coins. In particular, two strategies for generating income through speculation are considered: the first is Buy&Hold, it is designed for long-term investment, involves buying cryptocurrency on the exchange and storing it in an account for a certain period of time; the second - the Buy&Sell strategy differs from the previous one in that it is designed for short-term investment. The presented work briefly describes a widely known method of investing in cryptocurrency - mining; in this case, all activities are based on blockchain technology, and the efficiency of the blockchain directly depends on the computing power of the computer. As a result, the profitability of mining is relatively low, special, very expensive equipment is required; In this paper, we have studied and tried to convey to the reader a widespread method of investing in cryptocurrency — initial coin offering (ICO), which means a form of attracting investment funds for the implementation of a project by issuing cryptocurrency. It is argued that the above tactics are also borrowed from the traditional financial market — initial public offering (IPO). In conclusion, the article summarizes the pros and cons of cryptocurrency investment methods; several simple recommendations are presented that will help increase your existing capital and diversify your investment portfolio.

M. M. Madzhumaev

Objective : to critically analyze the possibility of extending the existing spatial criminal law principles to acts committed in the decentralized virtual worlds of the metaverse, and to develop proposals that include updating the approach to establishing jurisdiction over such virtual crimes. Methods : the methodological basis of the research is a set of general scientific methods and approaches of scientific cognition – dialectical, formal logical (analysis and synthesis, induction and deduction), systematic, as well as private scientific methods – formal legal, legal modeling, interpretation. The study relies on an analysis of judicial practice, foreign legislation, technical features of blockchain technologies and decentralized autonomous organizations, which makes it possible to identify gaps in legal regulation and propose conceptually new solutions for determining the crime scene in a virtual environment. Results : the study revealed a limited implementation of the current generally accepted principles of determining jurisdiction in relation to virtual crimes that do not have physical coordinates. The proposed multifactorial jurisdiction model redefines the “crime scene” taking into account factors such as the offender’s digital identity, the nature and location of digital assets, platform management protocols, and the actual damage caused. Assumingly, the immutable and verifiable nature of blockchain transactions can serve as a legal equivalent of a physical presence to establish personal jurisdiction, allowing criminal prosecution to be initiated even in cases where the actual location of the offender remains unknown. Scientific novelty : the paper presents an approach that implies the fundamental transformation of reactive, adaptive legal regulation principles into a proactive, comprehensive framework designed specifically for the unique challenges of the metaverse. A paradigm-changing hypothesis was put forward: that a permanent (stable) digital footprint of the offender in virtual spaces can serve to exercise jurisdiction. The model systematically presents the idea of harm as the most important link between virtual offenses and their consequences in the real world. Practical significance : it is currently impossible to apply legal norms and rules to relations in the metaverse, taking into account their specifics. The main provisions and conclusions of the study can be used to improve the mechanisms of legal regulation of the metaverse and to form international protocols on data exchange and mutual legal assistance for searching and collecting evidence based on blockchain technology. They may help to develop legislative initiatives aimed at creating integrated legal mechanisms that are scalable and resistant to rapid technological changes, characteristic for the digital environment.

Robert Mullings

ABSTRACT This paper examines the impact of regulatory controls on Bitcoin's excess returns and volatility. The paper innovates by proxying changes in the regulatory environment using global Google search volume intensity data. The generated regulatory indices accurately identify episodes of regulatory tightening within cryptocurrency markets. A three‐factor model—incorporating market, momentum, and size factors—is employed to evaluate the effects of regulation on Bitcoin returns. The study also assesses the influence of changes in the regulatory environment on volatility using additional controls. Findings reveal that increased regulation significantly reduces monthly Bitcoin returns and increases return volatility. These effects are both statistically and economically significant, robust across multiple proxies for regulatory activity, and persist even when accounting for the effects of the COVID‐19 pandemic. The results highlight the real regulatory risks associated with Bitcoin investments, particularly for risk‐averse investors, and underscore the importance of policy developments in shaping cryptocurrency market dynamics.

Daniil R. ZHESTKOV

Subject. This article analyzes the use of cryptocurrencies in international and domestic settlements. Objectives. The article aims to analyze current approaches to government regulation of cryptocurrencies in various countries, and identify successful practices and risks associated with the lack of regulation. Methods. For the study, I used a comparative analysis, as well as SWOT and PEST analyses. Results. The article reveals the diversity of approaches to cryptocurrency regulation in various countries and identifies the specific features of legal regulation in the Russian Federation, including an analysis of the federal laws adopted in 2024 that legalize mining and permit the use of cryptocurrencies in international settlements within the framework of experimental legal regimes. It systematizes the international experience in cryptocurrency regulation, assesses the current regulatory framework of the Russian Federation, and indicate possible areas for its improvement, taking into account modern economic realities and technological trends. Conclusions. There is the need for a balanced approach to regulating cryptocurrencies that would take into account risks to financial stability and economic development, as well as promote international cooperation and the development of the crypto economy.

Larisa A. Aguzarova, Aslanbek V. Burnatsev

The banking system today faces an unprecedented level of uncertainty in the field of anti-money laundering and counter-terrorist financing (AML/CFT). Rapid digitalization, the emergence of anonymous payment methods, the intensification of cross-border transactions, and the widespread use of cryptocurrencies are fundamentally transforming the nature of financial flows while simultaneously creating a fertile ground for complex financial abuse schemes. This problem is further exacerbated by growing geopolitical tensions and sanctions pressure, which destabilize traditional mechanisms of international oversight and deterrence. This article offers a comprehensive analysis of the emerging challenges shaping the risk landscape in AML/CFT for the banking sector. It examines key directions in the evolution of threats — from the use of decentralized finance and smart contracts to the increasing role of informal payment channels. Alongside this, the article explores the prospects for a technological response from financial institutions, particularly the adoption of artificial intelligence, big data, blockchain solutions, and RegTech tools. It is emphasized that the effectiveness of these approaches depends not only on banks’ capacity to invest in technology but also on their ability to adapt organizational culture and regulatory engagement. Special attention is given to the Russian context, including the specific features of the legal framework, the level of digital maturity among banks, and participation in international initiatives. At the heart of the discussion lies the question: to what extent is the domestic system prepared to manage next-generation risks amid the transformation of global financial oversight? AML/CFT in the banking sector can no longer be regarded merely as a procedural function limited to formal compliance. It is becoming a strategically important domain at the intersection of financial stability, technological modernization, and national security. The resilience of the financial system in the coming years will depend on the ability of banks to adapt to this new risk profile, staying ahead not only of criminal schemes but also of the inertia of regulatory models.

Vardan JANGOZIAN

This article explores the process of building a digital state and the role of public administration digitalization in that context. The relevance of the study lies in the need to enhance governance efficiency through the integration of information technologies. The research aims to provide a comparative analysis of the theoretical foundations of digital governance, international best practices, and their practical applicability. The methodology combines systems analysis with comparative research tools. Findings reveal that digital instruments significantly improve transparency, operational efficiency, and citizen engagement. The scientific novelty of the study is the proposed structural model of interaction between digital governance mechanisms and public institutions. The article also offers practical recommendations for designing and implementing digital strategies in Armenia’s public administration system. The results are applicable to state policy formulation, strategic IT planning, and higher education curricula in the field of public governance and digital transformation.