Legal Regulation Of Cryptocurrencies Research Articles

FOREIGN EXPERIENCE IN LEGAL REGULATION OF THE USE OF CRYPTOCURRENCY AS A MEANS OF PAYMENT

This article is devoted to the study of foreign experience in the legal regulation of cryptocurrencies, comparing their status by studying the experience of countries such as China, India, Japan, Venezuela. Cryptocurrencies have seriously affected the world since their appearance. States reacted differently to their appearance. Countries such as India or China, having banned them at the legislative level, have come to the gradual adoption and attempts to create their own, state-owned cryptocurrency. Venezuela, making an attempt to keep up with the times, has provided a project of its own, state-supported cryptocurrency. Consequently, they began to be able to control the process of cryptocurrency turnover, securing their status as a full-fledged means of payment at the legislative level. Many states have begun to consider cryptocurrencies as a commodity in order to be able to tax them with income tax.The relevance of this article is caused by the presence of some private law problems of regulating cryptocurrencies, which are discussed in this article. The article examines some legislative problems of using cryptocurrencies, and the impossibility of their regulation by states. In addition, the article emphasizes the need to create a single international standard for regulating cryptocurrencies, which would take into account the interests of all parties and ensure the security and transparency of operations with cryptocurrencies.

Legal regulation of cryptocurrency and cryptocurrency operations in the European Union

The article “Legal Regulation of Cryptocurrency and Cryptocurrency Operations in the European Union” offers a comprehensive examination of the evolving legal landscape surrounding cryptocurrencies within the European Union (EU). It begins by defining cryptocurrencies, highlighting their unique characteristics such as decentralization, volatility, and potential for misuse. These features pose significant regulatory challenges, as traditional legal frameworks may not be fully equipped to address them.
 The article delves into the EU’s response to these challenges. It outlines the various legislative measures that have been implemented to regulate cryptocurrencies and related operations. These measures aim to strike a balance between fostering innovation in the digital economy and ensuring consumer protection and financial stability. The article discusses the implications of these regulations, noting that while they have brought some clarity and security to the sector, they also risk stifling innovation if not carefully calibrated.
 The article explores the ongoing debates within the EU regarding the appropriate regulatory approach to cryptocurrencies. It underscores the need for a nuanced understanding of the technology and its potential impacts. The article argues that regulation should not merely react to the challenges posed by cryptocurrencies but should also anticipate future developments to remain effective and relevant.
 The article concludes by emphasizing the importance of dialogue and collaboration among regulators, industry stakeholders, and the public in shaping the regulatory approach to cryptocurrencies. It suggests that such engagement can help ensure that regulations are not only responsive to current issues but also adaptable to future changes.
 The article provides a thorough and insightful analysis of the legal regulation of cryptocurrency and cryptocurrency operations in the European Union. It underscores the complexity of the issue and the need for a dynamic and forward-looking regulatory approach. The article serves as a valuable resource for anyone interested in understanding the intricacies of cryptocurrency regulation in the EU.

Taxation of Crypto Assets in Lithuania and abroad: evaluations, proposals for improvement

The article analyses national and foreign approaches to the legal regulation of ICO, STO and cryptocurrencies from a comparative perspective, examines the models of taxation of crypto assets in Lithuania and Japan, and pays special attention to the legal regulation in Germany as an EU country. It concludes that the tax and legal regulation of cryptocurrencies in Lithuania and Germany is similar, as both countries follow the principle of neutrality – they do not prohibit, but they do not regulate by law. The paper also makes recommendations for recognising cryptocurrencies as legal tender by including regulation of crypto assets in national tax laws, defining types of crypto assets, uniform concepts, and taxation principles. According to the authors, such a solution would provide more legal certainty for natural and legal persons and would help to manage the risks associated with crypto assets.

Criminal liability for illegal possession of cryptocurrency in Ukraine

This study investigated the criminal liability for illegal acquisition of cryptocurrency in Ukraine, which is relevant in connection with the considerable spread of cryptocurrencies and cases of their illegal acquisition, as a result of which significant material damage is caused to the victims. Specifically, this is explained by the collapse of cryptocurrency exchanges and hacker attacks on cryptocurrency wallets. The purpose of this study was to investigate what criminal liability is prescribed for illegal possession of cryptocurrency in Ukraine. The study employed a dialectical approach and methods of system and technical and legal analysis, as well as a formal and logical method. Approaches to understanding the term “cryptocurrency” were defined, and its types were specified. The features of the functioning of blockchain technology were covered. This paper analysed the legal regulation of virtual assets in Ukraine, their relationship with cryptocurrency. It is noted that at its core, cryptocurrency is not a virtual asset and that it is advisable to consider it an electronic asset based on the blockchain – a decentralized public register of all cryptocurrency transactions conducted on the network. Shortcomings in the legal regulation of cryptocurrencies in Ukraine were highlighted, specifically, it was noted that the signs of virtual assets do not fully coincide with the signs of cryptocurrencies. The most common ways of illegal possession of cryptocurrency were specified, and problematic issues of bringing individuals who have come into illegal possession of cryptocurrency to criminal responsibility were outlined. This paper substantiated the impossibility of bringing individuals who have come into illegal possession of cryptocurrency to criminal responsibility in Ukraine, considering the principle of legal certainty and avoiding analogy in criminal law. The necessity of criminalizing illegal possession of cryptocurrency was proved. Practical recommendations on making appropriate amendments to the Criminal Code of Ukraine were formulated. The theoretical value of this study lies in the formation of an approach to the need to criminalize the illegal possession of cryptocurrencies, and its results can be used in law-making activities.

Legal Regulation of Taxation of Cryptocurrency Turnover: A Comparative Legal Study of the Tax and Legal Regulation of the Republic of Malta and the Russian Federation

The author discusses the features of the tax and legal regulation of cryptocurrencies in the Republic of Malta and the Russian Federation. A study of legal regulation and a study of the positions of legal scholars of the Republic of Malta, in terms of regulating the turnover of cryptocurrencies, as well as the experience of legal regulation of the turnover of cryptocurrencies in the Russian Federation. As a result of the study, the author identified a gap in the legal regulation of taxation of cryptocurrencies in the Russian Federation, in comparison with the legal regulation of the Republic of Malta. Public relations arising in connection with the turnover of cryptocurrencies are not fully regulated in any country of the world at the moment, including in terms of taxation of transactions using cryptocurrencies. In this connection, it is necessary to take into account the foreign experience of legal regulation of taxation of cryptocurrency turnover, including the Republic of Malta. The problem lies in the fact that amendments to the Tax Code of the Russian Federation have not been adopted at the moment, which would regulate the taxation of cryptocurrency turnover in the Russian Federation. The goal of the study is to investigate the experience of legal regulation of taxation of cryptocurrencies of the Republic of Malta and to identify aspects that could be applied to form the legal regulation of taxation of turnover of cryptocurrencies in the Russian Federation. Previously, comparative legal research in this area has not been conducted.

Legal Regulation of Taxation of Cryptocurrency Turnover: A Comparative Legal Study of the Tax and Legal Regulation of the Republic of India and the Russian Federation

The article discusses the features of the tax and legal regulation of cryptocurrencies in the Republic of India and the Russian Federation. A study of legal regulation and a study of the positions of legal scholars of the Republic of India, in terms of regulating the turnover of cryptocurrencies, as well as the experience of regulatory regulation of the turnover of cryptocurrencies in the Russian Federation. As a result of the study, the author identified a gap in the legal regulation of taxation of cryptocurrencies in the Russian Federation, in comparison with the legal regulation of the Republic of India. Public relations arising in connection with the turnover of cryptocurrencies are not regulated in any country of the world at the moment, including in terms of taxation of transactions using cryptocurrencies. In this connection, it is necessary to take into account the foreign experience of legal regulation of taxation of cryptocurrency turnover, including the Republic of India. The problem lies in the fact that amendments to the Tax Code of the Russian Federation have not been adopted at the moment, which would regulate the taxation of cryptocurrency turnover in the Russian Federation. To investigate the experience of legal regulation of taxation of cryptocurrencies of the Republic of India and to identify aspects that could be applied to form the legal regulation of taxation of turnover of cryptocurrencies in the Russian Federation. Previously, comparative legal research in this area has not been conducted.

Legal Regulation of Taxation of Cryptocurrency Turnover: a Comparative Legal Study of the Tax and Legal Regulation of the Republic of Turkey and the Russian Federation

The article discusses the features of the tax and legal regulation of cryptocurrencies in the Republic of Turkey and the Russian Federation. A study of regulatory regulation and a study of the positions of legal scholars of the Republic of Turkey, in terms of regulating the turnover of cryptocurrencies, as well as the experience of regulatory regulation of the turnover of cryptocurrencies in the Russian Federation. As a result of the study, the author identified a gap in the legal regulation of taxation of cryptocurrencies in the Russian Federation, in comparison with the legal regulation of the Republic of Turkey. Public relations arising in connection with the turnover of cryptocurrencies are not regulated in all countries of the world at the moment, including in terms of taxation of transactions using cryptocurrencies. In this connection, it is necessary to take into account the foreign experience of legal regulation of taxation of cryptocurrency turnover, including the Republic of Turkey. The problem lies in the fact that amendments to the Tax Code of the Russian Federation have not been adopted at the moment, which would regulate the taxation of cryptocurrency turnover in the Russian Federation. The aim of the study is to investigate the experience of legal regulation of taxation of cryptocurrencies of the Republic of Turkey and to identify aspects that could be applied to form the legal regulation of taxation of turnover of cryptocurrencies in the Russian Federation.

Legal regulation of cryptocurrencies in Russia: problems and prospects

Legal regulation of cryptocurrencies in Russia: problems and prospects

Legal Regulation of Cryptocurrencies and NFT in the Russian Federation

Legal Regulation of Cryptocurrencies and NFT in the Russian Federation

Features of the Russian legal regulation of cryptocurrencies in the context of their worldwide recognition as a means of payment

Features of the Russian legal regulation of cryptocurrencies in the context of their worldwide recognition as a means of payment

The model of legal regulation of cryptocurrencies in the Russian Federation

The model of legal regulation of cryptocurrencies in the Russian Federation

Cryptocurrency as a payment agent

The paper examines the essence of cryptocurrency as a method of payment has been investigated and identifies its key features (exchange for goods or services; exchange for classic currency; payment for goods and services; minimum level of possibility of abduction; payments, fast and direct transactions; investment asset; business development in cryptocurrency). Different approaches to determining the legal nature of cryptocurrency are analyzed (cryptocurrency as a method of payment; cryptocurrency as a foreign currency; cryptocurrency as a financial asset; cryptocurrency as a financial pyramid). The conclusions of the EU court, the courts of the national system on the use of cryptocurrency as a means of payment are analyzed. The legal nature of cryptocurrency is determined through the prism of world practices of its use. The possibility of using cryptocurrencies in terms of their ability to perform the basic functions of money is analyzed. The paper examines two attempts of legislators to regulate the issues of taxation, legal nature and legal regulation of cryptocurrency in 2019 and 2020. Attention is also paid to the relevant institutions where you can pay with cryptocurrencies, namely: “Spendabit”, “CoinATMRadar”, exchange office in online networks – WebMoney. According to the National Bank of Ukraine, the danger of cryptocurrency transactions is indicated. Examples of the main risks associated with the purchase, sale, exchange and conversion of cryptocurrencies are given (possibility of loss of funds due to theft, possibility of fraud, lack of infrastructure, significant price fluctuations of cryptocurrencies, lack of guarantees for return of invested funds in cryptocurrencies). In conclusion, attention is drawn to the need for legislative regulation of the essence of cryptocurrency for further effective evolution.

DIGITAL CURRENCY AS A SUBJECT OF CRIME AND A MEANS OF COMMITTING CRIMES

In this article, the author examines the issues of the criminal legal status of digital currency as an objectand as a means of committing a crime. In 2020, a special Federal law was adopted defining the legal status ofdigital assets, as well as amendments were made to the Civil Code of the Russian Federation concerning theestablishment of the legal status of cryptocurrency or digital currency in the terminology of these regulationsas an object of civil rights. Significant changes in the civil legal regulation of cryptocurrencies have led to achange in approaches to assessing the criminal legal status of virtual money. In particular, the recognitionof digital currency by other property has allowed solving a number of qualification issues, but until now,criminal law is very cautious about the official recognition of cryptocurrency as the subject of a crime. Theauthor of the work offers options for the qualification of crimes committed using digital currency, in theabsence of changes in the criminal law and explanations of the Highest Court.

Cryptocurrency in transnational offenses: criminal and civil legal aspects

The emergence of digital technologies contributed to the emergence and rapid development of digital commerce, and at the same time, the number of electronic payments, the use of digital and virtual currencies increased. The article presents an analysis of the legal nature of such a financial instrument as cryptocurrency, characterizes the distinctive features, highlights the advantages and disadvantages. The purpose of the work is to consider the regulatory legal position of cryptocurrency in the modern world, to highlight the legal practice in cases of the circulation of cryptocurrency, to study the role of cryptocurrency in transnational offenses, to explore possible options for combating cybercrime, which is carried out using the use of cryptocurrency. The methodology of the work is represented by a set of methods and techniques, operations that are used to study the topic and achieve the set goal, namely: hermeneutic, historical, extrapolation, comparative-legal, comparison and generalization, analysis, synthesis, deduction. Results of the work: in today's reality there is no unified international legal regulation of cryptocurrency, which complicates the prevention and fight against transnational offenses, the means or subject of which are cryptocurrencies and mining.

Legal aspects of cryptocurrency’s circulation: international experience and possibilities of its application in Ukraine

Based on documentary scientific methodology, the legal aspects of the circulation of cryptocurrencies in Ukraine and other countries of the world are analyzed. The relationship between the state's level of economic development and the level of its interest in cryptocurrencies is demonstrated. It was shown that almost all successful states can create and implement their own cryptocurrency. In addition, it was noted how important the issue of choosing the proper form of legal regulation of the cryptocurrency industry is today. For example, many researchers and experts have emphasized that a kind of compromise must be reached on issues related to the legal regulation of cryptocurrencies. It is therefore concluded that this applies to both the sphere of domestic and international law, where clarity, transparency and unambiguousness of legal norms must prevail. Regarding the latter, it is clarified that cryptocurrencies should no longer exist as a shadow source of income for unidentified individuals. Instead, they should be completely banned and eliminated in both the economic and legal fields, or they should be legalized and regulated by current legislation.

Liability in the field of digital payment systems and cryptocurrencies: mission is (im)possible?

An electronic payment system is a system of settlements between different organizations and Internet users when buying or selling goods or services over the Internet. The relevance of the research topic is that electronic payment systems are used widely at the present stage of the development of society. This area has not escaped criminal activity. Penalties for digital payment systems and cryptocurrencies should be commensurate with the level of damage caused. The article analyzes the international legal establishing liability for this type of crime. At the instant, it remains an open question for further study of the legal status of cryptocurrency in different countries and the settlement of penalties for violations in the field of digital payment systems and cryptocurrency. Research methods: comparison, observation, analysis, synthesis, analogy, the system method, generalization method, and formal-legal method. According to the results of the study, the international comparative aspect of the types of liability for offenses in the field of digital payment systems was analyzed; the issue of criminal liability for offenses in the field of digital payment systems and cryptocurrencies, as a key punishment for these actions; identified means of protection of payment systems; the issue of legal regulation of cryptocurrency in different countries.

Legal regulation of cryptocurrency in Ukraine

Introduction. Cryptocurrency is a relatively new financial market instrument, but due to a lack of the fundamental principles of the legal regulation and legal regulation of market of cryptocurrency, individuals and legal entities, who have at their disposal the virtual assets are effectively deprived of an effective way to protect their ownership of such assets. The following key features of cryptocurrency are outlined: lack of control and restrictions on financial transactions, anonymity, the possibility of using it as an investment tool, the speed of transactions, a high degree of security. The purpose of the paper is explores the question of definition of legal essence, the maintenance of cryptocurrency is investigated. Results. Nature and legal uncertainty does not allow it to be identified with any of the related concepts (money, securities, currency value, means of payment, currency, money surrogate, etc.). That is, cryptocurrencies are currently in Ukraine outside the scope of legal regulation. The analysis of definition of a concept of cryptocurrency in the draft law on circulation of cryptocurrencies in Ukraine is carried out; prospects for the legislative implementation of cryptocurrency in Ukraine, in addition, the author draws attention to the novelties of the legislation on financial monitoring, namely certain provisions of the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of Weapons of Mass Destruction Proliferation”. Conclusion. The analysis of the characteristics of cryptocurrency leads to a conclusion that the cryptocurrency can be understood as electronic money. The paper presents a vision of further trends in the use of cryptocurrency in everyday life and business environment, opens up an opportunity for further research in the field of the cryptocurrency market, further development of Ukraine and integration to the world financial system.

FINANCIAL AND LEGAL REGULATION OF BLOCKCHANE TECHNOLOGY: STATUS AND PROSPECTS OF CRYPTOVOLUTE USE

Abstract. The essence of cryptocurrencies is considered and the definition of their legal status is offered. The experience of some jurisdictions regarding the opportunities and threats of using and regulating cryptocurrencies has been studied. The authors analyzed the cryptocurrency market. The factors that led to the widespread use of cryptocurrency, which include financial instability, significant currency fluctuations, limiting capital flows and inflation of the currency in the country. The problem of information protection using blockchain technology, which is solved by a combination of block design and cryptographic protection, is considered. The capitalization of TOP cryptocurrencies for the last three years is analyzed, among which the leading ones are Bitcoin (VTS), Ethereum (ETH), Tether (USDT) and others. Identified issues that need to be addressed in the field of finance and legal regulation. 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 cryptocurrencies 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. Keywords: technology blockchain, cryptocurrency, virtual currency, legal regulation of cryptocurrencies, state functions, cryptocurrencies taxation. JEL classіfіcatіon F01, F20, K33, K34 Formulas: 0; fig.: 0; tabl.: 1; bibl.: 23.

The Current Status of Cryptocurrency Regulation in China and Its Effect around the World

There is no single approach in the world regarding the legal regulation of cryptocurrency. Most countries are wary of legalizing this payment instrument, fearing problems associated with tax evasion, terrorist financing, fraud and other illegal transactions. Nevertheless, the issue of legalization of cryptocurrencies has recently moved to a different level as the market capitalization of cryptocurrencies grew to over USD 237 billion 2020, with several leading cryptocurrencies such as Bitcoin skyrocketing in value in 2021. The explosive growth has been lead in no small part by China, the world’s largest and most important market for cryptocurrency in terms of mining, investing and research. This article reviews the current trends in cryptocurrency regulation with a particular focus on China, including an analysis of current cryptocurrency laws in China, as well as the new Chinese Cryptography Law. Also, it explains recent developments in Chinese regulation and policy will continue to shape the development of the global cryptocurrency markets.

Certain Aspects of the Analysis of Cryptocurrency Transactions during the Prevention and Investigation of Crimes

The analysis of separate tools for the visualization of movement of cryptocurrency values, and also identification of users who carried out the corresponding transactions has been carried out. The advantages and disadvantages of cryptocurrency from the point of view of offenders and law enforcement agencies have been studied. The main directions of using cryptocurrency in a criminal environment have been determined. The current state and perspectives of normative and legal regulation of cryptocurrency in Ukraine have been analyzed. Theoretical principles of cryptocurrency functioning have been studied. The basic concepts used in this area have been revealed. The properties of cryptocurrency have been described. The mechanism of its issuance of guaranteeing pseudo-anonymity while working with cryptocurrency has been outlined. Some features of blockchain technology and formation of cryptocurrency addresses have been revealed. It has been noted that one of the first and most well-known cryptocurrency is bitcoin. The format of bitcoin address presentation has been described. It has been emphasized that bitcoin wallet software can operate with any number of addresses or each address can be served by a separate wallet. The technology of mixing transactions and the method of increasing the anonymity of CoinJoin have been described. The authors have revealed the possibilities of separate services intended for the analysis of cryptocurrency transactions (Maltego, Bitconeview, Bitiodine, OpReturnTool, Blockchain.info, Anyblockanalytics.com, Chainalysis, Elliptic, Ciphertrace, Blockchain Inspector). The process of risk assessment and construction of visual chains of cryptocurrency transactions has been demonstrated on the example of the “Crystal Expert” service. Different types of bitcoin addresses’ holders and risk levels have been described. The main and additional investigation tools used on the “Crystal Expert” platform have been revealed. Based on the conducted analysis, the authors have defined the main tasks for law enforcement agencies at the current stage of development of cryptocurrency. The basic requirements for tools designed for cryptocurrency analysis have been outlined. The authors have suggested some measures of law enforcement agencies’ respond to threats related to cryptocurrency.