Status Of Cryptocurrency Research Articles

Hukum Cryptocurrency sebagai Mata Uang dan sebagai Komoditas (Analisis Fatwa MUI tentang Hukum Cryptocurrency)

The decision of the Ijtima Ulama of the VIIth Indonesian Fatwa Commission of the Indonesian Ulema Council (Majelis Ulama Indonesia) in 2021 considers cryptocurrency as a digital currency and also as a commodity or tradable asset. However, there are differences in the law of cryptocurrency as a currency and as a commodity. This research will elaborate on the analysis of legal sources and legal ‘illat used in the fatwa and the reasons why there are legal details in the fatwa. This research includes qualitative research in the form of library research. The data analysis technique used in this research is descriptive-analytical with a normative juridical approach to Islamic law. The legal differentiation that occurs in the status of cryptocurrency as a currency and as a commodity is also inseparable from the provisions of an object that can be used as currency (naqd) and commodity (sil’ah). If cryptocurrency is considered a currency, then the law is absolutely haram, while as a commodity, the law is permissible when it meets the conditions that have been mentioned.

Cryptocurrency: A New Millennium Currency (Problem and Prospects in India)

Abstract: Crypto currency is the latest and the most significant development in the financial industry. It has brought a revolution in the Indian financial markets and created a challenge for the banking industry by presenting it as investment opportunity. Bit coin, the first and the most popular crypto currency launched in the year 2009. It has given the other option to the long standing and unchanged financial payment system which is existing for many decades. It is a decentralized digital currency that can be sent from user to user on the peer-to-peer. In the bitcoin network it can be sent without the need for intermediaries, where transactions are done through a public ledger called block chain, where user data is stored anonymously. It has created a robust digital trade markets where there is free flowing trading system without fees. They are not going to replace the traditional system of payments but they have changed the way of making payments through internet and interaction of global markets. In addition to this has given an investment option too. In the light of above facts current research has been conducted to know the status of cryptocurrency in India, various types of crypto currencies existing in India its problems and prospects. It was found that there is no legal regulation to control their operation only current announcement in the budget gains arising from the trading of these currencies has brought under taxation. But till date RBI has not given any recognition to it and the user /investor is responsible for their risk.

Modeling Vulnerability Discovery Process in Major Cryptocurrencies

These days, businesses, in both online and offline, have started accepting cryptocurrencies as payment methods. Even in countries like <italic>El Salvador</italic>, cryptocurrencies are recognized as fiat currencies. Meanwhile, publicly known, but not patched software vulnerabilities are security threats to not only software users but also to our society in general. As the status of cryptocurrencies has gradually increased, the impact of security vulnerabilities related to cryptocurrencies on our society has increased as well. In this paper, we first analyze vulnerabilities from the two major cryptocurrency vendors of Bitcoin and Ethereum in a quantitative manner with the respect to the CVSS, to see how the vulnerabilities are roughly structured in those systems. Then we introduce a modified AML vulnerability discovery model for the vulnerability datasets from the two vendors, after showing the original AML dose not accurately represent the vulnerability discovery trends on the datasets. The analysis shows that the modified model performs better than the original AML model for the vulnerability datasets from the major cryptocurrencies.

KRİPTO VARLIKLARIN İCRA VE İFLÂS KANUNLARINDA GÖRÜNÜMÜNE DAİR İSVİÇRE ÖRNEĞİ

Kripto varlıkların hukuki durumu henüz belirli değildir. Türk hukukunda bu hususta bir düzenlemeye ihtiyaç vardır. Bu çalışmada kripto varlıklarla ilgili İsviçre örneği ele alınmaktadır. İsviçre hukukunda 2021 yılında yürürlüğe giren düzenlemelerin amacı, kripto varlıklar hakkında değişik sistemleri içerisinde barındıran hukuki bir yatırım ortamı tesis etmektir. Bu anlamda İsviçre örneğinde kripto varlıklar hakkında hukuki düzenlemeler yapılırken ekonomi hukukunun maddi hukukun ve icra ve iflâs hukukunun birçok kurumlarından yararlanılmıştır.&#x0D; Kripto varlıklar için hazırlanan yatırım ortamının oluşmasına hizmet eden düzenlemelerden biri, İsviçre İcra ve İflâs Kanunu madde 242a’dır. İsv. İİK’de kripto varlıkların her icra işlemindeki görüntüsü ayrı ayrı düzenlenmemiştir. Dolayısıyla kanun koyucunun kripto varlıklar hakkında düzenleme yaparken kazuistik bir yöntem kullanmadığı belirtilmelidir. İsv. İİK’de, güvenli yatırım için önemli bir unsur olan aracı kuruluşlar ile yatırımcılar arasındaki ilişkinin iflâs tasfiyesi boyutuna odaklanılmıştır. İsv. İİK m. 242a, aracı şirketlerin tasfiyesinde kripto varlıkların hariç tutulabileceğine ilişkindir. Bu maddeden bir kaç farklı sonuç çıkartılabilir. Örneğin kripto varlıkların iflâs tasfiyesine dair maddelerde yer alması, aynı zamanda kripto varlıkların haciz işlemine konu ve iflâs masasına dahil olacağını da zımnen ifade etmektedir. Bu çalışmada İsviçre hukukunda yapılan kanuni düzenlemelerde yer alan gelişmeler ışığında, iflâs tasfiyesinde kripto varlıkların durumu tartışılacaktır.

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.

Changing the legal status of cryptocurrency in Russia in 2020–2021 as a promising step into the future

Subject. The article deals with the process of cryptocurrencies development in Russia after the change in their legal status, and the forecast of further legislative changes in this area. Objectives. The aims are to consider the change in the legal status of cryptocurrencies in Russia from January 1, 2021, the successful experience of legal regulation of cryptocurrency turnover in Japan, and to compare it with the Russian experience of recent years; to justify the need for further legal changes in the field of cryptocurrencies in the Russian Federation; to address prospects for active implementation of cryptocurrencies in Russia. Methods. The study employs methods of comparative and systems analysis, method of observation, generalization, classification, the analysis of theoretical Russian and foreign sources, the structural type of analysis, using analytical, graphical and statistical tools. Results. The paper presents the main legislative changes that have taken place in the field of cryptocurrency adoption in Russia since January 1, 2021; considers draft laws on settlement of cryptocurrencies of the past years, explains their fundamental shortcomings. It predicts legislative initiatives in cryptocurrency development in the Russian market and proves the further need for changes in the regulatory framework for cryptocurrency. Conclusions. Tightening and regulating the cryptocurrencies in the Russian financial and economic market are a timely response to speculation and fraud. The change in the legal status of cryptocurrencies in Russia is a step into the future.

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.

The Definition of Investment under International Investment Law and the Status of Cryptocurrencies

The Definition of Investment under International Investment Law and the Status of Cryptocurrencies

The status of cryptocurrency in Morocco

Cryptocurrency is a new economy of transacting value whose use case is undeniable. Its only requirement is to be human, and it is borderless. In Morocco, cryptocurrency is erasing borders and gaining popularity. However, the general public opinion on this new innovation is unclear. This study aims to elucidate the popularity of this technology in the Kingdom by means of a small survey. The present study also investigates areas related to cryptocurrency, such as people’s trust in banks. The results from the survey are contrasted with other countries to obtain a global perspective regarding Morocco’s placement in the cryptocurrency adoption spectrum. The results also suggest that Morocco has the potential to adopt this technology. Notably, 9% of the sample population claim that they have owned, or still own, some sort of cryptocurrency. However, the country faces legal obstructions and financial restrictions that impede the progress of cryptocurrency adoption.

The formation of legal base for regulation of cryptocurrency circulation in Ukraine as an important component of counteraction to their use for illegal purpose

The article highlights the current problematic aspects of formation of the organizational and legal principles for cryptocurrency circulation, as well as the threats posed by their uncontrolled circulation, identifies the main areas of improvement of its legislative regulation. It was concluded about the necessity of international standards implementation for regulating activities in the field of creation and circulation of cryptocurrencies, their control and monitoring, identification and investigation of related illegal activities, establishment of public-private partnership and development of international cooperation in this area. The experience of EU countries in determining the legal status of cryptocurrency is highlighted. The new edition of the Law of Ukraine «On Prevention and Counteraction to Legalization (Laundering) of Proceeds of Crime, Financing Terrorism and Financing the Proliferation of Weapons of Mass Destruction» is analyzed, the content of which provides a number of innovations for organizing monitoring of the use of virtual (digital) assets as a means of calculating and combating money laundering money and terrorism financing using cryptocurrency. Legislative innovations of implementation of the updated FATF recommendations on counteraction to money laundering and financing of terrorism with use of cryptocurrencies are covered: improvement of the state policy in the field of counteraction to use of cryptocurrencies in illegal activity is necessary; coordination of work of controlling and law enforcement bodies of Ukraine on counteraction to use of cryptocurrencies for illegal purposes and their interaction competent authorities of foreign states; the latest forms and methods of detection and termination of activities related to the use of cryptocurrencies for illegal purposes; analysis of potential risks and threats of using cryptocurrencies for illegal purposes; blocking the propaganda of the possibility of using cryptocurrencies as a means of payment in illegal activities and to finance its various forms; conducting legal work with the target audience on the inadmissibility of using cryptocurrencies for illegal purposes and the necessity of immediate informing the authorities about the identified cases.

CURRENT ASPECTS OF TRANSFORMATION OF ECONOMIC RELATIONS: CRYPTOCURRENCIES AND THEIR LEGAL REGULATION

The article is devoted to the analysis of transformation of economic relations due to the emergence of such phenomenon as cryptocurrency. It is substantiated that its appearance is connected with the development of the information society, the formation of the virtual economy and the spread of digitization processes in all spheres of economic activity. It is proved that despite the innovative nature of the revolutionary character and the considerable potential for stimulating radical changes in the sphere of economic relations and economic model of modern society, the cryptocurrency is a confirmation of the evolution of money. From the point of view of the theory of money, the ability of cryptocurrency to perform the functions of money (measures of value, means of payment and medium of exchange, accumulation, world money), as well as new specific functions — social, regulatory, indicative and others, — have been proved.&#x0D; Analysis of the practice of cryptocurrencies spread gave the opportunity to reveal their characteristic features on grounds of the format of money, unit of account, legal status, money creation, stability of payment, mechanism of exchange, regulation and supervision, risks, etc. In addition, the positive properties of cryptocurrencies and their possible negative effects are identified.&#x0D; It is emphasized that the adoption and active spread of cryptocurrencies leads to the transformation of economic relations, and more precisely, the objective formation of a new system of economic relations as a compensator of the negative manifestations of a modern economic society, which, at the same time, has exacerbated to some extent the threats to the traditional monetary system. This is confirmed by the tendencies of the development of the cryptocurrency market, changes in the position of the central banks of the countries of the world from rigid rejection to the development of national cryptocurrencies, including in Ukraine.&#x0D; The problematic aspects of determining the legal status of cryptocurrencies in the regulation of cryptocurrency in Ukraine from the point of view of civil-law relations and relatively criminal-law context have been identified. It is concluded that it is necessary to determine the legal status of cryptocurrency in Ukraine, taking into account the position of the leading countries of the world.

Криптовалюта як валюта майбутньої фінансової системи

Annotation. Introduction. At the present stage of development of the world is the rapid functioning of all spheres of society. Based on this, today society seeks to be progressive, modern, and therefore the world introduces us to a new type of money that is gaining popularity – cryptocurrency. Currently, humanity is aimed at finding a more progressive way of realization of any financial transactions with minimal risk. Now, the cryptocurrency is in the same city, where was the first paper money during the popularization of the concept of “printing money”. That is why, after a certain period of time cryptocurrency calculations become commonplace. Purpose. The purpose of the study is to consider cryptocurrency as the currency of the future financial system and possible prospects for its future development in Ukraine and the world. Results. The article discusses the theoretical aspects and history of cryptocurrency as currency future financial system. The main types of cryptocurrencies, the process of their creation, which is based on the solution of computers to complex mathematical problems and their entry into the market, are identified. The advantages and disadvantages of using cryptocurrencies are studied, as well as its feature as decentralization, which distinguishes it from other currencies. It is emphasized that in the world, so far, there is no consensus on the further strategy for the development of cryptocurrency in the world, its legalization and legality of use, thus analyzing the legal status of cryptocurrency in different countries and prospects for use. The legal regulation of cryptocurrencies in Ukraine in accordance with the norms of Ukrainian legislation is considered. The peculiarities of the functioning of virtual currencies in Ukraine are highlighted. Conclusions. Cryptocurrency inevitably and actively popularized worldwide in furthering decade. In some areas, such as online gaming business, this kind of currency has found its application in full. In Ukraine, there is everything necessary for legal operations with cryptocurrencies, but it is at the legislative level that there is a problem that prevents the active distribution and use of such currencies. The situation when cryptocurrency is not banned, but also not allowed, is an additional reason for fraudulent schemes. Legal entities and individuals who want or are able to use cryptocurrency is not protected. Similarly, the state can not get taxes from prospective activities. That is why the need for a clear establishment of the concept of “Cryptocurrency” by the law of Ukraine and the creation of mechanisms for regulating any activity with cryptocurrencies at the legislative level, are the priority state tasks at present. Keywords: cryptocurrency; currency; bitcoin; mining; digital currency; the legal status.

Issues of regulating cryptocurrency and control over its turnover: international experience

The article deals with an important and relevant topic – the definition of the concept and essence of cryptocurrencies, the study of the problems of their legal regulation, the rationale for control over their turnover, as well as the analysis of ways to counter money laundering that involves cryptocurrency. The authors emphasize that measures taken exclusively at the state level are not enough to create an effective, integrated and comprehensive system for regulating the legal status of cryptocurrencies. Therefore, international cooperation and the strengthening of cooperation between various states in the field of cryptocurrency regulation is important. The authors analyze the scientific doctrine regarding the essence of cryptocurrency. It was found out that there was no single approach to the definition of “cryptocurrency” among scientists. Moreover, cryptocurrencies in various laws of the world have different status. The authors used general scientific and special scientific methods, which provided an objective analysis of the purpose of the study. The research methods were used in interconnection and interdependence, which ensured the comprehensiveness and completeness of the research, as well as the validity of the obtained scientific results. The authors have determined states where cryptocurrency has an official status, is at the initial stage of legal regulation or completely prohibited at the state level. The relevance of the research consists in the actual absence of the legal framework for the regulation of cryptocurrencies, which is conditioned by the novelty of this phenomenon and the problems related to its functioning. The authors proposed their own definition of cryptocurrency based on its main features.

Cryptocurrency as an object of tax law: practice of political application and legal regulation

Problem setting. The work is devoted to the study of the legal status of cryptocurrency as an object of taxation. The legal status of cryptocurrency in legal relations between tax authorities and individuals or legal entities is an urgent problem, since there is only a small number of works on this issue. Of particular note is the study of international experience in taxation of cryptocurrency transactions, as well as an analysis of the most relevant proposals for amending national legislation in order to establish the legal status of cryptocurrency and transactions related to cryptocurrency as an object of tax legal relations. Analysis of recent researches and publications. Despite the great relevance of this topic, in the modern science of tax law there are no fundamental scientific works and studies on the problems of taxation of cryptocurrency and cryptocurrency transactions. Target of research. The purpose of the scientific article is to conduct research on the legal nature of cryptocurrency, as well as the disclosure of theoretical, practical problems and features of legal regulation of cryptocurrency and operations related to the use of cryptocurrency in modern tax law. Article’s main body. The article deals with the legal nature of transactions connected with the use of the cryptocurrency as an object of tax relations. The issues of the possibility of attributing income, as well as profits from cryptocurrency transactions to the objects of taxation of personal income tax, profit tax, and value-added tax, are disclosed in accordance with the current tax legislation. The following conclusions have been drawn: it is impossible to impose the relevant taxes on income and profits from transactions with the cryptocurrency; there is a conflict in the current legislation, according to which the proceeds from transactions with cryptocurrency may be subject to the Law ‘On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime or Terrorism Financing, as Well as Financing Proliferation of Weapons of Mass Destruction’ In addition, foreign experience of legal regulation of transactions with cryptocurrency in tax legislation in such economically developed countries as the USA, Great Britain, Canada, Germany, Switzerland, etc. has been analyzed. It has been established that nowadays, in world practice, there is no unambiguous approach to the tax regulation and taxation of cryptocurrency transactions. So, in some countries, the income from operations with cryptocurrency is taxable, while in others cryptocurrency transactions do not belong to objects of taxation. Conclusions and prospects for the development. As a result, the author presents her own proposals on amending the tax legislation aimed at determining the legal status of cryptocurrency transactions in tax law. The article is devoted to the legal nature of transactions related to the use of cryptocurrency as an object of tax relations. Foreign experience of taxation of operations with the cryptocurrency is analyzed. The author considers current proposals for amending the tax legislation of Ukraine, who’s the purpose of which is to determine the legal status and control measures for compliance with tax legislation in the implementation of cryptocurrency transactions in tax law.

GLOBAL TRENDS OF CRYPTOCURRENCY MARKET FORMATION AND REGULATION

The article describes current trends in the global financial market development as well as the formation of fundamentally new, innovative financial resources within the peering economy, such as cryptocurrencies. Its capitalization reached almost 1/100 of global gross domestic product. The purpose of the study is to analyze both the status of cryptocurrencies in different countries, including the United States of America, Japan, People’s Republic of China, and the European Union and the peculiarities of the cryptocurrency circulation development, as well as the money functions they are able to perform. The author has formulated the dilemma of this market regulation at the national and global levels. One should consider that the long-term role of crypto units depends upon the resolution of such a dilemma. And there is no unified approach of states and international organizations to the status and prospects of cryptocurrency regulation in our days. This creates a unique field of opportunities for further development of such instruments as the big economic and market movements undulate in big swings that were due to a sequence of actions and reactions by policymakers, investors, business owners, and workers. Given that state control over the emission of fiat money in the world can only be ensured to the extent that they control the banking system, the study provides an analysis of the legal status of such financial engineering products as cryptocurrencies. The author also accents on the three-tier blockchain technology. Finally, the domestic component is thoroughly analyzed, i.e. the regulation field of such instruments in Ukraine. The draft Concept of State Regulation of Cryptocurrency Transactions is also explained. Keywords: cryptocurrency; blockchain; status of crypto units; financial regulation; functions of money.

Problems of the Legal Status of Cryptocurrency in the International Settlement System

Problems of the Legal Status of Cryptocurrency in the International Settlement System

Actual problems of defining the legal status of cryptocurrencies in the context of forming a digital interdependence (economic law aspect)

The article discusses current approaches to determining the legal status of cryptocurrencies in order to create effective mechanisms of economic and legal support for their use in Ukraine. Attention is drawn to such a necessary factor as cooperation in the digital sphere between the state, individuals, and groups in the context of the «digital interdependence» paradigm, which was formulated at the #EuroDig2019 UN Digital Interdependence Report. The process of transformation of existing approaches to defining the economic and legal nature of cryptocurrencies by leading countries and international financial regulators is analyzed. The advantages and disadvantages of using cryptocurrencies have been systematized, as well as the genesis of such cryptocurrency as Bitcoin. It is determined that cryptocurrency is a new stage after the first electronic money, as well as the main advantages of its use, namely: instantaneous speed of payments (from a few seconds to several minutes); absence of transaction commission; anonymity of calculations; irreversibility of payments; no need to convert to the currency of the country of production of payments, a high degree of security of operations. The previous attempts of public authorities in Ukraine to establish a legal regime for the cryptocurrency market by adopting relevant regulatory legal acts in this area are analyzed. The ways of optimization of the legislation on cryptocurrencies in Ukraine are proposed in order to significantly enhance the innovative component of the Ukrainian economy and create competitive advantages for economic entities

The Legal Nature of Cryptocurrency

The article is a result of the cryptocurrency research with the view of its legal nature. Appearing in 2009, based on blockchain technology, cryptocurrency has quickly become worldwide popular and formed a new sphere of public relations which badly needs regulation and control from a government. One of the main problems is definition of cryptocurrency’s legal nature, i.e. answer to the question: what is cryptocurrency as an object of legal regulation? It is not easy to answer one because cryptocurrency in its matter and functions has resemblance not only with money but also with goods and non-documentary securities. Defining legal nature and status of cryptocurrency, governments of the world have an opportunity to either legally equate it to one of the existing objects of legal regulation or confront more complicated task which is to accept cryptocurrency as a fundamentally new object of legal regulation, give it legal definition based on its economic essence and start creating corresponding legislation. Author has researched special features of blockchain technology functions and emission of cryptocurrency, studied practices of legal regulations of cryptocurrency in various countries, considered positions of different states in defining legal nature of cryptocurrency and made relevant conclusions and suggestions.

Cryptocurrency operations: topical issues of theory and practice of criminal law application

The paper considers the opinions of domestic and foreign authors on the concept of cryptocurrency, the principles of its operation and the need to establish its legal status. The author’s definition of cryptocurrency is formulated and the thesis that cryptocurrency can be classified as «other property» is justified. The author analyzes the most common court decisions in criminal cases. Based on a study of foreign experience in the fight against illegal circulation of cryptocurrency, it was found that initially, before the emergence of mass demand for cryptocurrency all over the world, demand for them was observed in the criminal environment to pay for the supply of narcotic drugs and weapons, to finance terrorism and legalize (launder) income obtained in a criminal manner, in connection with which many people subsequently mistakenly assumed that transactions with cryptocurrencies are anonymous. Meanwhile, the cryptocurrency is far from being anonymous: each transaction carried out in a distributed network is permanently recorded in a public blockchain, which helps to solve crimes in this area. The adoption in the Russian Federation of a fundamental law containing the necessary terms and concepts regarding cryptocurrency activities and regulating the status of cryptocurrency in Russia will further develop measures for the criminal law protection of objects of encroachment that are currently not regulated in any way.

The Legal Status of Cryptocurrencies in the Russian Federation

The paper focuses on the definition of the legal status of the cryptocurrency in the framework of the current Russian legislation. The subject of the research is the principal scientific and practical approaches to determining the object of civil rights and the object of acquisitive crimes in terms of their adaptability to cryptocurrencies. The purposes of the work were the search for a universal algorithm for resolving civil disputes related to the turnover of the crypto currency, and the qualification of the virtual currency theft (fraud). By using historical, comparative legal and dialectical methods as well as the content analysis method parallels between cryptocurrencies and individual objects of civil rights (a thing, property rights, other property) were drawn, and a number of options for qualifying the actions related to the non-repayable withdrawal of the cryptocurrency were proposed. Finally, the paper analyzes the draft laws prepared by the RF Ministry of Finance and the Central Bank of the Russian Federation and presents the author’s vision of the prospects for legalizing the cryptocurrency as an object of civil rights.