Theoretical and Legal Perspective on Certain Types of Legal Liability in Cryptocurrency Relations

Drozd, Oleksii; Lazur, Yaroslav; Serbin, Ruslan

doi:10.30525/2256-0742/2017-3-5-221-228

Cited by 12 publications

(6 citation statements)

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“…Thus, one of the main risks is almost no legal protection of the rights of citizens in case of committing offenses against them in this sphere (Drozd et al, 2017); -third, the use of cryptocurrency may entail a number of negative consequences for the state, in particular: 1) taking into account the peculiarity of using cryptocurrency (such as anonymity, etc. ), it is possible to "launder" money gained criminally; 2) a person can withdraw money from Ukraine, avoiding payment of taxes and other obligatory payments; 3) payment of income tax, which individuals receive from cryptocurrency transactions, is undeveloped; -fourth, the essence of cryptocurrency (for example, Bitcoin) is a kind of start-up, and that is why it is difficult to predict its further development.…”

Section: Current Legal Status Of Cryptocurrency In Ukrainementioning

confidence: 99%

The Issue of Cryptocurrency Legal Regulation in Ukraine and All Over the World: A Comparative Analysis

Inshyn¹,

Mohilevskyi²,

Drozd³

2018

BJES

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Abstract.As soon as the usage of cryptocurrency in the last few years has been gaining popularity all over the world, and this global trend has affected Ukraine, the purpose of the paper is to examine the essence of cryptocurrency, to identify the issues of its legal regulation in Ukraine, as well as using the analysis of world experience in this sphere, to identify ways of the improvement for relevant domestic legislation. The authors have indicated that the cryptocurrency market (or "virtual" money) operates successfully and provides an opportunity to analyse dynamics of the cost, supply, and demand of about 90-100 different cryptocurrency. Problem's setting. The authors of the paper have emphasized that despite increasing popularity of cryptocurrency in Ukraine and throughout the world, there is no single clear definition of this concept. Therefore, the authors of this article state that cryptocurrency is a digital decentralized currency, a unit of which is a coin cryptographically protected against tampering since it is encrypted information that cannot be copied, while all information about transactions is stored in the blockchain system. Methodology. The study primarily uses comparative methods for the purposes of examination of the approaches taken under different jurisdictions towards cryptocurrency. Additionally, analysis of the body of theoretical literature on the matter was conducted. Results of the study allowed drawing several conclusions on the prospects of further development of the legal framework for cryptocurrencies in Ukraine since nowadays the country is neutral in the issue of using and regulating cryptocurrency and consequently it is losing precious time, because: first, potentially loses money, which could enter the state budget from individuals, who receive income from transactions on cryptocurrency markets; and secondly, the state runs a risk of citizens' rights violation because of no real instruments for their protection. Practical implications of these are proposals to adopt certain amendments to the current legislation in this sphere, including setting up control over brokerage of cryptocurrency, licensing of the industry, and legal definition of the cryptocurrency for the purposes of taxation, etc. Value/originality. The paper represents one of the first comprehensive studies of the current state and prospects of development of the legal framework for the cryptocurrency in Ukraine. Its conclusions provide both proposals for the development of legislation in this sphere and may serve as a basis for the future studies of this topic.

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Section: Current Legal Status Of Cryptocurrency In Ukrainementioning

confidence: 99%

The Issue of Cryptocurrency Legal Regulation in Ukraine and All Over the World: A Comparative Analysis

Inshyn¹,

Mohilevskyi²,

Drozd³

2018

BJES

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“…However, the possibility to run ABS in a cryptocurrency context bears societal risks. Evidence exists that deception and fraudulent behavior are rampant on public blockchains, in particular in the context of cryptocurrencies [55]. Hence, it can be expected that malicious actors will attempt to use the complexity of agent-based simulations as an obfuscation tool to disguise behavior that is unfavorable for other participants.…”

Section: Enterprise Abs With Open Participation a Clear Disadvantagementioning

confidence: 99%

Simulating, Off-Chain and On-Chain: Agent-Based Simulations in Cross-Organizational Business Processes

Kampik

Najjar

2020

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Information systems execute increasingly complex business processes, often across organizations. Blockchain technology has emerged as a potential facilitator of (semi)-autonomous cross-organizational business process execution; in particular, so-called consortium blockchains can be considered as promising enablers in this context, as they do not require the use of cryptocurrency-based blockchain technology, as long as the trusted (authenticated) members of the network are willing to provide computing resources for consensus-finding. However, increased autonomy in the execution of business processes also requires the delegation of business decisions to machines. To support complex decision-making processes by assessing potential future outcomes, agent-based simulations can be considered a useful tool for the autonomous enterprise. In this paper, we explore the intersection of multi-agent simulations and consortium blockchain technology in the context of enterprise applications by devising architectures and technology stacks for both off-chain and on-chain agent-based simulation in the context of blockchain-based business process execution.

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“…As for Ukraine, according to the explanation of National Bank of Ukraine regarding the legality of "virtual currency/cryptocurrency" Bitcoin usage in Ukraine -Bitcoin is a monetary surrogate, which does not have provision by the real cost and cannot be used by individuals and legal entities on the territory of Ukraine as a means of payment, as far as it contradicts norms of Ukrainian legislation (Natsionalnyi Bank Ukrainy, 2014). It should be noticed that the explanation of the National Bank of Ukraine cannot be considered as a norm as far as it does not provide any responsibility; therefore, it can be utilized as a kind of notification or warning (Drozd, Lazur and Serbin, 2017). It should be noticed that "an ambiguous approach to cryptocurrency in different countries of the world creates additional problems for determining the legal status of cryptocurrency" (Drozd, Basai, Churpita, 2017).…”

Section: The Analyses Of Bitcoin As a Cryptocurrencymentioning

confidence: 99%

Cryptocurrency in the System of Money Laundering

Dyntu¹,

Dykyi²

2019

BJES

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The target of the article is to study the place of the cryptocurrency in the process of money laundering. The subject of the article is to investigate the ways and means of usage cryptocurrency for money laundering, the possibilities, and limits. Problem’s setting. The authors of the paper have emphasized that despite the broad usage of cryptocurrency all over the world for different kinds of purchasing and transactions, there is no unified position regarding the definition of cryptocurrency, as well as its legal status. Moreover, the aforementioned circumstances trigger the difficulties during the criminal investigation of money laundering by using cryptocurrency. Thus, law informant agencies are facing challenges with the identification of criminals’ personality and the fact of crime commitment. In addition, in the article, the authors articulate the main concept of cryptocurrency: anonymity and decentralization, which engender the main aggro while crime investigation. Methodology. The research is based on an analysis of historical stages of cryptocurrency creation: from Friedrich August von Hayek’s idea of “currency independent from banking and governmental” to the establishment of decentralized currency. Moreover, there were analysed the cases of money laundering where criminals who used cryptocurrency have been identified and press charged. In addition, the comparative methods were used to collate different positions regarding cryptocurrency all over the world and inside Ukraine. The position of the main authorities and organizations regarding the legal status of cryptocurrency was investigated as well. The results of the study revealed that a cryptocurrency is a convenient tool for money laundering because it gives relative anonymity for the owner of the currency, as far as it does not require any personal information about the user and his location. Aforementioned feature minimizes the opportunity for law enforcement agencies to track back the criminal activity and to identify the criminal personality. Furthermore, cryptocurrency transactions are out of the government control because for conducting any transactions by using cryptocurrency, there is no need for their verification by third parties like a bank, governmental authority or nongovernmental organizations. In addition, the user can have more than one account and conduct transactions from different places at the same time.

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Theoretical and Legal Perspective on Certain Types of Legal Liability in Cryptocurrency Relations

Cited by 12 publications

References 0 publications

The Issue of Cryptocurrency Legal Regulation in Ukraine and All Over the World: A Comparative Analysis

The Issue of Cryptocurrency Legal Regulation in Ukraine and All Over the World: A Comparative Analysis

Simulating, Off-Chain and On-Chain: Agent-Based Simulations in Cross-Organizational Business Processes

Cryptocurrency in the System of Money Laundering

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