Models of Legal Regulating Turnover of Digital Rights and Digital Currency
Abstract
Currently countries of the world are forming legal norms that regulate the turnover of new digital objects of rights that are called differently as digital rights, tokens, digital assets, digital currency, and cryptocurrency. The difference in wording does not allow countries to develop common international approaches to the cross-border turnover of such new objects of rights. The purpose of research is to propose the model of legal regulation that would allow such objects of rights to be fully included in the civil circulation. The following research tasks are being solved: analysis of the legal norms that regulate the turnover of digital rights and digital currency; formulation of the models of legal regulation of the turnover of digital rights and digital currency; study of measures and means of legal regulation; analysis of different points of view of researchers on the issue of legal regulation of relations in the digital economy; proposal of measures and means of legal regulation, based on the chosen model of legal regulation. In carrying out the study, comparative legal, formal legal, legal modeling methods were implemented. General research methods of synthesis, analysis, induction, comparison, etc. were used. Approaches used in jurisdictions differ both in terms of adopted legal norms and in creation of special conditions for the functioning digital market. Countries use a prohibitive model of legal regulation of the turnover of digital rights and digital currency (prohibition of their issuance and turnover), partially prohibitive (restrictions on the turnover), partially permissive (admission of turnover, subject to certain conditions — licensing, regulatory sandboxes, etc.), and permissive model (allowing the turnover, subject to minimum requirements). From the experience of legal regulation of foreign countries, the attention of the legislator should be drawn to the need and possibility of licensing in relation to participants in the digital market, as well as to the successful experience of the functioning of regulatory sandboxes. When establishing law enforcement practice in the Russian Federation regarding the turnover of digital rights and digital currency, the existing experience in such jurisdictions as the United States, Great Britain, Australia as well as the effective legal regulation of the crypto industry in Japan shall be considered.References
Alekseenko A.P. (2021) Regulation of digital financial assets in Hong Kong, Macau and Mainland China. Problemy Dal'nego Vostoka=Problems of the Far East, no. 2, pp. 55-65 (in Russ.) DOI: https://doi.org/10.31857/S013128120014677-5
Alkadri S. (2018) Defining and regulation cryptocurrency: fake Internet money or legitimate medium of exchange? Duke Law & Technology Review, vol. 17, no. 1, pp. 71-98.
Allen J., Blandin A. et al. (2019) Global crypto asset regulatory landscape study. University of Cambridge. Legal Studies Research Paper, No. 23, 123 p. DOI: https://doi.org/10.2139/ssrn.3379219
Barsan I. (2019) Regulating the crypto world — new developments from France. RTDF, no. 4, pp. 9-30. DOI: https://doi.org/10.2139/ssrn.3484391
Boreiko D., Ferrarini G., Giudici P. (2019) Blockchain startups and prospectus regulation. European Business Organizations Law Review, vol. 20, pp. 665-694. DOI: https://doi.org/10.1007/s40804-019-00168-6
Bylya A.B. (2020) Cryptocurrencies in the Russian Federation. Vestnik Moskovskogo gosydarstvennogo universiteta Kutafina=Bulletin of Moscow State Kutafin University, no. 9, pp. 187-197 (in Russ.)
Cappiello B., Carullo G. (2021) Blockchain, law and governance. Springer Nature Switzerland AG, 304 p. DOI: https://doi.org/10.1007/978-3-030-52722-8
Chiu I., Deipenbrock G. (2021) Routledge handbook on financial technology and law. L.: Routledge, 496 p. DOI: https://doi.org/10.4324/9780429325670
Dolgieva M.M. (2018) Foreign experience of legal regulation of cryptocurrency turnover. Russkiy zakon=Lex Russica, no. 10, pp. 116-129 (in Russ.)
Efimova L.G., Miheeva I.E., Chub D.V. (2020) Comparative analysis of concepts of legal regulation of smart contracts in Russia and foreign countries. Pravo. Zhurnal Vysshey shkoly ekonomiki=Law. Journal of the Higher School of Economics, vol. 13, no. 4, pp. 78-105 (in Russ.) DOI: https://doi.org/10.17323/2072-8166.2020.4.78.105
Ermohin I.S., Koval' A.A., Levashenko A.D. (2019) Prospects for legal regulation of cryptoeconomics and ICOs in Russia and other countries. Ekonomicheskaya politika=Economic Policy, no. 5, pp. 80-99 (in Russ.) DOI: https://doi.org/10.18288/1994-5124-2019-5-80-99
Goforth C. (2021) Regulation of crypto: whom the SEC is protecting? American Business Law Journal, vol. 58, no. 3, pp. 643-705. DOI: https://doi.org/10.1111/ablj.12192
Guznov A.G., Rozhdestvenskaya T.E. (2021) Digital currency: features of regulation in the Russian Federation. Pravoprimenenie=Law Enforcement, no. 1, pp. 58-67 (in Russ.) DOI: https://doi.org/10.52468/2542-1514.2021.5(1).58-67
Henderson M., Raskin M. (2019) Regulatory classification of digital assets: toward an operational Howey test for cryptocurrencies, ICOs, and other digital assets. Columbia Business Law Review, no. 2, pp. 443-493. DOI: https://doi.org/10.2139/ssrn.3265295
Hiramoto N., Tsuchiya Y. (2019) How cryptocurrency is laundered: case study of Coincheck hacking incident. Forensic Science Reports. Available at: URL: https://www.sciencedirect.com/science/article/pii/S2665910721000724?via%3Dihub (accessed: 01.09.2023)
Huang R. (2021) Fintech regulation in China: principles, policies and practices. Cambridge: University Press, 300 p. DOI: https://doi.org/10.1017/9781108768962
Huang Y., Mayer M. (2022) Digital currencies, monetary sovereignty, and U.S.-China power competition. Policy & Internet, vol. 14, no. 2, pp. 324-347. DOI: https://doi.org/10.1002/poi3.302
Kamalyan V.M. (2020) Legal regulation of cryptocurrencies and blockchain technologies in Germany and Italy. Aktual'nye problemy rossiyskogo prava =Current Issues of Russian Law, no. 7, pp. 197-206 (in Russ.) DOI: https://doi.org/10.17803/1994-1471.2020.116.7.197-206
Kondova G., Simonella G. (2019) Blockchain in startup financing: ICOs and STOs in Switzerland. Journal of Strategic Innovation and Sustainability, vol. 14, no. 6, pp. 43-48. DOI: https://doi.org/10.33423/jsis.v14i6.2607
Krysenkova N.B. (2019) Smart contracts in foreign legal space. Mezhdunarodnoe publichnoe i chastnoe pravo=International Public and Private Law, no. 5, pp. 28-30 (in Russ.)
Lessambo F. (2020) The U.S. banking system. Laws, regulations, and risk management. L.: Palgrave, 328 p. DOI: https://doi.org/10.1007/978-3-030-34792-5
Man'kovskyi I.A. (2020) Cryptocurrency as an object of civil circulation: prospects for legalization within the EAEU. Ekonomika. Pravo. Obshchestvo=Economics. Law. Society, no. 2, pp. 56-65 (in Russ.)
Martino P. (2021) Blockchain and banking. How technological innovations are shaping banking industry. Springer Nature Switzerland AG., 114 p. DOI: https://doi.org/10.1007/978-3-030-70970-9
Molotnikov A.E., Troshchinski P.V. (2019) Peculiarities of legal regulation of the digital economy and digital technologies in China. Pravovedenie=Legal Studies, no. 2, pp. 309-326 (in Russ.) DOI: https://doi.org/10.21638/spbu25.2019.207
Pechegin D.A. (2019) Legal regulation of cryptocurrencies in Germany. Zhurnal zarubezhnogo zakonodatel'stva i sravnitel'nogo pravovedeniya=Journal of Foreign Legislation and Comparative Law, no. 6, pp. 21-33 (in Russ.)
Ponsford M. (2015) Comparative analysis of bitcoin and other decentralised virtual currencies: legal regulation in the People's Republic of China, Canada, and the United States. Hong Kong Journal of Legal Studies, vol. 9, pp. 29-50. DOI: https://doi.org/10.2139/ssrn.2554186
Riccardo de C. (2020) Blockchain and smart contracts: legal issues and regulatory responses between public and private economic law. Italian Law Journal, vol. 6, no. 1, pp. 363-379.
Riley J. (2021) The current status of cryptocurrency regulation in China and its effect around the world. China and WTO Review, vol. 7, pp. 135-152. DOI: https://doi.org/10.14330/cwr.2021.7.1.06
Shajdullina V.K. (2018) Cryptocurrency as a new economic and legal phenomenon. Vestnik universiteta=University Bulletin, no. 2, pp. 137-142 (in Russ.) DOI: https://doi.org/10.26425/1816-4277-2018-2-137-142
Shajdullina V.K. (2018) Legal regulation of cryptocurrency turnover: foreign experience. Obshchestvo: politika, ekonomika, pravo=Society: Politics, Economics, Law, no. 4, pp. 49-52 (in Russ.)
Shajdullina V.K. (2019) Smart contracts in the financial market. Sud'ya=Judge, no. 2, pp. 21-23 (in Russ.)
Tedeev A.A. (2019) Legal regulation of cryptocurrency turnover in foreign countries and in Russia: possible approaches. Gosudarstvo i pravo=State and Law, no. 9, pp. 136-139 (in Russ.) DOI: https://doi.org/10.31857/S013207690006738-3
Trautman L. (2019) Bitcoin, virtual currencies, and the struggle of law and regulation to keep pace. Marquette Law Review, vol. 102, no. 2, pp. 447-538. DOI: https://doi.org/10.2139/ssrn.3182867
Volos A.A. (2020) Conflict of law regulation of smart contracts. Mezhdunarodnoe publichnoe i chastnoe pravo=International Public and Private Law, no. 3, pp. 24-27 (in Russ.)
.jpg)
Copyright (c) 2023 Law Journal of the Higher School of Economics
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
