This article examines an Uberization model of governance that can enable the existing United Nations (UN) regime for preventing the financing of terrorism to overcome the problems caused by the ...obfuscation techniques employed by virtual currencies (VCs). This new global governance model envisions a multi-sided platform where public and private actors are interconnected by the United Nations Security Council (UNSC). The central argument of this article is that the UNSC can build a powerful and transparent platform of cooperation and set binding rules of cooperation for all countries and members of the VC ecosystem. This governance platform will offer an entrepreneurial opportunity for private actors of the VC ecosystem to allocate their idle investigation capacity towards cooperation with national law enforcement agencies who lack investigation resources to tackle the problem of obfuscation in VCs. It will also enable national law enforcement agencies to collaborate with the most competent private cyber forensic experts in a cost-efficient way.
The broad adoption of blockchain and DLTs emphasizes the potential of a paradigm shift not only in the financial markets, but also in the
modus operandi
of the perpetrators. Thus, it is of utmost ...importance for law practitioners to understand the relevant terminology and the technical aspects regarding blockchain, virtual currencies, digital wallets, public addresses, seed phrases, etc. Likewise, it is necessary to clarify which offences are applicable when virtual currencies and other crypto-assets are either the object of the crime, or the proceeds of it. This paper tries to explain the fundamentals for a better understanding of the relationship between blockchain, virtual currencies or other crypto-assets and criminal law.
Full text
Available for:
EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, KILJ, KISLJ, MFDPS, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
•Monetary model with virtual goods and miners earning newly issued virtual currency.•Analysis of a decline in virtual currency issuance like in Bitcoin.•Effects may be opposite to those predicted by ...monetary theory.•Increase in virtual good price counteracts traditional reduction in inflation tax.•Welfare improves if virtual currency growth rate sufficiently above fiat money one.
This study develops a monetary model featuring (i) ‘virtual’ goods, sold against virtual currency, and (ii) agents providing payment services (miners), remunerated with newly issued virtual currency. Virtual money growth may have effects opposite to those predicted by monetary theory. Declining virtual currency issuance, like in Bitcoin, raises the price of virtual goods, which counteracts the traditional impact of a reduced inflation tax. The paper also shows that welfare improves as virtual currency issuance decreases, but only if the virtual currency growth rate is sufficiently larger than the fiat money growth rate.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Cryptocurrencies are a hotly debated topic because it is not clear why they should be valued as they are. Bitcoin, by far the most prominent cryptocurrency, currently trades around $9,500 USD. "Why ...is Bitcoin valuable?" is a question often heard but seldom answered well. It is not the legal tender of any nation, nor does it represent anything of physical or intrinsic value. Some people attribute its value to its scarcity, others to its anonymity, and others to its immutability, all of which are created and managed by a computer algorithm. Current theories fail to explain Bitcoin's value, or it is not immediately apparent how they might explain it. We are therefore motivated to investigate the sources of cryptocurrency value through the emergent value systems of the Bitcoin community. We use concourse theory and Q-methodology to discover five types of Bitcoin value systems that are complementary and coexisting facets of a collective whole, each type being its own internally consistent "theory" of value, and therefore our typology avoids simplistic generalizations about cryptocurrencies and the motivations behind those involved. We named the types: Fintech, Libertarians, Purists, Average Joe, and Gentrifier. Of interest, four of the five types we identified appear not to value Bitcoin for its monetary or market value, despite what is usually assumed. Instead, Bitcoin is associated with its potential as an alternative currency that may be used to exchange value, to mitigate various forms of risk, or as a force for social and cultural change. These five types may also underlie broader digital innovation processes and provide a basis from which to understand them.
Full text
Available for:
BFBNIB, IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
Rapid growth in mobile data traffic and technological improvements in mobile devices revealed the concept of collaborative Internet access via User Provided Networks (UPN). According to this ...approach, users with strong cellular connection share their own connections with other users that have limited or no cellular connection. However, in such services, one of the key issues is the users' willingness to contribute. In this study, we propose a novel incentive mechanism based on Rubinstein's sequential bargaining model. In the proposed scheme, incentives are given by the mobile network operator as virtual currencies, according to the bargaining of users and experienced quality of service. Decisions of users for requesting or offering UPN services depend on energy cost and utility estimations according to the actual communication signal parameters. For this purpose, we introduce realistic energy consumption and data rate models after performing extensive set of experiments and applying various regression methods. We implement the proposed system in a real environment and show its effectiveness in various scenarios.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
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.
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.
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.
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.
Studies have shown that the existing methodology of digital forensics preservation, which is to acquire and hash the evidence, is insufficient for cryptocurrencies as it does not secure the value. To ...address this issue, investigators secure the cryptocurrency by transferring it to a crypto wallet controlled by the Law Enforcement Agencies(LEAs). This process will unavoidably modify some data. Despite the criticality of this issue, inadequate studies have been made in this area. In addition, current guidelines on securing the cryptocurrency lack a comprehensive description from the perspective of digital evidence preservation principles. Crucial data to be documented throughout the preservation process were also not properly listed. Therefore, this study aims to address the gap in preserving cryptocurrencies from crypto wallets. Three objectives were then laid out; (1) to develop a methodology that is mapped comprehensively with digital evidence preservation principle, (2) to describe and provide justification on the inevitably modified data, and (3) to list crucial data to be documented during preservation process. The methods to achieve the objectives were critical examinations on various types of crypto wallets and by using simulation. The result shows that the study is able to provide a comprehensive crypto wallets preservation methodology to forensic investigators. It is hoped that the outcome from this study will promote better understanding, ensure consistency of implementation, and to aid investigators in explaining and justifying their actions during search and seizure in court.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
This article evaluates the legal framework of cryptocurrency in various countries. The new currency instrument is abstract currencies. They are currencies in the sense that they can be exchanged ...peer-to-peer. They are representations of numbers, i.e. abstract objects. An abstract currency system is a self-enforcing system of property rights over an abstract instrument which gives its owners the freedom to use and the right to exclude others from using the instrument. Cryptocurrency or virtual currency is a cryptographically protected, decentralized digital currency used as a means of exchange. Due to the development of new technologies and innovations, the rate of use of virtual currency is rapidly increasing throughout the globe, replacing not only cash payments and payments by bank transfer, but also electronic cash payments. Among the best-known representatives of cryptocurrencies are Bitcoin, Litecoin and Ethereum. Legal scholars have not yet reached a consensus regarding the nature and legal status of virtual currency. Virtual currency possesses the nature of obligations righ ts as well as property rights, since it may be both a means of payment and a commodity. Depending on the country, the approach to cryptocurrencies may be different. Today there is already an international cryptocurrency community that does not have a single coordinating center. Only progressive jurisdiction and state regulation of cryptocurrency activity will allow the creation of the conditions that will ensure the implementation of legitimate and safe cryptocurrency relations.
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 article is concerned with actual issues of virtual money functioning in the global and national financial markets. The article is aimed at researching the main advantages and disadvantages of ...cryptocurrency, as well as its role in the modern economy on the basis of analysis of the cryptocurrency market development in Ukraine and world-wide. It is determined that today there is no generally recognized definition of cryptocurrency in connection with the complexity and innovativeness of this economic phenomenon. The specific signs of cryptocurrency, which determine the advantages of their use for investors, are analyzed. At the same time, the presence of risks of legal, economic and technological nature is emphasized. The further prospects of use of cryptocurrency in conditions of development of the digital economy are substantiated, and also the necessity of legal and market institutionalization of cryptocurrency sphere is considered.
PDF
