scholarly journals LEGAL RISKS OF SING DIGITAL TECHNOLOGIES IN BANKING

2019 ◽  
pp. 32-39
Author(s):  
V. M. Kamalyan
Keyword(s):  
Digital Technologies ◽  
Legal Regulation ◽  
International Standards ◽  
Smart Contracts ◽  
National Legislation ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Legal Risks ◽  
Proceeds Of Crime ◽  
Financing Of Terrorism

Based on the analysis of legal risks of using smart contracts in banking activities, the author concludes that there is a need for special legal regulation of the use of digital technologies in banking, which would minimize the legal risks examined in the paper. The author believes that such legal regulation in order to minimize legal risks should define a smart contract as a way of fulfillment of obligations rather than as a design of a contract concluded in writing. Analyzing the legal risks associated with the person identity during the introduction of digital technologies in banking, the author suggests the use of blockchain technology as the basis of the system of identification of customers using exclusively the advantages of this technology in compliance with the requirements of international standards and national legislation regulating counteraction to laundering of proceeds of crime and financing of terrorism. This solution will simplify and protect the system of identification and processing of data regarding the clients of banks, but it requires effective state support and legal regulation.

scholarly journals Smart Contract: The Concept, Legal Nature, Features of Conclusion and Execution

Legal Concept ◽  
2019 ◽  
pp. 54-60
Author(s):  
Nizami Safarli
Keyword(s):  
Russian Federation ◽  
Legal Regulation ◽  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Legal Nature ◽  
Domestic Legislation ◽  
The Russian Federation ◽  
Statutory Regulation

Introduction: the paper is devoted to a new phenomenon in business activity in the conditions of IT development that contribute to the creation of secure contractual relations on the Internet on the basis of transactions executed through smart contracts. The author notes that the need for amendments that could fill the loopholes in the current legislation is obvious. And, first of all, it concerns Blockchain technology – the algorithm that mediates the safe development, conclusion and execution of smart contracts. Blockchain technology is considered in the paper as one of the safest means for concluding and executing smart contracts. The author argues that the study of the concept, legal nature and essence of smart contracts is relevant in the light of spreading their share in the total array of transactions in the world economy in conjunction with the changing domestic legislation governing the relevant sphere, as well as the international integration processes affecting the intensification of foreign economic activity of the Russian Federation. The smart contract concepts formulated by the Russian legislator in the process of upgrading the array of statutory regulation under conditions of economy digitalization are studied and compared. The features of conclusion and protection of the smart contract in the civil legislation of the Russian Federation are analyzed. In order to fully articulate the concept of the smart contract, reflecting its essence, functional purpose and legal nature, it is proposed to create a special law that would focus on the conclusion and implementation of “the smart contract” and the specification of the general norms of the civil code. At the same time, the norms of other special laws would supplement and correct the provisions fixed by this act depending on the sphere of managing and the legal regulation branch. The concept of the smart contract is formulated; its value for economic and contractual activity, and also the advantages and disadvantages of its application are established. The possible classifications of smart contracts are given.

scholarly journals Russian experience of using digital technologies and legal risks of AI

2020 ◽  
Vol 224 ◽  
pp. 03005
Author(s):  
Elena Trikoz ◽  
Elena Gulyaeva ◽  
Konstantin Belyaev
Keyword(s):  
Personal Data ◽  
Digital Technologies ◽  
Legal Regulation ◽  
International Standards ◽  
Practical Implementation ◽  
Scientific Methods ◽  
Legal Provisions ◽  
Legal Risks ◽  
Analysis And Synthesis ◽  
General Scientific

The aim of the present article is to analyze the Russian experience of using digital technologies in law and legal risks of artificial intelligence (AI). The result of the present research is the author’s conclusion on the necessity of the practical implementation of legal provisions in this area, and their judicial enforcement in federal subjects with the aim of compliance with international standards of human rights. The authors concluded that in the Russian Federation, there is no normative and technical regulation of the process of destruction of personal data, which creates serious problems for operators. The research methodology based on general scientific and private scientific methods of cognition (the dialectical method, methods of analysis and synthesis, deduction and induction, comparative legal and historical legal methods). Moreover, the range of legislative and law enforcement problems in the field of using AI technology is very extensive. For this reason, the authors of the article used the methodology for collecting data on legislative acts and legal regulation in the field under research. A number of federal and regional legal acts were analyzed using systemic-structural and formal-dogmatic methods, including the research of their practical orientation and effectiveness for modern challenges.

scholarly journals FATF requirements on regulation of cryptocurrencies: problems of implementation into national legislation

2020 ◽  
pp. 1-19
Author(s):  
Veronika Andreevna Kinsburskaya
Keyword(s):  
Service Providers ◽  
Task Force ◽  
Legal Regulation ◽  
International Standards ◽  
Financial Assets ◽  
Federal Law ◽  
National Legislation ◽  
Explanatory Note ◽  
Financing Of Terrorism ◽  
Financial Monitoring

The object of this research is the international standards AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) for the sphere of virtual assets (cryptocurrencies) developed by FATF (Financial Action Task Force), and possibilities of their effective implementation into the national legislation. The author examines new revision of the Recommendation 15 and Glossary (of October 2018), explanatory note to new revision of the Recommendation 15, and implementation guidance of the risk-oriented approach towards virtual assets and service providers in the sphere of virtual assets (of June 2019); considers provisions of the Federal Law of July 31, 2020 No.259-FZ “On Digital Financial Assets, Digital Currency, and Amendments to Certain Legislative Acts of the Russian Federation” becoming effective in January 2021. Based on the analysis of most recent international and Russian acts on the questions of legal regulation of cryptocurrencies turnover, the need is underlined for introducing amendments to the Russian legislation with regards to exercising financial monitoring of transactions with cryptocurrencies in Russia. The author indicates certain fundamental aspects related to collection and validation of personally identifying information on the holders of cryptocurrency and tracing of their transactions.

scholarly journals SMART CONTRACT AS A FORM OF CIVIL CONTRACT

2019 ◽  
pp. 15-20
Author(s):  
V. Varavka
Keyword(s):  
Information Technologies ◽  
Legal Status ◽  
Legal Regulation ◽  
Smart Contracts ◽  
Electronic Signature ◽  
Mathematical Algorithm ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Civil Contract ◽  
Legal Force

Development of information technologies, cryptocurrencies and technology of distributed networks has caused the appearance of smart con- tracts as new types of civil contract. They have been widely used in recent years in such areas as initial coins offering (ICO), financial sector, inter- national trade and public services. At the same time the legal status and legal regulation of smart contracts are uncertain. These uncertainties cause many legal risks of smart-contractsutilization. The purpose of this article is to find out the conception of smart contract as a form of civil contract, to research its legal status and legal regula- tion issues and to develop proposals for the improvement of legal regulation of smart contracts and cryptocurrencies in Ukraine. By its legal nature a smart contract is a digital form of a civil contract realized in programming code automatically executed in a distributed network. Like a civil contract, smart contract has such elements as parties, subject and essential terms of the contract. The legal force of a smart contract depends on whether it includes the fundamental features of a civil contact, such as evidence that parties have intention to create legal relations, understandabil- ity of contract conditions and possibility to perform the terms of the contract under duress. The main advantages of a smart contract are its ability to significantly accelerate and reduce costs of the transaction and guarantee the fulfillment of contract terms regardless of the contractual parties' and third parties' will. The main risks of a smart contract are uncertainty of legal status of a smart contract and cryptocurrencies as a means of payment, complexity of expressing the contact terms in a mathematical algorithm, risk of software bugs and hacking attack. To solve the problems of legal regulation of smart contracts in Ukraine it is necessary to change the legislation in order to settle the legal status of cryptocurrencies and recognize a smart contract as a form of a civil contract. It is necessary to identify parties of the smart contract, confirm their agreement on the terms of the smart contract by using digital electronic signature. A smart contract should be supplemented by text application containing the es- sential terms of the contract which will have legal force in trail. It is necessary to implement blockchain technology in the state registers and pro- vide legal ability to make adjustments in the registers automatically for the performance of smartcontracts.

scholarly journals Smart-Contracts in the digital economy: Contractual regulation and dispute resolution

2021 ◽  
Vol 2 (4) ◽  
pp. 40-50
Author(s):  
S. A. Sinitsyn ◽  
M. O. Diakonova ◽  
T. I. Chursina
Keyword(s):  
Legal Regulation ◽  
Self Control ◽  
Third Party ◽  
Physical Contact ◽  
Smart Contracts ◽  
Digital Platforms ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Materials Used ◽  
Automatic Code

This article has been prepared for the research purpose of identifying, disclosing, and justifying certain trends in the development of civil law and procedures in the context of the spread of smart contract practices and the expansion of their spheres of application. At the moment, there is no uniform approach to choosing an optimal form for the legal regulation of smart contracts within the system of contract law in modern legal systems or international law; meanwhile, globalization and the digitalization of the economy imply the growth of cross-border transactions. The emergence of smart contracts is due to the development of e-commerce, in which the parties’ interactions are carried out electronically instead of in physical exchanges or direct physical contact. Smart contracts gaining popularity in circulation are based on two interrelated elements: firstly, they eliminate a person’s direct participation in some or all cases of executing the agreement using an automated code designed for execution without reference to the intentions of the contracting parties after publication; secondly, they make use of decentralized blockchain technology, and also provide automatic code execution without any party’s potential intervention, so as to eliminate or reduce the self-control and third-party control of the commitment.This study examines the content, conclusion, validity, protection of rights and legitimate interests of the parties, interpretation, and legal nature of smart contracts. The research materials used foreign experience in resolving disputes from smart contracts on digital platforms (Kleros, JUR, Aragon Network Justice, OpenCourt, OpenBazaar), as well as domestic and foreign literature on smart contracts. This research has been prepared based on general (deduction, dialectical analysis, intersectoral relations of objects) and specialized (comparative-legal, economic-legal) methods of scientific experimentation.The authors conclude that there are no grounds for considering a smart contract as a new classification element of the system of contractual regulation (type or kind of contract). In addition, the analysis shows that the resolution of smart contract disputes through digital platforms remains radically uncertain, and currently is not creating obvious advantages in comparison with traditional judicial proceedings.

Responsible for the laundering (legalization) of the proceeds of corruption under the legislation of foreign States

2020 ◽  
Author(s):  
Ilya Vlasov ◽  
Natal'ya Vlasova ◽  
Natalya Golovanova ◽  
Anatoliy Kapustin ◽  
Artem Cirin
Keyword(s):  
World Bank ◽  
International Organizations ◽  
Legal Regulation ◽  
International Standards ◽  
Weapons Of Mass Destruction ◽  
Mass Destruction ◽  
Close Link ◽  
Proceeds Of Crime ◽  
Financing Of Terrorism ◽  
International Instruments

The risks of global and international regional (i.e. supranational) character associated with the extension of the economic and social base of terrorism and proliferation of weapons of mass destruction. Numerous studies demonstrate the close link between corruption and money laundering. In this manual presents an analysis of international-legal regulation of responsibility for laundering (legalization) of the proceeds of corruption. Considered global, international instruments, documents of regional international organizations. Particular emphasis is placed on the institutional mechanisms of counteracting laundering (legalization) of the proceeds of corruption, which include international organizations involved in the establishment and implementation of international standards (FATF, world Bank, the Egmont group, Basel Committee, Wolfsberg group, regional fatfstyle, etc.). For civil servants, employees of public organizations, scientists, teachers and graduate students, as well as for anyone interested in the issues of counteraction to laundering of proceeds of crime, financing of terrorism and corruption.

A Study of Use Cases for Smart Contracts Using Blockchain Technology

2021 ◽  
pp. 1823-1844
Author(s):  
S R Mani Sekhar ◽  
Siddesh G M ◽  
Swapnil Kalra ◽  
Shaswat Anand
Keyword(s):  
Natural Disaster ◽  
Vital Role ◽  
Use Cases ◽  
Use Case ◽  
Smart Contracts ◽  
Digital Identity ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Healthcare Finance ◽  
Natural Disaster Management

Blockchain technology is an emerging and rapidly growing technology in the current world scenario. It is a collection of records connected through cryptography. They play a vital role in smart contracts. Smart contracts are present in blockchains which are self-controlled and trustable. It can be integrated across various domains like healthcare, finance, self-sovereign identity, governance, logistics management and home care, etc. The purpose of this article is to analyze the various use cases of smart contracts in different domains and come up with a model which may be used in the future. Subsequently, a detailed description of a smart contract and blockchain is provided. Next, different case-studies related to five different domains is discussed with the help of use case diagrams. Finally, a solution for natural disaster management has been proposed by integrating smart contract, digital identity, policies and blockchain technologies, which can be used effectively for providing relief to victims during times of natural disaster.

scholarly journals International legal standards of advocacy in Russian environmental legislation

2021 ◽  
Vol 244 ◽  
pp. 12005
Author(s):  
Irina Kvach
Keyword(s):  
Oil And Gas ◽  
Legal Regulation ◽  
International Standards ◽  
International Treaties ◽  
National Legislation ◽  
Legal Reforms ◽  
Legal Standards ◽  
The North ◽  
Oil And Gas Fields ◽  
Conceptual Role

The article deals with conceptual questions of the role and place that international standards of advocacy take in the system of sources of advocacy in Russia. The author, relying on the decisions of the Plenum of the Supreme Court of Russian Federation, points out the priority importance of international standards and rules in matters of legal regulation of legal proceedings. Considering a significant array of international documents adopted within the framework of international organizations, including the Council of Europe, the author singles out those containing international standards of advocacy. The study of Russian national legislation through the prism of international standards of advocacy makes it possible to conclude that, as a result of prolonged legal reforms, the main fundamental provisions of national legislation have been brought into line with the requirements of international standards, but work in this direction has not yet been over. As a result, the author points out the conceptual role of international treaties as sources of advocacy. The findings became the basis for further author’s research of international standards, as a legal basis for the regulation of advocacy to protect the rights and freedoms of indigenous peoples of the north in the development of oil and gas fields on their ancestral lands.

scholarly journals Advantages and disadvantages of smart-contracts as the basis for the emergence of ownership

2021 ◽  
pp. 101-105
Author(s):  
K. Nekit
Keyword(s):  
Property Rights ◽  
Legal Aspect ◽  
Legal Regulation ◽  
Third Party ◽  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Technical Errors ◽  
Smart Contract ◽  
Legal Nature ◽  
Definition Of

The article examines the concepts, legal nature of smart contracts, as well as the advantages and disadvantages of smart contracts as a basis for ownership. The technical and legal aspect of the concept of smart contract is considered. Models of using smart contracts are described. Approaches to determining the legal nature of smart contracts are presented. It is concluded that two models must be considered when using smart contracts. The first model is external, when the program code does not replace the agreement, but only automates its execution. The second model is internal, when the code completely or partially replaces the terms of the agreement. Among the advantages of smart contracts as grounds for the emergence of property rights can be identified, first of all, the inability to change the terms of the contract and interference in its work. However, at the same time, this feature is a disadvantage of the smart contract, as it does not allow to take into account the objective circumstances that may affect the implementation of the agreement. The problem of oracles when using smart contracts is also considered. It is noted that the use of oracles actually means the involvement of a third party in the transaction with all the risks that arise from it. The problem of involving notaries and state registrars in transactions on acquisition of property rights on the basis of a smart contract is analyzed. The problems of lack of legal regulation of smart contracts, in particular, related to its transnational nature, is investigated. The problem of protection of the rights of the parties to the smart contract is analyzed, in particular, related to technical errors and outside interference. Temporary solutions regarding the use of smart contracts and general recommendations on the legislative definition of smart contracts are proposed.

scholarly journals Need for Legal Regulation of Blockchain and Smart Contracts in the Shipping Industry

2020 ◽  
Vol 9 (2) ◽  
Author(s):  
Marko Perkušić ◽  
Šime Jozipović ◽  
Damir Piplica
Keyword(s):  
Complex System ◽  
Human Factor ◽  
Legal Regulation ◽  
Smart Contracts ◽  
Shipping Industry ◽  
The European Union ◽  
Existing Problems ◽  
Blockchain Technology ◽  
Potential Impact ◽  
Insight Into

The paper analyzes the potential impact of blockchain technology and smart contracts on the shipping industry. As the shipping industry represents a complex system of various actions that have to be controlled and registered, blockchain technology could serve as a tool to allow the streamlining of numerous processes, whilst at the same time taking the human factor out of multiple elements where trust between involved parties is an issue. The authors therefore first present how blockchain technology works and what smart contracts are, in order to give an  insight into their applicability in the shipping sector. After a general overview of the technological and legal characteristics of blockchain technology and smart contracts, the authors present examples of relevant subjects, relations, and contracts in the shipping industry. Based on the charter party, a key contract in the shipping industry, the authors present the existing problems which could potentially be solved using blockchain technology. Besides the benefits of blockchain technologies, the authors furthermore point out the existing deficiencies that still make blockchain technology hard to apply in legal relations within the shipping industry. Based on these insights, the authors highlight the current developments in this area and present the existing and expected regulatory reforms of blockchain solutions and smart contracts within the European Union.

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