Cryptocurrency regulation in the BriCs Countries and the eurasian economic union

• Author: M. Chudinovskikh - V. Sevryugin
• Position: Ural State University of Economics (Yekaterinburg, Russia) - Tyumen State University (Tyumen, Russia)
• Pages: 63-81

BRICS LAW JOURNAL Volume VI (2019) Issue 1

CRYPTOCURRENCY REGULATION IN THE BRICS COUNTRIES

AND THE EURASIAN ECONOMIC UNION

MARINA CHUDINOVSKIKH,

Ural State University of Economics (Yekaterinburg, Russia)

VICTOR SEVRYUGIN,

Tyumen State University (Tyumen, Russia)

DOI: 10.21684/2412-2343-2018-6-1-63-81

This article presents the results of a comparative analysis of the legislative approaches

to the regulation of cryptocurrencies in the BRICS countries and the Eurasian Economic

Union. During the analysis, regulatory legal acts and draft laws, including material on

judicial practice, of the Russian Federation, China, India, Brazil, the Republic of South

Africa, the Republic of Belarus, Kazakhstan, Kyrgyzstan and Armenia were studied. The

use of a comparative-legal method makes it possible to develop recommendations about

the development of legislation on the circulation of cryptocurrencies within the BRICS

countries. The assessment of the experience of EEU countries, and especially that of the

Republic of Belarus, has great importance since the Russian Federation is a member

country of both the EEU and BRICS. Comparative analysis was achieved by taking

into account such key points as the existence of a regulatory framework, regulation of

transaction taxation and counteracting the legalization of prots from crime. The results

of the analysis are presented for each country separately and then systematized in the

form of an analytical table. Based on the analysis, three approaches to the regulation

of cryptocurrencies are identied: conservative, liberal and neutral.

The study of the experiences of the B RICS and E EU countries allowed the authors to

conclude that these countries need to formulate similar requirements for the regulation

of cryptocurrencies so as to avoid the migration of investment and capital to other

countries which have a more liberal approach.

Keywords: cryptocurrency; bitcoins; ЕEU; BRICS.

BRICS LAW JOURNAL Volume VI (2019) Issue 1 64

Recommended citation: Marina Chudinovskikh & Victor Sevryugin, Cryptocurrency

Regulation in the BRICS Countries and the Eurasian Economic Union, 6(1) BRICS Law

Journal 63-81 (2019).

Table of Contents

Introduction

1. Cryptocurrency: Denition, Advantages and Problems

2. Legal Regulation of Cryptocurrencies in BRICS

3. Legal Regulation of Cryptocurrencies in the Eurasian Economic Union

4. Approaches to Regulation and the Future of Cryptocurrencies

Conclusion

Introduction

The current stage in the development of the economy and law poses more and

more dicult challenges for legislators. The emergence of new nancial and economic

instruments requires the development of adequate measures of administrative

and legal impact on economic relations. Legal and economic issues related to the

circulation of cryptocurrencies are in the zone of close attention of domestic and

foreign researchers. The scientic interest in digital currencies is comparable to

the high demands that investors demonstrate in the markets. The relevance of this

study can be evidenced by the fact that at the IV BRICS Legal Forum in Moscow, in

December 2017, a decision was made to set up a working group to work out common

approaches to the legal regulation of cryptocurrencies and their turnover in the

BRICS countries.1 There is also a similar task for the Eurasian Economic Union. The

greatest complexity of the study is associated with the rapidly changing approaches

to regulation, from full liberalization to prohibition.

The purpose of the study is to carry out a comparative analysis of the legal

approaches to the regulation of cr yptocurrencies within BRICS and the Eurasian

Economic Union (EEU). The subject of the study is the cryptocurrency as an economic

and legal phenomenon. It should be noted that many studies have focused on

Bitcoin, which is the most popular digital currency. This narrow focus on one form of

cryptocurrency seems insuciently justied, since at the legislative level other digital

assets are also understood as cryptocurrency. In view of the rapidly changing situation,

it is necessary to take into account that all data are given as of December 2018.

1 Гусарова С.А. Технология блокчейн и криптовалюта в с транах БРИКС // Экономика и предпри-

нимательство. 2017. № 10-2(87). C. 80–84 [Svetlana A. Gusarova, Blockchain Technology and

Cryptocurrency in BRICS Countries, 10-2(87) Economics and Entrepreneurship 80 (2017)].