The Ecosystem of Cryptocurrency as an Object of Civil Rights in BRICS Countries

Author:N. Dulatova - Abd Hakim Abd Razak
Position:South Ural State University (Chelyabinsk, Russia) - Ajman University (Ajman, United Arab Emirates)
Pages:37-65
BRICS LAW JOURNAL Volume VII (2020) Issue 2
THE ECoSySTEm oF CRyPToCuRREnCy AS An oBJECT oF CIvIL RIGHTS
In BRICS CounTRIES
NATALYA DULATOVA,
South Ural State University (Chelyabinsk, Russia)
ABD HAKIM ABD RAZAK,
Ajman University (Ajman, United Arab Emirates)
https://doi.org/10.21684/2412-2343-2020-7-2-37-65
The article presents a comparative legal analysis of the modern legal regulation of the
multidimensionality of digital electronic currency in BRICS countries. It assesses the
possibility of civil circulation of a digital property right as an economic and legal segment
without clear legal regulation. It analyzes the judicial practice related to condentiality,
acquisition, and trading of vir tual currency. The article justies the ability to integrate
a single digital currency – CRYPTOBRICS, a single equivalent for all payments in the form
of cryptocurrency within the framework of BRICS for settlements and increase in the trade
exchange volume on these international platforms. This will provide for the legalization
and consolidation of the legal framework of cryptocurrency within the context of objects
of civil rights, allowing BRICS members to become regulatory leaders in the eld of digital
assets. We formulated a proposal to create an international agreement dening the
parameters of the digital currency issue based on blockchain technology for interstate
transactions, which allows the BRICS counties to establish the next stage of their mutual
integration for the free trade zone and the customs union. Unifying the civil circulation
of cryptocurrency and using the platform of modern non-monetary digital circulation
as our foundation, we concluded that BTC can be classied as a type of digital property
right. The article justied the theoretical denition of digital property right in the form
of cryptocurrency as a resource stored in a device or electronic system which allows the
end user to complete transactions using virtual currency and denominated in another
payment unit, as opposed to currencies issued by sovereign states. We suggested that
insurance companies be insured against all possible risks associated with cryptocurrency
circulation and cybersecurity as a civil measure to protect the order of intangible digital
codes – cryptocurrencies.
BRICS LAW JOURNAL Volume VII (2020) Issue 2 38
Keywords: cryptocurrency; bitcoin; blo ckchain; digital currency; digital right; object of
civil law; BRICS; digital law; digitalization of law; law digital environments.
Recommended citation: Natalya Dulatova & Abd Hakim Abd Razak, The Ecosystem
of Cryptocurrency as an Object of Civil Rights in BRICS Countries, 7(2) BRICS Law Journal
37–65 (2020).
Table of Contents
Introduction
1. Cryptocurrencies in the Civil Law of the BRICS Countries
1.1. India
1.2. Brazil
1.3. China
1.4. South Africa
1.5. Russia
Conclusion
Introduction
Today, there is a need to assess the heightened interest of investors in this
unconventional financial instrument, as well as to minimize legal risks in the
cryptography ecosystem and the scalable blockchain infrastructure. The revolution
in the eld of electronic payments and digital economy has already taken place,
but there is not yet sucient understanding of this phenomenon. Whether this
phenomenon will continue to exist, whether it will crash, or cryptocurrency will
become part of our lives – all these issues are being debated by leading world powers
trying to outline the legal framework of virtual currency.
When an author under the pseudonym Satoshi Nakamoto published
the paper “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008, the rst
cryptocurrency using the new blockchain technology was introduced.1
The principle forming the basis of Bitcoin can be formulated in one short sentence:
We consider an electronic coin as a chain of electronic signatures.
1 Michel Zade et al., Is Bitcoin the Only Problem? A Scenario Model for the Power Demand of Blockchains,
Frontiers in Energy Research, 13 March 2019 (Mar. 30, 2020), available at https://www.frontiersin.org/
articles/10.3389/fenrg.2019.00021/full.

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