Digital Financial Assets: Concept and Legal Nature
https://doi.org/10.21684/2412-2343-2024-11-1-32-57
Abstract
Tokens and other digital technologies, in essence, can be considered neither property nor objects of civil law, nor are they inherently a part of civil rights per se. These technical solutions acquire a corresponding legal status only when they become an object of such legal relations. When this occurs, they are considered digital assets and are consequently subject to legal regulations. The legal nature of tokens is amatter of much dispute: some define them as objects of civil law, while others view them as a means to confirm the rights to a legal object. This article aims to prove that tokens can serve both functions. In most cases, tokens serve as a means of confirming rights to certain tangible objects (for instance, tokens as a means to secure civil rights). In this function, tokens for cryptocurrencies and digital securities, however, become legal objects in and of themselves because they play a part in legal relations (that is, tokens serve as a legal object). Tokens can be objects of absolute and relative rights. The common law doctrine treats an absolute right to cryptocurrencies and digital securities as a property right. Continental law, on the contrary, cannot include them in the property rights category since property within this legal framework is always tangible. Digital assets, however, are intangible. Therefore, they are not property. This article suggests that digital assets are objects of a new absolute right that is similar to property rights, except for one distinction: an object is not necessarily a thing. Based on the authors’ concept, this new right can be referred to as an absolute digital right.
About the Authors
L. Efimova
Kutafin Moscow State Law University (MSAL)
Russian Federation
Russian Federation
Liudmila Efimova – Full Professor, Head, Banking Law Department; Professor, Department for Financial Transactions and New Technologies in Law, Private Law Research Centre under the President of the Russian Federation named after S.S. Alekseev
9 SadovayaKudrinskaya St., Moscow, 125993
О. Sizemova
Lobachevsky State University of Nizhny Novgorod
Russian Federation
Russian Federation
Olga Sizemova – Associate Professor, Head, Civil Law and Process Department; Professor, Financial University under the Government of the Russian Federation
23 Gagarin Ave., Nizhny Novgorod, 603950
D. Chub
Gazprombank
Russian Federation
Russian Federation
Dmitry Chub – Director, Payment Services Legal Support Division, Legal Department
16/1 Nametkina St., Moscow, 117420
References
1. Bali M. Les cryptomonnaies, une application des blockchain technologies àla monnaie [Cryptocurrencies: An Application of Blockchain Technologies to Money] (2016).
2. Barban P. & Magnier V. Blockchain et droit des sociétés [Blockchain and Corporate Law] (2019).
3. Barbaroux N. et al. Blockchain et finance– approche pluridisciplinaire (IP/IT) [Blockchain and Finance– AMultidisciplinary Approach (IP/IT)], 28 Répertoire IP/IT et Communication 125 (2020).
4. Callens E. Financial Instruments Entail Liabilities: Ether, Bitcoin, and Litecoin Do Not, 40 Computer Law & Security Review (Article 105494) (2021). https://doi.org/10.1016/j.clsr.2020.105494
5. De Filippi P. & Hassan S. Blockchain Technology as a Regulatory Technology: From Code Is Law to Law Is Code, 21(12) First Monday (2016). https://doi.org/10.5210/fm.v21i12.7113
6. De Vauplane H. Crypto-assets, token, blockchain, ICO: un nouveau monde? [Cryptoassets, Token, Blockchain, ICO: A New World?], 810 Revue Banque (2017).
7. De Vauplane H. Fongibilité du Bitcoin: l’exemple du «Bitcoin Fork» et des contrats de prêt de Bitcoin [Bitcoin Fungibility: Case Study of the Bitcoin Fork and Bitcoin Loan Contracts], 2/3 Revue Trimestrielle de Droit Financier 89 (2018).
8. De Vauplane H. Les prestataires de services sur actifs numeriques de la loi PACTE [Digital Asset Service Providers under the PACTE Law], 4 Revue Trimestrielle de Droit Financier 78 (2018).
9. Drummond F. Bitcoin du service de paiement au service d’investissement [Bitcoin: From Payment Service to Investment Service], 5 Bulletin Joly Bourse 249 (2014).
10. Garcia-Teruel R.M. & Simón-Moreno H. The Digital Tokenization of Property Rights: A Comparative Perspective, 41 Computer Law & Security Review (Article 105543) (2021). https://doi.org/10.1016/j.clsr.2021.105543
11. Geiregat S. Cryptocurrencies Are (Smart) Contracts, 34(5) Computer Law & Security Review 1144 (2018). https://doi.org/10.1016/j.clsr.2018.05.030
12. Guadamuz A. All Watched Over by Machines of Loving Grace: ACritical Look at Smart Contracts, 35(6) Computer Law & Security Review 1 (2018). https://doi.org/10.1016/j.clsr.2019.1053380267-3649
13. Guggenhiem G. & Guggenhiem A. Les contrats de la pratique bancaire suisse [Contracts of Swiss Banking Practice], 5 Stämpfli Editions SA Berne 200 (2014).
14. Kablan S. Pour une évolution du droit des contrats: le contrat électronique et les agents intelligents [Evolution of the Contract Law: Electronic Contract and Intelligent Agents] (2008).
15. Landau J.P. Rapport au ministre de l’économie et des finances, Les crypto-monnaies [Report to the Minister of the Economy and Finance, Cryptocurrencies] (2018).
16. Legeais D. Blockchain et actifs numériques [Blockchain and Digital Assets] (2nd ed. 2021). Legeais D. Enjeux de la blockchain et des crypto-monnaies [Challenges for Blockchain and Cryptocurrencies], 6 Revue de droit bancaire et financier 54 (2019).
17. Legeais D. Loi PACTE: les dispositions relatives aux actifs numériques et aux prestataires de services numériques [The PACTE Law: The Provisions Relating to Digital Assets and Digital Service Providers] (2019).
18. Marraud des Grottes M. Bitcoin, fork et prêt: un arrêt structurant vient d’être rendu [Bitcoin, Fork and Loan: A Structuring Stop Has Just Been Made] (2020).
19. Nakamoto S. Bitcoin: A Peer-to-Peer Electronic Cash System (2009). Normand E. Réussir l’examen certifié [Passing the Certified Exam] (2020).
20. O’Rorke W. Le statut juridique des criptoactifs [Legal Status of Cryptoassets] (2018).
21. Sarnakov I. Digital Financial Assets: Segments and Prospects of Legal Regulation in the BRICS Countries, 6(4) BRICS Law Journal 95 (2019). https://doi.org/10.21684/2412-2343-2019-6-4-95-113
22. Von Bar С. & Drobnig U. The Interaction of Contract Law and Tort and Property Law in Europe (2009). https://doi.org/10.1515/9783866537316
23. Zharova A. & Lloyd I. An Examination of the Experience of Cryptocurrency Use in Russia: In Search of Better Practice, 34(6) Computer Law & Security Review 1300 (2018). https://doi.org/10.1016/j.clsr.2018.09.004
24. Василевская Л. Токен как новый объект гражданских прав: проблемы юридической квалификации цифрового права // Актуальные проблемы российского права. 2019. № 5. С. 111–119 [Vasilevskaya L. Token as aNew Civil Right Object: Issues of Legal Classification of Digital Law, 5 Advanced Topics of Russian Law 111 (2019)].
25. Генкин А.С., Михеев А. Блокчейн. Как это работает ичто ждет нас завтра [Genkin A. & Mikheyev A. Blockchains: How It Works and What Awaits Us Tomorrow] (2018).
26. Кикоть В. Современные тенденции и противоречия учения о праве собственности в развитых капиталистических странах: научно-аналитический обзор // Актуальные проблемы современного буржуазного гражданского права: сборник научно-аналитических работ [Kikot V. Modern Tendencies and Contradictions in the Doctrine of Property Rights in Capitalist Countries: Scientific and Analytical Review, in Advanced Topics of Modern Bourgeois Civil Law: A Collection of Scientific and Analytical Works] 38 (1983).
27. Ла Диега Г.Н. Блокчейн, смарт-контракты и авторское право // Труды ИГП РАН. 2019. № 14(3). С. 9–48 [La Diega G.N. Blockchain, Smart Contracts, and Copyright Law, 14(3) Proceedings of the Institute of State and Law of the RAS 9 (2019)].
28. Михеева Л. Цифровые активы в системе объектов гражданских прав // Закон. 2018. № 5. С. 16–30 [Mikheyeva L. Digital Assets in the System of Objects of Civil Law, 5 Law 16 (2018)].
29. Новоселова Л., Полежаев О. Оправовом режиме объектов гражданских прав, выраженных в цифровых активах // Закон. 2020. № 11. С. 165–172 [Novoselova L. & Polezhaev O. On the Legal Regime of Objects of Civil Law Expressed in Digital Assets, 11 Law 165 (2020)].
30. Новоселова Л., Полежаев О. Цифровые знаки как объекты гражданских прав // Предпринимательское право. 2019. № 4. С. 3–13 [Novoselova L. & Polezhaev O. Digital Signs as Objects of Civil Law, 4 Business Law 3 (2019)].
31. Саженов A. Криптовалюты: дематериализация категории вещей вгражданском праве // Закон. 2018. № 9. С. 106–121 [Sazhenov A. Cryptocurrencies: Dematerialising the Category of Things in Civil Law, 9 Law 106 (2018)].
Review
For citations:
Efimova L., Sizemova О., Chub D. Digital Financial Assets: Concept and Legal Nature. BRICS Law Journal. 2024;11(1):32-57. https://doi.org/10.21684/2412-2343-2024-11-1-32-57
Views:
1065
Email this article 