Prospects for introducing the concept of “digital things” and “digital content”: expanding the scope of regulation of virtual assets

• Authors: Serhii Hrytsai

Abstracts

EN

The lack of a legal framework did not prevent Ukraine from ranking third among the world leaders in the use of cryptocurrencies in 2022. In terms of the sum of indicators, Ukraine is ahead of such tech giants as the United States (5th place), China (10th place), and the United Kingdom (17th place). The purpose of the study is to identify the underlying principles for the introduction of a new legal definition of “digital things” and “digital content” and their prospects for use, which are laid down in draft laws No. 6447 and No. 6576, as initiatives that are satellites to the relevant law on virtual assets. As a reminder, the Parliament of Ukraine adopted the Law of Ukraine “On Virtual Assets” No. 2074-IX on February 17, 2022. Since the adoption of Law 2074 by the Parliament of Ukraine on February 17, 2022 and until the period of 2023, significant events have taken place. They have significantly affected the plans of the Parliament of Ukraine to launch mandatory amendments to the Tax Code of Ukraine provided for in the Draft Law 7150 and simultaneously enact Law 2074 from October 1, 2022. The study was based on the analysis of the legislative framework of Ukraine, the European Union and other international acts, including those ratified by the Parliament of Ukraine. The study has led to a number of conclusions. Draft Law No. 6447 introduces the definition of a “digital thing” that is in circulation only in digital form; these include virtual assets, digital content, online accounts, money and securities that exist exclusively in digital form. Its adoption will help potential consumers to protect their rights to digital content, online accounts, virtual assets, even money and securities that exist exclusively in digital form. Comparing the concepts of “digital thing” and “digital content” proposed by draft laws No. 6447 and No. 6576, we found signs of legal tautology in determining what is primary and what is secondary. The addition of the words “digital content” to Article 177 of the Civil Code and the expansion of the concept of a thing to “material and digital things” is at least more declarative.

Keywords

EN

fintech; virtual assets; cryptocurrency; bitcoin; electronic money; money surrogate

• Publisher: Wydawnictwo Adam Marszałek
• Journal: Krakowskie Studia Małopolskie
• Year: 2023
• Volume: 2(38)
• Pages: 7-25

Dates

published

2023

Contributors

author

Serhii Hrytsai

• Institute of Law and Social Relations of the Open International University of Human Development “Ukraine”

• https://orcid.org/0000000300516149

References

• Association Agreement. (2023), European Integration Portal, https://euua.kmu.gov.ua/en/association-agreement.
• Chainalysis T., Bitcoin Gains by Country: Who Benefited the Most from the 2020 Boom?, Chainalysis. https://blog.chainalysis.com/reports/ bitcoin-gains-by-country-2020/.
• Chainalysis T., 2022 Global Cryptocurrency Adoption Index, Chainalysis, https://blog.chainalysis.com/reports/2022-global-crypto-adoptionindex/.
• Digital finance: Agreement reached on European crypto-assets regulation (MiCA), European Counsil, https://www.consilium.europa.eu/en/press/press-releases/2022/06/30/digital-finance-agreementreached-on-european-crypto-assets-regulation-mica/.
• Kabinet Ministriv Ukrainy – Profesiinyi dialoh: NKTsPFR stvoryla konsultatsiinu radu z pytan rehuliuvannia virtualnykh aktyviv [Cabinet of Ministers of Ukraine – Professional dialogue: NKCPFR has created an advisory board on the regulation of virtual assets], 2022, Uriadovyi portal, https://www.kmu.gov.ua/news/profesijnij-dialog-nkcpfr-stvorila-konsultacijnu-radu-z-pitan-regulyuvannya-virtualnih-aktiviv.
• Kabinet Ministriv Ukrainy – Vidbulos pershe zasidannia Konsultatsiinoi rady z pytan rehuliuvannia virtualnykh aktyviv [The Cabinet of Ministers of Ukraine – The first meeting of the Advisory Council on Regulation of Virtual Assets was held], 2022, Uriadovyi portal, https://www.kmu. gov.ua/news/vidbulos-pershe-zasidannia-konsultatsiinoi-rady-z-pytan-rehuliuvannia-virtualnykh-aktyviv.
• Konsultatsiina rada z pytan rehuliuvannia virtualnykh aktyviv prystupyla do rozrobky zmin v profilnyi zakon [The Advisory Council on the Regulation of Virtual Assets has started drafting changes to the relevant law], 2022, Natsionalna komisiia z tsinnykh paperiv ta fondovoho rynku [National Securities and Stock Market Commission], https://www.nssmc.gov.ua/konsultatsiina-rada-z-pytan-rehuliuvannia-virtualnykh-aktyviv-prystupyla-do-rozrobky-zmin-v-profilnyi-zakon/.
• Marszałek-Kawa J., Plecka D., Daśko N. (red), Dictionary of Public Institutions, Publishing House “Helvetica”, Odessa 2021.
• Nam neobkhidno nehaino zavershyty lehalizatsiiu virtualnykh aktyviv v Ukraini – vitse-premier Fedorov [We need to immediately complete the legalization of virtual assets in Ukraine – Deputy Prime Minister Fedorov], Interfaks-Ukraina. https://interfax.com.ua/news/interview/875292.html.
• Oliinyk, D.I., Obigh virtualjnykh aktyviv v Ukrajini [Circulation of virtual assets in Ukraine]. Natsionalnyi instytut stratehichnykh doslidzhen [National Institute of Strategic Studies]. http://niss.gov.ua/doslidzhennya/ekonomika/obih-virtualnykh-aktyviv-v-ukrayini.
• Podatkovyi kodeks Ukrainy [Tax Code of Ukraine], Pub. L. No. 2755-VI (2010), https://zakon.rada.gov.ua/go/2755-17.
• Pro Uriadovyi ofis koordynatsii yevropeiskoi ta yevroatlantychnoi intehratsii [About the Government Office for the Coordination of European and Euro-Atlantic Integration], Pub. L. No. 759, 2017, https://zakon.rada.gov.ua/go/759-2017-%D0%BF.
• Pro virtualni aktyvy [About virtual assets], Pub. L. No. 2074-IX, 2022, https://zakon.rada.gov.ua/go/2074-20.
• Proekt Zakonu pro tsyfrovyi kontent ta tsyfrovi posluhy [Draft Law on Digital Content and Digital Services], no. 6576, Verkhovna Rada Ukrainy, 2022, http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=73687.
• Proekt Zakonu Pro vnesennia zmin do Podatkovoho kodeksu Ukrainy shchodo opodatkuvannia operatsii z virtualnymy aktyvamy [Draft Law on Amendments to the Tax Code of Ukraine on Taxation of Transactions with Virtual Assets], no. 7150, Verkhovna Rada Ukrainy, 2022, https://itd.rada.gov.ua/billInfo/Bills/Card/39211.
• Proekt Zakonu pro vnesennia zmin ta dopovnen do Tsyvilnoho kodeksu Ukrainy, spriamovanykh na rozshyrennia kola obiektiv tsyvilnykh prav [Draft Law on Amendments and Additions to the Civil Code of Ukraine aimed at expanding the range of civil rights objects], no. 6447, Verkhovna Rada Ukrainy, 2021, http://w1.c1.rada.gov.ua/pls/ zweb2/webproc4_1?pf3511=73472.
• Proposal for a regulation of the European parliament and of the council on markets in crypto-assets, and amending directive (EU) 2019/1937, Pub. L. No. 13198/22, 380, 2022, https://data.consilium.europa.eu/doc/document/ST-13198-2022-INIT/en/pdf.
• Propozytsii Prezydenta Ukrainy do Zakonu “Pro virtualni aktyvy” [Proposals of the President of Ukraine to the Law “On Virtual Assets”], 2020, https://itd.rada.gov.ua/billInfo/Bills/Card/2698.
• Rada skhvalyla dva zakonoproiekty pro lehalizatsiiu virtualnykh aktyviv [The Council approved two draft laws on the legalization of virtual assets], BiznesTsenzor. https://biz.censor.net/news/3393140/rada_shvalyla_dva_zakonoproyekty_pro_leglegalizats_virtualnyh_aktyviv.
• Telegram: Contact @yzheleznyak, I vazhlyvi zminy u tomu chysli dlja rozvytku kryptoaktyviv v Ukrajini [And important changes, including for the development of cryptoassets in Ukraine]. https://t.me/yzheleznyak/3274.
• Uhoda pro asotsiatsiiu mizh Ukrainoiu, z odniiei storony, ta Yevropeiskym Soiuzom, Yevropeiskym spivtovarystvom z atomnoi enerhii i yikhnimy derzhavamy-chlenamy, z inshoi storony [Association Agreement between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and their member states, on the other hand], Pub. L. No. 984_011, 2014, https://zakon.rada.gov.ua/go/984_011.
• V Ofisi prezydenta zaklykaly skontsentruvaty zusyllia dlia zapusku rynku kryptovaliut v Ukraini [The President’s Office called for concentrated efforts to launch a cryptocurrency market in Ukraine], ForkLog, https://forklog.com.ua/v-ofisi-prezydenta-zaklykaly-skontsentruvatyzusyllya-dlya-zapusku-rynku-kryptovalyut-v-ukrayini/.
• Vidbulos pershe zasidannia Konsultatsiinoi rady z pytan rehuliuvannia virtualnykh aktyviv [The first meeting of the Advisory Council on the Regulation of Virtual Assets was held], 2022, Natsionalna komisiia z tsinnykh paperiv ta fondovoho rynku [National Securities and Stock Market Commission], https://www.nssmc.gov.ua/vidbulos-pershezasidannia-konsultatsiinoi-rady-z-pytan-rehuliuvannia-virtualnykhaktyviv/.
• Yaki zakony budut diiaty dlia yevropeiskykh kryptovaliutnykh kompanii cherez rik? [What laws will apply to European cryptocurrency companies in a year?], GagarinNews, https://gagarin.news/ua/news/how-micaregulation-will-change-the-european-crypto-sphere/.

Identifiers

DOI

10.15804/ksm20230201

Biblioteka Nauki

10487432