Legal Issues in Cryptocurrency

Sapovadia, Vrajlal K.

doi:10.1016/b978-0-12-802117-0.00013-8

Cited by 20 publications

(10 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…We note that in the case of the Blockchain Transaction Network, rather than considering shortest paths between all pairs of nodes, we begin with a set of known nodes that are so-called 'exchanges,' which convert between cryptocurrency and fiat currency. This choice was made because exchanges inherently know the identities of their neighbors due to legal vii policies they have in place to prevent money laundering [24]. Moreover, exchanges are the hubs of the Blockchain Transaction Network [17] and thus serve as most likely initial targets for investigators (for more on this choice, see SI).…”

Section: Resultsmentioning

confidence: 99%

“…The exchanges have many more transactions than a typical consumer as they essentially serve as gatekeepers for their respective currencies. More importantly, nearly all of these exchanges now have know-your-customer (KYC) policies wherein they require passport information and other identifying information about their consumers [24]. This means that transactions with an exchange inherently involve sharing identifiable information.…”

Section: Exchanges In the Blockchain Networkmentioning

confidence: 99%

See 1 more Smart Citation

Percolation framework reveals limits of privacy in Conspiracy, Dark Web, and Blockchain networks

Shekhtman¹,

Sela²,

Havlin³

2020

Preprint

View full text Add to dashboard Cite

We consider the privacy of interactions between individuals in a network. For many networks, while nodes are anonymous to outside observers, the existence of a link between individuals implies the possibility of one node revealing identifying information about its neighbor. Moreover, while the identities of the accounts are likely hidden to an observer, the network of interaction between two anonymous accounts is often available. For example, in blockchain cryptocurrencies, transactions between two anonymous accounts are published openly. Here we consider what happens if one (or more) parties in such a network are deanonymized by an outside identity. These compromised individuals could leak information about others with whom they interacted, which could then cascade to more and more nodes' information being revealed. We use a percolation framework to analyze the scenario outlined above and show for different likelihoods of individuals possessing information on their counter-parties, the fraction of accounts that can be identified and the idealized minimum number of steps from a deanonymized node to an anonymous node (a measure of the effort required to deanonymize that individual). We further develop a greedy algorithm to estimate the actual number of steps that will be needed to identify a particular node based on the noisy information available to the attacker. We apply our framework to three real-world networks:(1) a blockchain transaction network, (2) a network of interactions on the dark web, and (3) a political conspiracy network. We find that in all three networks, beginning from one compromised individual, it is possible to deanonymize a significant fraction of the network (> 50%) within less than 5 steps. Overall these results provide guidelines for investigators seeking to identify actors in anonymous networks, as well as for users seeking to maintain their privacy.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Exchanges In the Blockchain Networkmentioning

confidence: 99%

Percolation framework reveals limits of privacy in Conspiracy, Dark Web, and Blockchain networks

Shekhtman¹,

Sela²,

Havlin³

2020

Preprint

View full text Add to dashboard Cite

show abstract

“…Akins et al [67] discussed income taxation of cryptocurrency transactions, such as Bitcoins, when used for purchases with monetary value. Sapovadia [158] discussed the legal issues in cryptocurrencies that are similar to those of foreign currencies. Emelianova and Dementyev [159] argued for a unified supranational legal act for cryptocurrencies, similar to the European Union (EU) directives.…”

Section: Open Research Problemsmentioning

confidence: 99%

Blockchain as privacy and security solution for smart environments: A Survey

Ebrahim¹,

Hafid²,

Elie³

2022

Preprint

View full text Add to dashboard Cite

Blockchain was always associated with Bitcoin, cryptocurrencies, and digital asset trading. However, the benefits of Blockchain are far beyond that. It has been recently used to support and augment many other technologies, including the Internet-of-Things (IoT). IoT, with the help of Blockchain, paves the way for futuristic smart environments, like smart homes, smart transportation, smart energy trading, smart industries, smart supply chains, and more. To enable these smart environments, IoT devices, machines, appliances, and vehicles, will need to intercommunicate without the need for a centralized trusted party. Blockchain can replace third trusted parties by providing secure means of decentralization in such trustless environments. They also provide security enforcement, privacy assurance, authentication, and other important features to IoT ecosystems. Besides the benefits of Blockchain-IoT integration for smart environments, other technologies also have important features and benefits that attracted the research community. Software-Defined Networking (SDN), Fog, Edge, and Cloud Computing technologies, for example, play an important role in enabling realistic IoT applications. Moreover, the integration of Machine Learning and Artificial Intelligence (AI) algorithms provides smart, dynamic, and autonomous decisionmaking capabilities for IoT devices in smart environments. To push the research further in this domain, we provide in this paper a comprehensive survey that includes state-of-the-art technological integration, challenges, and solutions for smart environments, and the role of Blockchain and IoT technologies as the building blocks of such smart environments. We also demonstrate how the level of integration between these technologies has increased over the years, which brings us closer to the futuristic view of smart environments. We further discuss the current need to provide general-purpose Blockchain platforms that can adapt to different design requirements of different applications and solutions. Finally, we provide a simplified architecture of futuristic smart environments that integrates all these technologies, showing the advantage of such integration.

show abstract

“…While the number of the existing studies is rising, the Bitcoin literature is still at the early stage of development. Current research is mainly focused on the issues that have not yet been solved, such as the legal aspects of Bitcoin's functioning (Sapovadia, 2015;Plassaras, 2013;Nian, Chuen, 2015;Levin, O'Brien, Zuberi, 2015;Lim, 2015, Marian, 2015, taxation problems (Bal, 2015;Roberts, 2017;Marian, 2013) or the financing of illegal activities (Saito, 2015;Choo, 2015;Kossov, Dykes, 2018).…”

Section: Earlier Studies On Bitcoinmentioning

confidence: 99%

Bitcoin as a New Currency

Brzeszczyński

Gajdka

Schabek

2020

Folia Oeconomica Stetinensia

View full text Add to dashboard Cite

Research background: Bitcoin is the most popular financial instrument within the new cryptocurrencies class, which emerged in the wake of the financial crisis of 2007/2008. Purpose: The purpose of this paper is to provide an analysis of Bitcoin from the perspective of the Polish market investor. More specifically, the aim of the empirical research presented in this study has been twofold: (1) comparison of Bitcoin with other currencies using returns and risk captured by the standard deviation of returns and (2) assessment of the sensitivity of the BTC/PLN exchange rate to the NBP’s monetary policy announcements. Results: Bitcoin appears to be weakly related to other currency exchange rates against the Polish zloty and the monetary policy announcements of the National Bank of Poland (NBP) have, effectively, no influence on the determination of the BTC/PLN exchange rate. Novelty: We discuss extensively the Bitcoin as a new asset on the financial market and we present the investigation of the BTC/PLN reactions to the monetary policy announcements in Poland, which is a novel analysis for this instrument using the Polish market data.

show abstract

Legal Issues in Cryptocurrency

Cited by 20 publications

References 1 publication

Percolation framework reveals limits of privacy in Conspiracy, Dark Web, and Blockchain networks

Percolation framework reveals limits of privacy in Conspiracy, Dark Web, and Blockchain networks

Blockchain as privacy and security solution for smart environments: A Survey

Bitcoin as a New Currency

Contact Info

Product

Resources

About