Digital Currencies  & Blockchain

Lecture 12

Economic & Legal Considerations of Cryptocurrencies


  • Legal Aspects and challenges in Crypto & Smart Contracts
  • ICOs, STOs, Airdrops,
  • KYC, AML, MiCA
  • Economic Considerations

What would you think that are the main legal challenges in crypto?

What is Bitcoin anyway?

Crypto Assets

  • Wide spectrum of Assets of different risk profile
    • and qualities
  • Stablecoins - FIAT backed, Crypto backed, Algorithmic
    • Tether vs Dai vs rDAI
  • In case of tokenized physical assets, what happens if the state in blockchain does not correspond with reality?
  • How to enforce it?
  • "Industrial" utilitization of public blockchain

Nie je Dai ako Dai


  • Tax/ Legal Treatment of Stocks vs Crypto stocks?
  • Who is responsible for the undesired app behaviour?

  • Is it really immutable?
  • Using DeFi via UI vs. Raw transactions ––> no signed disclaimer ––> different legal implications?
  • KYC / AML ? 


Smart Contracts


  • Is it Legally binding?
  • Who is responsible for the failure?
  • Code is Law?


  • What do you actually own?
  • Typically JPEGs stored at private server and could be made unavailable
  • How do you classify and regulate such a broad asset class?


Market in Crypto Assets

  • Crafted with ICOs in mind
  • What is actually in scope?
    • Virtual assets
    • NFTs? DeFi?
    • If not, are they outlawed?
  • Significance Thresholds (stablecoins) 
    • Too low, even when systemic risk absents
  • In Effect, MiCA could be a driver for decentralization as projects could not deal with all kinds of bureaucracy

Time for General Q&A


- Any Questions!

- What did you like about this course? or the subject of cryptocurrencies?


Thank you!

(Extended) Syllabus: