First Stage of Introducing the Concept of Digital Asset into the International Legal Field

Today, progressive and rapid development of the world is closely connected with the development and implementation of new blockchain-based products. Various types of digital obligations emerge increasingly. Their functioning is based on Blockchain, in particular, functioning of tokens and crypto currencies, whose variety of forms is massively chaotic (non-systemic) in nature.

Moreover, all types of tokens have their own set of properties, so they have limited capabilities and, based on their purpose and nature, perform different functions. Thus, creators of some crypto currencies and tokens began to call them “digital assets”. However, there is still no legal or scientific substantiation as various crypto instruments have not been differentiated yet. At the same time, their differentiation should take place in the legal field and should be carried out by experts in the area of digital economy.

Within the framework of official cooperation with the National Academy of Legal Sciences of Ukraine, Simcord has initiated development of the concept of Digital Asset and its introduction into the international legal field in order to specify the criteria and properties, which should be considered to define a particular crypto instrument as a Digital Asset or a crypto currency.

The specialists of Simcord and of the National Academy of Legal Sciences of Ukraine have started formulating the concept of Digital Asset, defining its legal nature and peculiarities of functioning in the digital space. The main goal of the above-mentioned activity is to create a kind of classifier for any crypto instrument with a whole complex of fundamental features. It means that in the near future the entire global community will receive a uniform test developed as part of this cooperation, which will make it possible to clearly identify whether or not the determined properties of any crypto instrument fully comply with the properties of the Digital Asset.

Thus, the concept of Digital Asset will be introduced into the international legal field, which, based on the properties of any crypto instrument, will allow defining such a crypto instrument as a Digital Asset or a crypto currency, as well as using it according to the classification adopted at the international level.