#3. Cryptocurrency and the Ways of Electronic Payments or How Not to Feel Like an Analogue Device in the Digital World

Dear readers,

I invite you to visit the pages of our summer edition of “Korpus Prava.Analytics”. This issue is dedicated to cryptocurrency and electronic payment instruments.

We live at the time of rapid development of modern information technologies and financial markets, which have changed the way economies and financial systems function and the way businesses work. There have been several new and innovative products which have led to developments in electronic commerce and electronic banking. As a result of these developments, we have faced a new kind of payment instrument, namely electronic money, which is covered in our issue by our leading lawyer Anna Senchenko.

Our lawyer Roman Moskovskikh will elaborate on the topic of electronic money and analyze the legal nature of cryptocurrency in the modern world. Why has cryptocurrency become so popular? What fundamental legal principles lie at the basis of it? Cryptocurrency is treated differently in each country, and our expert will outline the situation in Russia.

Lately we have frequently addressed inheritance-related topics and it is not a mere coincidence. Once becoming very important, the matter of inheritance transfer to successors has immediately turned into a problem. This issue will give you an opportunity to read the article by our Swiss partner Ariel Sergio Goekmen on the transfer of family business and inheritance-related problems, as well as the article by our managing director Irina Kocherginskaya on a similar topic.

This issue continues to introduce novelties in legislation, this time on offshore jurisdiction. New requirements on maintaining the register of directors, collecting information and beneficiaries have been introduced. Our lawyer Irina Otrokhova examines which jurisdictions were affected by changes, where they have become more severe and updated.

In our up-to-date world of information technologies it’s very important to stay connected, so we’re always glad to get feedback from you. Contact us in any way convenient for you.

See you next time!

Artem Paleev
Managing Partner
Korpus Prava

CONTENTS

Anna Senchenko, LL. M.

Leading Lawyer

Tax and Legal Practice

Korpus Prava (Russia)

E-money Is a New Cash

In the last two-three decades, innovations in information technology and in financial markets have changed the way economies and financial systems function and the way businesses work.

Svetlana Sviridenkova

Deputy Director

Audit Practice

Korpus Prava (Russia)

“Controlled” Loan Interests

On entry into force of Article 269 of the Tax Code of the Russian Federation, interest rate setting became difficult for accountants. Meanwhile, legislators update the procedure for rate setting on an annual basis and create new criteria and reasons to exclude part of paid charges interest.

Irina Otrokhova

Chief Compliance Officer

Corporate Services

Korpus Prava (Cyprus)

I Spy With My Little Eye: Electronic Register of Beneficiaries in the Cayman Islands

Transparency tendencies continue to win over international corporate community, including offshore jurisdictions. There’s nothing new about the fact that certain offshore jurisdictions have already defined requirements on maintaining the register of directors, collecting information on shareholders and beneficiaries.

Dr Ariel Sergio Goekmen

Member of the Executive Board

Schroder & Co Bank AG, Zürich

Live Wires in the Family Enterprise

Probably the most successful way to resolve family business issues is to escalate to a mutually agreed third party, who should be benign but impartial - a person of respect and integrity. Such roles can be created unbeknownst to the holder of such a privileged position.

Irina Kocherginskaya, LL. M.

Managing Director

Tax and Legal Practice

Korpus Prava

Well-Being Comes Through Action, Not Through Prayer

Once becoming very important, the matter of inheritance transfer to one’s successors has immediately turned into a problem.

Arina Makarova

Ex-Legal Assistant

Tax and Legal Practice

Korpus Prava (Russia)

Payment Settlements With Electronic Money

Trade development, including via the Internet, led to the search of new faster and more efficient means of payment. Such means were discovered and implemented with the introduction of electronic non-cash payment and electronic money.

Roman Moskovskikh

Lawyer

Law and Tax

Korpus Prava (Russia)

Legal Status of Cryptocurrency in the World

The history of cryptocurrency in the world extends back less than 10 years, but the idea of potential replacement of existing traditional currencies (the so-called "fiat money") is already gaining popularity among progressive social classes.