Abstract:

The article analyses the cross-border legal challenges arising from the use of digital money and crypto-assets, as well as the possible legal mechanisms for addressing them. The central thesis of the article is that the classical instruments of private international law remain relevant but are insufficient where a transaction is carried out through a distributed ledger, a smart contract, or a virtual asset service provider. The research examines the absence of a uniform legal standard for digital money, the cross-border nature of blockchain-based transactions, the uneven imple mentation of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) mechanisms, issues of legal liability in cybersecurity, and the regulatory challenges associated with central bank digital currencies and stablecoins. Particular attention is given to challenges relevant to Georgian law, including the supervision of virtual asset service providers and the coordination of financial regulation, data protection, and anti-money laundering mechanisms. The article con cludes that resolving legal conflicts in the field of digital money is not limited to determining the applicable law. It requires an interconnected assessment of legal classification, supervision, data protection, Anti-Money Laundering and Countering the Financing of Terrorism requirements, and financial stability. Accordingly, effective regulation should be based on a harmonized, risk based, and technologically appropriate legal framework.

 

Keywords:

Blockchain; regulatory harmonization; stablecoin; cybersecurity; cross-border payments; decentralized liability

Full PDF:

PDF