Course Overview

In recent years, there has been a rapid development of technology enabling the existence of various forms of crypto-assets, with an increasing number of individuals and legal entities becoming involved in this sector in one way or another. Legislators have struggled to keep pace with such swift technological advancements and the proliferation of crypto-assets, leaving many legal issues concerning crypto-assets unresolved. Crypto-assets and the associated unresolved legal questions have gained significant importance in recent years, not only within the European legal framework but also on a global scale. The topic under discussion is inherently global in nature, and the legal solutions to pressing issues are generally universal. In the EU, specific regulation addressing certain aspects of crypto-assets has been adopted, ensuring uniform rules across all member states. However, despite this EU regulation, many forms and methods of using crypto-assets remain outside the scope of legal regulation. During the course European regulation of crypto-assets, students will become familiar with the current state of crypto-asset regulation and the trends toward further regulatory development.

The course begins with a brief introduction to blockchain technology and key terminology. Given the highly technological nature of the subject, the introductory part will also include practical demonstrations of key operations related to crypto-assets. In the second part, the course will examine various pressing issues regarding crypto-assets in connection with private and commercial law. Topics will include, for example, the concept of ownership of crypto-assets, the treatment of crypto-assets in marital property regimes, and the inheritance of crypto-assets. The third part of the course will explore different types of crypto-assets and their legal classifications. While European regulation addresses some types of crypto-assets, many remain outside the scope of regulation in terms of their specific uses. In the fourth part, the course will address a new and specific form of collaboration among participants via smart contracts deployed on a public permissionless blockchain. This form of decentralized decision-making is commonly referred to as a Decentralized Autonomous Organization (DAO). The final, fifth part of the course will focus on the current regulation of crypto-asset markets in the EU. In the EU, there is now uniform regulation covering the issuance of crypto-assets, the operations of issuers and their supervision, the provision of services related to crypto-assets, and measures to prevent market abuse.

Learning Outcomes

The aim of the course is to provide students with an overview of the current state of regulation of crypto-assets, focusing on the regulation of those forms of crypto-assets that are either already regulated or where there is already a need for regulation. Students will be acquainted with current international regulation trends regarding crypto-assets. The course will give students some guidance when facing current law issues emerging using crypto-assets in practice.
Learning outcomes are knowledge and understanding of:
• terminology and practical applications
• legal issues of crypto-assets in private law
• different types of crypto-assets and their legal status
• regulation of corporate form in DAOs, investments and corporate governance in DAOs
• regulation of crypto-asset markets in European Union

Course Content

1.Part: Introduction
a.Basic information about blockchain technology
b.Key terminology
i.Public and private keys
ii.Custodial and non-custodial wallets
iii.Hardware and Software wallets
c.Practical examples and presentations
2.Part: Legal issues of crypto-assets in private law
a.Property Law
b.Law of obligations
c.Family Law
d.Inheritance Law
e.Insolvency Law

3.Part: Legal status of different types of crypto-assets
a.Asset-referenced tokens
b.Electronic money tokens
c.Utility tokens
d.Non-fungible tokens
4.Part: Decentralized autonomous organization (DAO)
a.Definition and purpose
b.Legal recognition and corporate form
c.Investments in DAOs
d.Transforming Governance with DAOs
e.Jurisdictional complexity

5.Part: Regulation of crypto-asset markets in European Union
a.Transparency and disclosure requirements for the issuance and admission to trading of crypto-assets
b.The authorisation and supervision of crypto-asset service providers and issuers of asset-referenced tokens and issuers of electronic money tokens
c.The operation, organisation and governance of issuers of asset-referenced tokens, issuers of electronic money tokens and crypto-asset service providers
d.Consumer protection rules for the issuance, trading, exchange and custody of crypto-assets
e.Measures to prevent market abuse to ensure the integrity of crypto-asset markets

Instructional Method

At the beginning of each part of the course, lectures will be delivered covering all the essential topics. Based on the students’ prior knowledge and feedback, the content of the lectures will be adjusted. Although prior knowledge of relevant law is beneficial, the course will also be tailored to accommodate students from other fields by providing all the basic legal knowledge needed to understand the specific regulation of crypto-assets. In addition to the lectures, students will be required to prepare presentations and deliver them orally in the classroom. Classroom discussions will be organized on specific topics.

Required Course Materials

All the necessary information will be provided through lectures, presentations, and classroom discussions. For those seeking additional information, here is a list of further reading:
1. Andrea Bonomi (ed.), Matthias Lehmann (ed.), and Shaheeza Lalani (ed.), Blockchain and Private International Law. International and Comparative Business Law and Public Policy, Volume: 4, 2023, Available at: Blockchain and Private International Law | Brill (only specific chapters)
2. Lehmann, Matthias, MiCAR – Gold Standard or Regulatory Poison for the Crypto Industry? (January 12, 2024). European Banking Institute Working Paper Series 160, Available at SSRN: https://ssrn.com/abstract=4692743 or http://dx.doi.org/10.2139/ssrn.4692743
3. Allen, Jason G and Wells, Henry and Mauer, Marco, Cryptoassets in Private Law: Emerging Trends and Open Questions from the First 10 Years (August 1, 2022). SMU Centre for AI & Data Governance Research Paper No. 06/2022, Available at SSRN: https://ssrn.com/abstract=4206250 or http://dx.doi.org/10.2139/ssrn.4206250
4. Bruce, Kara J. and Odinet, Christopher K. and Tosato, Andrea, The Private Law of Stablecoins (August 16, 2022). Arizona State Law Journal, Forthcoming, U Iowa Legal Studies Research Paper No. 2022-22, Available at SSRN: https://ssrn.com/abstract=4191646 or http://dx.doi.org/10.2139/ssrn.4191646
5. Fairfield, Joshua, Tokenized: The Law of Non-Fungible Tokens and Unique Digital Property (April 6, 2021). Indiana Law Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3821102
6. Beyer, Gerry W. and Nipp, Kerri G., Cyber Estate Planning and Administration (March 29, 2022). Available at SSRN: https://ssrn.com/abstract=2166422 or http://dx.doi.org/10.2139/ssrn.2166422
7. Lee, Edward, NFTs as Decentralized Intellectual Property (February 1, 2022). University of Illinois Law Review, Vol. 2023, 2023, Available at SSRN: https://ssrn.com/abstract=4023736 or http://dx.doi.org/10.2139/ssrn.4023736
8. Tse, Nathan. (2020). Decentralised Autonomous Organisations and the Corporate Form. Victoria University of Wellington Law Review, 51(2), 313–356. https://doi.org/10.26686/vuwlr.v51i2.6573
9. Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937. Regulation - 2023/1114 - EN - EUR-Lex

Assessment

Students will be assessed based on the following:
• Written exam – 50% of the grade
• Individual assignment (oral presentation on pressing topics related to crypto-assets in their country) – 30% of the grade
• Participation in classroom discussions – 20% of the grade