LEGAL REGULATION OF GAMBLING WITH THE USE OF VIRTUAL ASSETS
Abstract
This study examines the legal regulation of gambling with the use of virtual assets. The author concludes that a condition for conducting gambling with virtual assets as a prize or as a bet is that there are no prohibitions in the legislation on the use of virtual assets for payment purposes or as an exchange for property (goods), works (services). In light of the contradictions between Part 7 of Article 4 of the Law of Ukraine "On Virtual Assets" and the EU Regulation on Markets in Crypto-Assets Regulation (MiCA) regarding the use of virtual assets for payment purposes, it is justified to exclude national legislation provisions that prohibit such use of virtual assets in Ukraine. The study suggests that businesses engaged in organizing and conducting gambling face additional obligations due to compliance with relevant legislation in the field of virtual assets (as per the Law of Ukraine "On Virtual Assets") and gambling activities (as per the Law of Ukraine "On State Regulation of Activities Related to Organising and Conducting Gambling"). These obligations are specific to the industry and must be taken into account. Based on the provided study, to ensure legal certainty and align national legislation with the recommendations of the Financial Action Task Force (FATF), it is proposed to amend clause 8 of part 1 of Article 1 of the Law of Ukraine "On Virtual Assets". The proposed amendment will state that “Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset” are activities related to the circulation of virtual assets that fall under the responsibility of service providers (VASP). A promising area for further research could be the taxation of income from winning virtual assets in gambling.
References
2. Best Bitcoin Casino Sites: Top Bitcoin Casinos Ranked by BTC Games, Bonuses, and More. The Mercury News: вебсайт. URL: https://www.mercurynews.com/2021/09/17/10-best-bitcoincasinos-and-cryptocurrency-gambling-sites/ (дата звернення: 24.11.2023).
3. Best Best Crypto & Bitcoin Casino Sites For Players in Ukraine in 2023. CoinGambling: вебсайт. URL: https://coingambling.info/news/best-cryptobitcoin-casino-sites-for-players-in-ukraine/ (дата звернення: 24.11.2023).
4. Gore A. An assessment of AML risks linked to accepting crypto-payments in the gambling sector (A regulator’s guide). University of Nevada, Las Vegas (UNLV), International Center for Gaming Regulation (“ICGR”). 2023. URL: https://www.unlv.edu/sites/default/files/media/document/2023-08/ICGRResearch-AML-Crypto-in-Gaming-Sector.pdf (дата звернення: 24.11.2023).
5. Думчиков М.О. Способи легалізації (відмивання) майна, одержаного злочинним шляхом у кіберпросторі. Аналітично-порівняльне правознавство. 2022. №5. С. 330–334. DOI: https://doi.org/10.24144/2788-6018.2022.05.61 (дата звернення: 24.11.2023).
6. Brown VII S. Gambling on the Blockchain: How the Unlawful Internet Gambling Enforcement Act Has Opened the Door for Offshore Crypto Casinos. Vanderbilt Journal of Entertainment and Technology Law. 2022. Vol. 24. Issue 3. С. 535–559. URL: https://scholarship.law.vanderbilt.edu/jetlaw/vol24/iss3/3(дата звернення: 24.11.2023).
7. C. White. Betting on Blockchain. Colorado Technology Law Journal. 2018. vol. 17, С. 421– 441. URL: https://ctlj.colorado.edu/wp-content/uploads/2019/11/9-White-9.10.19-final.pdf (дата звернення: 24.11.2023).
8. Topps А. Place Your Bets: The Legal Integration of Sports Betting with Cryptocurrency. UNH Sports Law Review. 2023. Vol. 2. Issue 1, Article 5. URL: https://scholars.unh.edu/unhslr/vol2/iss1/5 (дата звернення: 24.11.2023).
9. Кузьменко О. В., Бойко А. О., Доценко Т. В. Ризик легалізації коштів клієнтом банку від азартних ігор, що проводяться в мережі Інтернет: підходи до вимірювання. Вісник Сумського державного університету. Серія Економіка. 2022. № 3. С. 31−41. DOI: https://doi.org/10.21272/1817-9215.2022.3-3 (дата звернення: 24.11.2023).
10. Гудіма Т., Устименко В., Джабраілов Р., Черних О. Особливості правового регулювання обігу віртуальних активів в Україні: де-факто vs де-юре. Financial and Credit Activity Problems of Theory and Practice. 2022. Vol. 5. № 46. P. 137–148. https://doi.org/10.55643/fcaptp.5.46.2022.3844 (дата звернення: 24.11.2023).
11. Віртуальні активи в законі: В Україні представлений довгоочікуваний документ для запуску ринку. Національна комісія з цінних паперів та фондового ринку: офіційний вебсайт. URL: https://www.nssmc.gov.ua/virtualni-aktyvy-v-zakoni-vukraini-predstavlenyi-dovhoochikuvanyi-dokumentdlia-zapusku-rynku/ (дата звернення: 24.11.2023).
12. 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) № 1093/2010 and (EU) № 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937. Офіційний вебсайт законодавтсва Європейського Союзу. URL: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1114 (дата звернення: 24.11.2023).
13. Sirenko N., Dubinina M., Melnyk O., Bodnar O., Luhova O. Current Status and Regulation of the Digital Money Market in Ukraine. Econ. Aff. 2023. 68 (Special Issue). С. 955–961. URL: http://ndpublisher.in/admin/issues/EAv68n2sz18.pdf (дата звернення: 24.11.2023).
14. Chanda S., Choudhary A., Shah V., Gupta S. Postulating Gambling and Betting Laws for The New Era: Unearthing A Subterranean Prelim. Tongji Daxue Xuebao/Journal of Tongji University. 2023. № 26. C. 72–88. URL: https://www.researchgate.net/publication/374477052_POSTULATING_ G A M B L I N G _ A N D _ B E T T I N G _ L AW S _ F O R _ T H E _ N E W _ E R A _ U N E A RT H I N G _ A _ SUBTERRANEAN_PRELIM (дата звернення: 24.11.2023).
15. FATF. Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers. 2019. Paris. URL: www.fatf-gafi.org/publications/fatfrecommendations/documents/Guidance-RBAvirtual-assets.html (дата звернення: 24.11.2023).
16. Chernykh O. S. Rights Of Consumers Of Financial Services. Controversial Legal Regulation Of Virtual Assets (Cryptoassets) In The Legislation Of The European Union, Great Britain And Ukraine. International scientific conference «European potential for the development of legal science, legislation and law enforcement practice»: conference proceedings (August 2–3, 2023, Wloclawek, the Republic of Poland). Riga, Latvia: «Baltija Publishing», 2023. C. 65–68. DOI: https://doi.org/10.30525/978-9934-26-334-7-15 (дата звернення: 24.11.2023).
