CEU Electronic Theses and Dissertations, 2022
| Author | Safarli, Mahammad |
|---|---|
| Title | Attachment and Perfection of the Security Interest over Cryptocurrencies: Possible Initiatives for Azerbaijani Law |
| Summary | Cryptocurrency is getting more and more attraction nowadays. We can observe that the number of people and businesses who hold cryptocurrencies increase day by day. The claimed trustworthy characteristics of the underlying blockchain technology makes the cryptocurrency appealing investment and a medium of exchange. Ever changing nature of the lending market, however, requires adaptability to the development of society and technology. In particular, holders of the cryptocurrency would want to raise finance without selling their cryptocurrencies. In such scenarios, crypto-based lending comes into play. This practice would also play a significant role for the small and medium sized enterprises who do not usually possess an adequate amount of real or personal property to mortgage or pledge. Thus, pledging of cryptocurrency sounds promising, however, it is paralleled with certain idiosyncratic legal issues that are focused upon in this thesis. In particular, first, the volatility of the value of the cryptocurrencies. Second, the dilemmas related to the requirements for attachment and perfection of security interests on crypto-assets. In particular, whether control, filing or a brand-new method of perfection is needed? As these issues are increasingly tackled by legal scholarship over the recent years, the thesis will try to summarize these positions and give a brief overview of the current practice of the crypto-collateral, from both academic and practical perspective. For this reason, the thesis will touch upon the technical details about how the blockchain technologies work and how current companies offering crypto lending, ensure the system works for both parties to the contract. The thesis compares crypto lending under the US system of secured transactions law, as one of the leading global systems, and Azerbaijani law, which will most likely face these challenges in the future. The central hypothesis is that although currently no crypto assets-related law is in force in Azerbaijan, by making these specific assets available as collateral through passing of an appropriate regulatory framework, economic gain could be generated. Azerbaijani law recognizes such traditional types of in rem security agreements as pledge and mortgage, it also gives a way for the parties to stipulate other types of collateral, as well. Thus, this thesis will analyze the possibility of using crypto-assets as collateral in Azerbaijani law and possible amendments thereto by comparing the legal scholarship, case law and industrial publications in USA and Azerbaijan. |
| Supervisor | Tajti Tibor |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2022/safarli_mahammad.pdf |
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