International Legal Perspective on Crypto-Related Crimes and Challenges of Liability in Decentralized Finance
DOI:
https://doi.org/10.59022/ijlp.609Keywords:
Decentralized Finance, Smart Contract Liability, International Financial Law, Regulatory Harmonization, Digital Asset Governance, Criminal Attribution, Blockchain RegulationAbstract
Decentralized finance systems manage vast assets without central authority, creating a borderless economy that defies traditional legal boundaries. While fostering innovation, this independence invites global criminal activities, as perpetrators exploit automated, anonymous smart contracts to evade detection. Current international legal frameworks remain ill-equipped to address the complexities of cross-border digital fraud or assign liability within immutable, machine-run protocols. This research examines the jurisdictional conflicts and attribution challenges inherent in decentralized financial systems. Utilizing a qualitative doctrinal analysis of recent legislative initiatives and international legal standards, this article evaluates the viability of a functional equivalence model for assigning criminal responsibility. The findings suggest that harmonizing global regulatory requirements is essential to bridge the gap between technical execution and legal accountability. This study proposes a framework that integrates human-led dispute resolution with automated transparency to ensure stability, protect market participants, and foster long-term confidence in the global digital economy.
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Copyright (c) 2026 Sabokhat Abdullaeva
This work is licensed under a Creative Commons Attribution 4.0 International License.
