Legal Nature of the Bitbon System

The legal nature of the Bitbon System[i] consists of three fundamental principles laid down in its concept:

1. Legal regulation of the Bitbon System digital assets[i].

  • The legal regulation of the Bitbon System digital assets is provided by the documents regulating the Bitbon System functioning.
  • The legal regulation model laid down into the Bitbon System fully complies with the existing international legislative standards and does not require new legislative initiatives.

2. The Bitbon System as an information system for accounting of digital assets and the formation of mutually beneficial economic and legal relations.

  • The Bitbon[i] digital asset, being an access token[i], gives the Bitbon System Users[i] the right of access to all the features and resources of the Bitbon System.
  • The Bitbon digital asset as a key component of the Bitbon System has the property of exchange value of all digital assets in the Bitbon System, which ensures the formation of mutually beneficial economic and legal relations between the Bitbon System Users.

3. The Right to the right[i] principle, which is based on the operation of the right to an information resource[i] that is derivative of the right[i] to a value, where the value itself remains in possession of its owner.

  • The Asset Digitization Procedure[i] is know-how of Simcord and allows the Bitbon System Users to exchange digital assets backed by the right to a value in a secure and equal manner.
  • The peculiarity of the Bitbon System digital assets lies in their backing, which is formed through the Asset Digitization Procedure and the Right to the right principle laid down in the Bitbon System.

The relations of the Bitbon System Entities[i] are established and implemented according to the rules and conditions of the Bitbon System Public Contract[i], and the legal regulation of the Bitbon System digital assets as objects of civil rights takes place exclusively in the legal field and, at the same time, ensures transparency of the processes taking place in the Bitbon System and interaction of all its components. The legal relations of the Bitbon System Entities are based on the possibility of exchanging digital assets between them through the mechanism used in the Bitbon System, thus, digital assets can be owned, used and managed according to the terms and conditions specified in the Protocols of such digital assets[i].

The uniqueness of the legal nature of the Bitbon System lies in the fact that this System is an information system due to the essence inherent in it. Since a digital asset is an information resource derivative of the right to a value and circulating in the distributed ledger in the form of a unique identifier, the Bitbon System itself as a system for the direct use of this type of information (digital assets) is an informational one. Through the circulation of digital assets, the Bitbon System provides its Participants[i] with information about the assets[i] that have undergone the Digitization Procedure and are registered in the System. Thus, when exchanging digital assets, the Bitbon System Participants exchange some kind of information in which they express a certain right to a value established by the owner of such value.

The particular importance of the Bitbon System digital assets lies in their backing by assets, which is formed through the Asset Digitization Procedure and the Right to the right principle laid down in the Bitbon System.

This principle means that, through the Asset Digitization Procedure (for assets such as property, goods, service, money, etc.), any Bitbon System User can create his/her own Bon[i] digital asset for safe and recorded transactions in the Bitbon System, as well as for the equal exchange of such digital assets between Users without intermediaries and money. This means that not assets are in circulation, but only the right of the owner of a digital asset to demand the owner of the asset to fulfill the obligations established by the owner of the asset.

During the Asset Digitization Procedure, when creating the Digital Asset Protocol, the Bitbon System User must, among other things, indicate in this document all the acceptable claims of the owner of the digital asset to him/her as the owner of the asset. In other words, when creating the Protocol of a specific digital asset, such a Bitbon System User independently determines the right to claim his/her own asset, as well as the conditions for the realization of said right. This may be a claim to property right, ownership right, right to use, etc.

It must be emphasized separately that it is possible to exercise the right of claim to an asset, as well as to transfer property rights to assets outside the Bitbon System based on agreements concluded by the property owner (asset owner) with another person (guarantor, attorney) according to the laws of the country, in whose jurisdiction these contractual relations are concluded, which guarantees state protection and ensures their implementation.

Thus, the Bitbon System provides its Users with the opportunity to fully utilize their assets through a transferable right, which is derivative of the right to such assets.