Legal Basis of the Bitbon System

The opinion of the National Academy of Legal Sciences of Ukraine, EDRPOU 00065028, at the request of SIMCORD LLC, EDRPOU 37657823, on conducting the scientific and legal analysis of the Bitbon System’s functioning, which also includes the analysis of the subject-object composition of components and types of activities in the Bitbon System[i], indicates that:

  • The Bitbon System, being a platform based on the distributed ledger technology[i] (blockchain[i]), provides its Users[i] with access to the services of the Bitbon System by using the Bitbon[i] digital asset for equal exchange of Bon[i] and Projectbon[i] digital assets, which are derivative of values[i], that include property, products, rights (property/non-property), services and works without intermediaries and money, as well as with the ability to conduct specific types of activities in the Bitbon System, in particular, mining and Contributing[i], in accordance with the terms and conditions specified in the Bitbon Protocol[i], Bitbon System Public Contract[i] as well as Bon[i] and Projectbon[i] Protocols of specific projects.
  • The Bitbon digital asset is the regulator of legal relations between Bitbon System Users, while Bon and Projectbon digital assets are the regulators of legal relations between the owner of a specific Bon and/or Projectbon digital asset and the owner of a specific value that the specific Bon or Projectbon derives from. Such legal relations fall into the category of law of obligations and are recognized by all Bitbon System Users.
  • The use of the Bitbon System and the Bitbon digital asset does not contradict the current legislations of Ukraine, the European Union, the USA, the Russian Federation and the Republic of Kazakhstan, as well as the regulations of international law.
  • The use of the Bon and/or Projectbon digital assets also does not contradict the current legislations of Ukraine, the European Union, the USA, the Russian Federation and the Republic of Kazakhstan, as well as the regulations of international law on condition that the use of the value, which the specific Bon or Projectbon derives from, is not forbidden.
  • By their nature, all digital assets of the Bitbon System[i] are information resources[i] which is why they can be considered as intangible assets (IA) for accounting purposes. They must be recorded in accounting documentation in accordance with the International Financial Reporting Standards (IFRS) 38 “Intangible Assets” dated January 1, 2012.
  • The Bitbon System envisions mechanisms for compliance with the Anti-Money Laundering Provisions (AML/KYC) and Privacy Policy. The existing Policies of the Bitbon System are developed according to the General Data Protection Regulation (GDPR), the 5th Anti-Money Laundering Directive (AMLD5), as well as taking into account the requirements of the Know Your Customer (KYC) Policy.

Based on the above-mentioned, we can state that the operation of the Bitbon System, as well as the activity of Bitbon System Users with digital assets of the Bitbon System, is conducted within the current international legal field and does not require the creation and introduction of additional norms of legal regulation from governments.

You can read the full version of the Scientific and Legal Opinion “Legal Nature of the Bitbon System’s Functioning” by following the link: https://bitbon-site.s3.eu-central-1.amazonaws.com/pdf/nauchno-pravovoe-zaklyuchenie-pravovaya-priroda-funkcionirovaniya-sistemy-bitbon.pdf