Beyond financial regulation of crypto-asset wallet software: In search of secondary liability external link

Barbereau, T. & Bodó, B.
Computer Law & Security Review, vol. 49, num: 105829, 2023

Abstract

Since Bitcoin, the blockchain space considerably evolved. One crucial piece of software to interact with blockchains and hold private-public key pairs to distinct crypto-assets and securities are wallets. Wallet software can be offered by liable third-parties (‘custodians’) who hold certain rights over assets and transactions. As parties subject to financial regulation, they are to uphold Anti-money Laundering and Combating the Financing of Terrorist (AML/CFT) standards by undertaking Know-Your-Customer (KYC) checks on users of their services. In juxtaposition, wallet software can also be issued without the involvement of a liable third-party. As no KYC is performed and users have full ‘freedom to act’, such ‘non-custodial’ wallet software is popular in criminal undertakings. They are required to interact with peer-to-peer applications and organisations running on blockchains whose benefits are not the subject of this paper. To date, financial regulation fails to adequately address such wallet software because it presumes the existence of a registered, liable entity offering said software. As illustrated in the case of Tornado Cash, financial regulation fails to trace chains of secondary liability. Alas, the considered solution is a systematic surveillance of all transactions. Against this backdrop, this paper sets forth an alternative approach rooted in copyright law. Concepts that pertain to secondary liability prove of value to develop a flexible, principles-based approach to the regulation of non-custodial wallet software that accounts for both, infringing and non-infringing uses.

blockchain, Crypto-assets, decentralised finance, non-custodial wallet, Regulation, secondary liability

Bibtex

Article{nokey, title = {Beyond financial regulation of crypto-asset wallet software: In search of secondary liability}, author = {Barbereau, T. and Bodó, B.}, url = {https://www.sciencedirect.com/science/article/pii/S0267364923000390}, doi = {https://doi.org/10.1016/j.clsr.2023.105829}, year = {2023}, date = {2023-06-22}, journal = {Computer Law & Security Review}, volume = {49}, number = {105829}, pages = {}, abstract = {Since Bitcoin, the blockchain space considerably evolved. One crucial piece of software to interact with blockchains and hold private-public key pairs to distinct crypto-assets and securities are wallets. Wallet software can be offered by liable third-parties (‘custodians’) who hold certain rights over assets and transactions. As parties subject to financial regulation, they are to uphold Anti-money Laundering and Combating the Financing of Terrorist (AML/CFT) standards by undertaking Know-Your-Customer (KYC) checks on users of their services. In juxtaposition, wallet software can also be issued without the involvement of a liable third-party. As no KYC is performed and users have full ‘freedom to act’, such ‘non-custodial’ wallet software is popular in criminal undertakings. They are required to interact with peer-to-peer applications and organisations running on blockchains whose benefits are not the subject of this paper. To date, financial regulation fails to adequately address such wallet software because it presumes the existence of a registered, liable entity offering said software. As illustrated in the case of Tornado Cash, financial regulation fails to trace chains of secondary liability. Alas, the considered solution is a systematic surveillance of all transactions. Against this backdrop, this paper sets forth an alternative approach rooted in copyright law. Concepts that pertain to secondary liability prove of value to develop a flexible, principles-based approach to the regulation of non-custodial wallet software that accounts for both, infringing and non-infringing uses.}, keywords = {blockchain, Crypto-assets, decentralised finance, non-custodial wallet, Regulation, secondary liability}, }

Export control of cybersurveillance items in the new dual-use regulation: The challenges of applying human rights logic to export control external link

Computer Law & Security Review, vol. 48, 2023

Abstract

In 2021, the Recast Dual-Use Regulation entered into force. The regulation includes a heavily debated new provision on the export control of so-called cybersurveillance items. This provision departs from the traditional logic of export control rules in multiple ways. Most importantly, it positions human rights considerations as an important factor in the export control of a flexible range of technologies. This article explores the operation, implications and challenges of this new human rights-orientated approach to export control of digital surveillance technologies. Taking the definition of cybersurveillance items as a starting point of the analysis, the article draws on surveillance-related case law of the European Court of Human Rights and the Court of Justice of the European Union, to define the potential scope of application of the open-ended cybersurveillance concept of the Regulation. By exploring how this concept maps to technologies often connected with human rights infringements, such as facial recognition, location tracking and open-source intelligence, the article highlights the challenges of applying this new approach and underscores the need for its further development in practice.

cybersurveillance, Human rights, Regulation

Bibtex

Article{nokey, title = {Export control of cybersurveillance items in the new dual-use regulation: The challenges of applying human rights logic to export control}, author = {van Daalen, O. and van Hoboken, J. and Rucz, M.}, doi = {https://doi.org/10.1016/j.clsr.2022.105789}, year = {2023}, date = {2023-04-21}, journal = {Computer Law & Security Review}, volume = {48}, pages = {}, abstract = {In 2021, the Recast Dual-Use Regulation entered into force. The regulation includes a heavily debated new provision on the export control of so-called cybersurveillance items. This provision departs from the traditional logic of export control rules in multiple ways. Most importantly, it positions human rights considerations as an important factor in the export control of a flexible range of technologies. This article explores the operation, implications and challenges of this new human rights-orientated approach to export control of digital surveillance technologies. Taking the definition of cybersurveillance items as a starting point of the analysis, the article draws on surveillance-related case law of the European Court of Human Rights and the Court of Justice of the European Union, to define the potential scope of application of the open-ended cybersurveillance concept of the Regulation. By exploring how this concept maps to technologies often connected with human rights infringements, such as facial recognition, location tracking and open-source intelligence, the article highlights the challenges of applying this new approach and underscores the need for its further development in practice.}, keywords = {cybersurveillance, Human rights, Regulation}, }

Towards a Normative Perspective on Journalistic
AI: Embracing the Messy Reality of Normative
Ideals
download

Helberger, N., Drunen, M. van, Möller, J., Vrijenhoek, S. & Eskens, S.
Digital Journalism, vol. 10, iss. : 10, pp: 1605-1626, 2022

Abstract

Few would disagree that AI systems and applications need to be “responsible,” but what is “responsible” and how to answer that question? Answering that question requires a normative perspective on the role of journalistic AI and the values it shall serve. Such a perspective needs to be grounded in a broader normative framework and a thorough understanding of the dynamics and complexities of journalistic AI at the level of people, newsrooms and media markets. This special issue aims to develop such a normative perspective on the use of AI-driven tools in journalism and the role of digital journalism studies in advancing that perspective. The contributions in this special issue combine conceptual, organisational and empirical angles to study the challenges involved in actively using AI to promote editorial values, the powers at play, the role of economic and regulatory conditions, and ways of bridging academic ideals and the messy reality of the real world. This editorial brings the different contributions into conversation, situates them in the broader digital journalism studies scholarship and identifies seven key-take aways.

Artificial intelligence, governance, Journalism, Media law, normative perspective, professional values, Regulation

Bibtex

Article{nokey, title = {Towards a Normative Perspective on JournalisticAI: Embracing the Messy Reality of NormativeIdeals}, author = {Helberger, N. and Drunen, M. van and Möller, J. and Vrijenhoek, S. and Eskens, S.}, url = {https://www.ivir.nl/publications/towards-a-normative-perspective-on-journalisticai-embracing-the-messy-reality-of-normativeideals/digital_journalism_2022_10/}, doi = {https://doi.org/10.1080/21670811.2022.2152195}, year = {2022}, date = {2022-12-22}, journal = {Digital Journalism}, volume = {10}, issue = {10}, pages = {1605-1626}, abstract = {Few would disagree that AI systems and applications need to be “responsible,” but what is “responsible” and how to answer that question? Answering that question requires a normative perspective on the role of journalistic AI and the values it shall serve. Such a perspective needs to be grounded in a broader normative framework and a thorough understanding of the dynamics and complexities of journalistic AI at the level of people, newsrooms and media markets. This special issue aims to develop such a normative perspective on the use of AI-driven tools in journalism and the role of digital journalism studies in advancing that perspective. The contributions in this special issue combine conceptual, organisational and empirical angles to study the challenges involved in actively using AI to promote editorial values, the powers at play, the role of economic and regulatory conditions, and ways of bridging academic ideals and the messy reality of the real world. This editorial brings the different contributions into conversation, situates them in the broader digital journalism studies scholarship and identifies seven key-take aways.}, keywords = {Artificial intelligence, governance, Journalism, Media law, normative perspective, professional values, Regulation}, }

The Political Power of Platforms: How Current Attempts to Regulate Misinformation Amplify Opinion Power external link

Digital Journalism, vol. 8, num: 6, pp: 842-854, 2020

Abstract

This contribution critically reviews the ongoing policy initiatives in Europe to impose greater societal responsibility on social media platforms. I discuss the current regulatory approach of treating social platforms as mere 'intermediaries' of the speech of others and propose a different perspective. Instead of perceiving platforms as intermediaries and facilitators of the speech of others, I view social media platforms as active political actors in their own right, and wielders of considerable opinion power. I will explain how taking the perspective of opinion power throws a very different, and rather alarming light on the recent regulatory initiatives.

europe, frontpage, Mediarecht, opinion power, pluralism, Regulation, Social media platforms

Bibtex

Article{Helberger2020d, title = {The Political Power of Platforms: How Current Attempts to Regulate Misinformation Amplify Opinion Power}, author = {Helberger, N.}, url = {https://doi.org/10.1080/21670811.2020.1773888}, year = {0714}, date = {2020-07-14}, journal = {Digital Journalism}, volume = {8}, number = {6}, pages = {842-854}, abstract = {This contribution critically reviews the ongoing policy initiatives in Europe to impose greater societal responsibility on social media platforms. I discuss the current regulatory approach of treating social platforms as mere \'intermediaries\' of the speech of others and propose a different perspective. Instead of perceiving platforms as intermediaries and facilitators of the speech of others, I view social media platforms as active political actors in their own right, and wielders of considerable opinion power. I will explain how taking the perspective of opinion power throws a very different, and rather alarming light on the recent regulatory initiatives.}, keywords = {europe, frontpage, Mediarecht, opinion power, pluralism, Regulation, Social media platforms}, }

Webinar on Public and Regulatory Framework of Online Intermediaries external link

Quintais, J., Mezei, P., Harkai, I., Katzenbach, C., Magalhães, J.C., Schwemer, S. & Riis, T.
2020

Abstract

Recording of the reCreating Europe Online Workshop on Public and Private Regulatory Framework of Online Intermediaries organized on 5 May 2020. Slides and report of the event also available at the links below.

frontpage, online intermediaries, Regulation, webinar

Bibtex

Online publication{Quintais2020c, title = {Webinar on Public and Regulatory Framework of Online Intermediaries}, author = {Quintais, J. and Mezei, P. and Harkai, I. and Katzenbach, C. and Magalhães, J.C. and Schwemer, S. and Riis, T.}, url = {https://www.youtube.com/watch?v=n9RccSMBSjE&t=5s https://www.recreating.eu/public-and-regulatory-framework-of-online-intermediaries-workshop/ https://zenodo.org/record/3833714#.XseaZGgzbIW}, year = {0522}, date = {2020-05-22}, abstract = {Recording of the reCreating Europe Online Workshop on Public and Private Regulatory Framework of Online Intermediaries organized on 5 May 2020. Slides and report of the event also available at the links below.}, keywords = {frontpage, online intermediaries, Regulation, webinar}, }

Privacy Protection(ism): The Latest Wave of Trade Constraints on Regulatory Autonomy external link

University of Miami Law Review, vol. 74, num: 2, pp: 416-519, 2020

Abstract

Countries spend billions of dollars each year to strengthen their discursive power to shape international policy debates. They do so because in public policy conversations labels and narratives matter enormously. The “digital protectionism” label has been used in the last decade as a tool to gain the policy upper hand in digital trade policy debates about cross-border flows of personal and other data. Using the Foucauldian framework of discourse analysis, this Article brings a unique perspective on this topic. The Article makes two central arguments. First, the Article argues that the term “protectionism” is not endowed with an inherent meaning but is socially constructed by the power of discourse used in international negotiations, and in the interpretation and application of international trade policy and rules. In other words, there are as many definitions of “(digital) protectionism” as there are discourses. The U.S. and E.U. “digital trade” discourses illustrate this point. Using the same term, those trading partners advance utterly different discourses and agendas: an economic discourse with economic efficiency as the main benchmark (United States), and a more multidisciplinary discourse where both economic efficiency and protection of fundamental rights are equally important (European Union). Second, based on a detailed evaluation of the economic “digital trade” discourse, the Article contends that the coining of the term “digital protectionism” to refer to domestic information governance policies not yet fully covered by trade law disciplines is not a logical step to respond to objectively changing circumstances, but rather a product of that discourse, which is coming to dominate U.S.-led international trade negotiations. The Article demonstrates how this redefinition of “protectionism” has already resulted in the adoption of international trade rules in recent trade agreements further restricting domestic autonomy to protect the rights to privacy and the protection of personal data. The Article suggests that the distinction between privacy and personal data protection and protectionism is a moral question, not a question of economic efficiency. Therefore, when a policy conversation, such as the one on cross-border data flows, involves noneconomic spill-over effects to individual rights, such conversation should not be confined within the straightjacket of trade economics, but rather placed in a broader normative perspective. Finally, the Article argues that, in conducting recently restarted multilateral negotiations on electronic commerce at the World Trade Organization, countries should rethink the goals of international trade for the twenty-first century. Such goals should determine and define the discourse, not the other way around. The discussion should not be about what “protectionism” means but about how far domestic regimes are willing to let trade rules interfere in their autonomy to protect their societal, cultural, and political values.

frontpage, Privacy, protectionism, Regulation, trade

Bibtex

Article{Yakovleva2020, title = {Privacy Protection(ism): The Latest Wave of Trade Constraints on Regulatory Autonomy}, author = {Yakovleva, S.}, url = {https://repository.law.miami.edu/umlr/vol74/iss2/5/}, year = {0227}, date = {2020-02-27}, journal = {University of Miami Law Review}, volume = {74}, number = {2}, pages = {416-519}, abstract = {Countries spend billions of dollars each year to strengthen their discursive power to shape international policy debates. They do so because in public policy conversations labels and narratives matter enormously. The “digital protectionism” label has been used in the last decade as a tool to gain the policy upper hand in digital trade policy debates about cross-border flows of personal and other data. Using the Foucauldian framework of discourse analysis, this Article brings a unique perspective on this topic. The Article makes two central arguments. First, the Article argues that the term “protectionism” is not endowed with an inherent meaning but is socially constructed by the power of discourse used in international negotiations, and in the interpretation and application of international trade policy and rules. In other words, there are as many definitions of “(digital) protectionism” as there are discourses. The U.S. and E.U. “digital trade” discourses illustrate this point. Using the same term, those trading partners advance utterly different discourses and agendas: an economic discourse with economic efficiency as the main benchmark (United States), and a more multidisciplinary discourse where both economic efficiency and protection of fundamental rights are equally important (European Union). Second, based on a detailed evaluation of the economic “digital trade” discourse, the Article contends that the coining of the term “digital protectionism” to refer to domestic information governance policies not yet fully covered by trade law disciplines is not a logical step to respond to objectively changing circumstances, but rather a product of that discourse, which is coming to dominate U.S.-led international trade negotiations. The Article demonstrates how this redefinition of “protectionism” has already resulted in the adoption of international trade rules in recent trade agreements further restricting domestic autonomy to protect the rights to privacy and the protection of personal data. The Article suggests that the distinction between privacy and personal data protection and protectionism is a moral question, not a question of economic efficiency. Therefore, when a policy conversation, such as the one on cross-border data flows, involves noneconomic spill-over effects to individual rights, such conversation should not be confined within the straightjacket of trade economics, but rather placed in a broader normative perspective. Finally, the Article argues that, in conducting recently restarted multilateral negotiations on electronic commerce at the World Trade Organization, countries should rethink the goals of international trade for the twenty-first century. Such goals should determine and define the discourse, not the other way around. The discussion should not be about what “protectionism” means but about how far domestic regimes are willing to let trade rules interfere in their autonomy to protect their societal, cultural, and political values.}, keywords = {frontpage, Privacy, protectionism, Regulation, trade}, }

The independence and functioning of the regulatory authority for electronic media in Serbia, Study commissioned by the Council of Europe, Amsterdam/Brussels/Budapest/Belgrade, 2017. external link

Irion, K., Ledger, M. & Svensson, S.
2017

Abstract

This study carries out an independent assessment of the Regulatory Authority for Electronic Media (REM) of Serbia. The scope of the study is to apply the INDIREG methodology to the REM and provide contextual interpretation of the results with policy recommendations. This study has been commissioned by the Council of Europe, on the request of REM, in the framework of the Project “Reinforcing Judicial Expertise on Freedom of Expression and the Media in South-East Europe (JUFREX)”. REM, seated in Belgrade, is caught and operates in a challenging context: media markets in Serbia are highly saturated and government grants are awarded to selective private media. There is low upfront compliance with programme and advertisements rules as well as an overall squeeze on quality content and the accountability function of the media. Lacking the optimal support of the parliament and being sidelined by the Ministry on Culture and Information can damage the effective functioning of the independent regulator. REM in this situation appears to retreat to overly formalistic (law-abiding) activities without necessarily being effective in regulating the Serbian electronic and audiovisual media. Many stakeholders from the media sector do not perceive of REM as an authority pointing to a lack of enforcement or the deflection of responsibility which has undermined its public credibility. The study concludes with a set of recommendation how to address these challenges.

AVMS Directive, frontpage, independence, INDIREG, media, Regulation

Bibtex

Other{Irion2017d, title = {The independence and functioning of the regulatory authority for electronic media in Serbia, Study commissioned by the Council of Europe, Amsterdam/Brussels/Budapest/Belgrade, 2017.}, author = {Irion, K. and Ledger, M. and Svensson, S.}, url = {https://www.ivir.nl/rem-report-indiregmethodology-nov17-final-3/}, year = {1016}, date = {2017-10-16}, abstract = {This study carries out an independent assessment of the Regulatory Authority for Electronic Media (REM) of Serbia. The scope of the study is to apply the INDIREG methodology to the REM and provide contextual interpretation of the results with policy recommendations. This study has been commissioned by the Council of Europe, on the request of REM, in the framework of the Project “Reinforcing Judicial Expertise on Freedom of Expression and the Media in South-East Europe (JUFREX)”. REM, seated in Belgrade, is caught and operates in a challenging context: media markets in Serbia are highly saturated and government grants are awarded to selective private media. There is low upfront compliance with programme and advertisements rules as well as an overall squeeze on quality content and the accountability function of the media. Lacking the optimal support of the parliament and being sidelined by the Ministry on Culture and Information can damage the effective functioning of the independent regulator. REM in this situation appears to retreat to overly formalistic (law-abiding) activities without necessarily being effective in regulating the Serbian electronic and audiovisual media. Many stakeholders from the media sector do not perceive of REM as an authority pointing to a lack of enforcement or the deflection of responsibility which has undermined its public credibility. The study concludes with a set of recommendation how to address these challenges.}, keywords = {AVMS Directive, frontpage, independence, INDIREG, media, Regulation}, }

Political micro-targeting: a Manchurian candidate or just a dark horse? external link

Bodó, B., Helberger, N. & Vreese, C.H. de
Internet Policy Review, vol. 2017, num: 4, 2018

Abstract

Political micro-targeting (PMT) has become a popular topic both in academia and in the public discussions after the surprise results of the 2016 US presidential election, the UK vote on leaving the European Union, and a number of general elections in Europe in 2017. Yet, we still know little about whether PMT is a tool with such destructive potential that it requires close societal control, or if it’s “just” a new phenomenon with currently unknown capacities, but which can ultimately be incorporated into our political processes. In this article we identify the points where we think we need to further develop our analytical capacities around PMT. We argue that we need to decouple research from the US context, and through more non-US and comparative research we need to develop a better understanding of the macro, meso, and micro level factors that affect the adoption and success of PMTs across different countries. One of the most under-researched macro-level factors is law. We argue that PMT research must develop a better understanding of law, especially in Europe, where the regulatory frameworks around platforms, personal data, political and commercial speech do shape the use and effectiveness of PMT. We point out that the incorporation of such new factors calls for the sophistication of research designs, which currently rely too much on qualitative methods, and use too little of the data that exists on PMT. And finally, we call for distancing PMT research from the hype surrounding the new PMT capabilities, and the moral panics that quickly develop around its uses.

democratie, frontpage, Online platforms, Personal data, political microtargeting, Regulation

Bibtex

Article{Bodó2018, title = {Political micro-targeting: a Manchurian candidate or just a dark horse?}, author = {Bodó, B. and Helberger, N. and Vreese, C.H. de}, url = {https://policyreview.info/articles/analysis/political-micro-targeting-manchurian-candidate-or-just-dark-horse}, year = {0119}, date = {2018-01-19}, journal = {Internet Policy Review}, volume = {2017}, number = {4}, pages = {}, abstract = {Political micro-targeting (PMT) has become a popular topic both in academia and in the public discussions after the surprise results of the 2016 US presidential election, the UK vote on leaving the European Union, and a number of general elections in Europe in 2017. Yet, we still know little about whether PMT is a tool with such destructive potential that it requires close societal control, or if it’s “just” a new phenomenon with currently unknown capacities, but which can ultimately be incorporated into our political processes. In this article we identify the points where we think we need to further develop our analytical capacities around PMT. We argue that we need to decouple research from the US context, and through more non-US and comparative research we need to develop a better understanding of the macro, meso, and micro level factors that affect the adoption and success of PMTs across different countries. One of the most under-researched macro-level factors is law. We argue that PMT research must develop a better understanding of law, especially in Europe, where the regulatory frameworks around platforms, personal data, political and commercial speech do shape the use and effectiveness of PMT. We point out that the incorporation of such new factors calls for the sophistication of research designs, which currently rely too much on qualitative methods, and use too little of the data that exists on PMT. And finally, we call for distancing PMT research from the hype surrounding the new PMT capabilities, and the moral panics that quickly develop around its uses.}, keywords = {democratie, frontpage, Online platforms, Personal data, political microtargeting, Regulation}, }

Regulating the new information intermediaries as gatekeepers of information diversity external link

Kleinen-von Königslöw, K., van der Noll, R. & Helberger, N.
Info, num: 6, pp: 50-71., 2015

Control technology, Information society, Internet, Mediarecht, Policy, Regulation, User studies

Bibtex

Article{nokey, title = {Regulating the new information intermediaries as gatekeepers of information diversity}, author = {Kleinen-von Königslöw, K. and van der Noll, R. and Helberger, N.}, url = {http://www.ivir.nl/publicaties/download/1618.pdf}, year = {0901}, date = {2015-09-01}, journal = {Info}, number = {6}, keywords = {Control technology, Information society, Internet, Mediarecht, Policy, Regulation, User studies}, }