Legal protection of cryptocurrencies sounds like a fairy tale: as if the state is saying that now your coins are safe, and in case of which, you will get justice. But it's actually more like a bureaucratic quest with a bad ending.
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1. Legal chaos
First question: What is cryptocurrency in legal terms? Is it property, a digital asset, or "something else" altogether? While the court is deciding what your bill is, the scammers have already transferred it to Monero ten times.
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2. Judicial quest
Filing a lawsuit: You come to court saying, "My cryptocurrencies were stolen." The judge asks: "Is this legal at all?"
Evidence: You need to prove that the coins were yours. But no blockchain explorer will show that this wallet belongs to you and not to your neighbor who forgot the password.
Result: Even if the court decides in your favor, how to get the assets back? Find a hacker hiding somewhere in Thailand? Should the blockchain be forced to "rewind" transactions? Good luck
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3. International circus
Is the exchange where your coins disappeared registered in some tiny island country? Congratulations, now your lawyer is studying local laws, which, by the way, may not recognize crypt at all.
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4. Fight against fraudsters
Imagine that someone stole your coins and transferred them to an anonymous wallet. You know where they are, but so what? Blockchain will not tell who is behind the screen. And if they tell the IP address, it turns out that this is some internet cafe in Indonesia.
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5. State promises
"We will protect investors." As? With the help of courts that will hear cases for years?
"We will introduce compensations." At whose expense? Tax payers? Or exchanges that themselves are barely surviving after regulatory fines?
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6. Reality
Legal protection works if:
You live in a country with clear crypto legislation.
The exchange is regulated and ready to cooperate.
Scammers are too stupid to cover their tracks.
In other cases, you are left alone with the problem. Therefore, instead of legal hopes, it is better to rely on a cold wallet, long passwords and the principle "don't keep everything on the stock exchange". Because a trial is good, but your own defense is better.
