MN632 - Cryptofinance and Legal Framework

Credit points: 20 credit points

Workload: 60 hours

Prerequisite: MN631 Blockchain technologies and strategy

Co-requisite: N/A

Aims & objectives

This is an elective unit out of a total 12 units in Master of Networking (MNet). This unit addresses the course learning outcomes and complements other courses in a related field by developing students’ specialised knowledge in cryptofinance and legal framework. For further course information refer to: http://www.mit.edu.au/study-with-us/programs/master-networking. This unit is part of the AQF level 9 (MNet) course. Crypto-Finance, Law and Regulation investigates whether crypto-finance will cause a paradigm shift in regulation from a centralised model to a model based on distributed consensus. This unit discusses the latest developments in crypto-finance, and the advantages and disadvantages of crypto-currency as an alternative payment product. It also investigates how such a decentralised crypto-finance system can provide access to finance, promote a shared economy, and allow access to justice.

Topics include:

  • Distributed ledger technologies in capital markets
  • Crypto-assets law and regulation
  • Access to finance and artificial intelligence on blockchain network
  • The economics and politics of data and its legal protection in cryptocurrencies
  • Code-as-law in financial markets: functions, risks and governance

Learning outcomes

At the completion of this unit students should be able to:

  • Explore the emergence of a decentralised and disintermediated crypto-market.  
  • Analyse three components of the financial market – technology, finance, and the law.
  • Investigate regulators’ enforcement policies and their jurisdiction over crypto-finance operators and participants. 
  • Analyse and report on the latest developments in crypto-finance, in comparison with crypto-currency as an alternative payment product.
  • exploring the law, regulation and governance of crypto-finance from a national, regional and global viewpoint.

Weekly topics

This unit will cover the content below:

Week # Lecture Topics Laboratory Topics
1 Lecture 1 Introduction Laboratory 1 Cryptocurrencies
2 Lecture 2 Distributed ledger technologies in capital markets Laboratory 2 Securities trading on DLT networks
3 Lecture 3 Crypto-assets law and regulation Laboratory 3 Legal taxonomy and regulatory intervention
4 Lecture 4 Smart contracts and financial transactions: practice, risk and governance Laboratory 4 Market surveillance and enforcement proceedings
5 Lecture 5 Regulatory objectives for cryptocurrency systems: unstable coins, stable coins and state-backed cryptocurrency Laboratory 5 Cryptocurrency systems
6 Lecture 6 Security token offering (STO) and investor protection Laboratory 6 Legal and regulatory issues relating to security token offering (STO)
7 Lecture 7 Access to finance and artificial intelligence on blockchain network Laboratory 7 Use of AI in the trading platforms
8 Lecture 8 DLT-based crowdfunding platforms and investor protection Laboratory 8 Healthcare – Crowdfunding platform
9 Lecture 9 The economics and politics of data and its legal protection in cryptocurrencies Laboratory 9 Personal data and privacy
10 Lecture 10 The Peer-to-Peer Energy Trading Platform Laboratory 10 Crypto-market – a blockchain-based trading system
11 Lecture 11 Code-as-law in financial markets: functions, risks and governance Laboratory 11 Assignment 2 demonstration
12 Lecture 12 Review Laboratory 12 Review and submission of remaining laboratory and tutorial.

Assessment

Assessment Task Due Date A B Learning Outcomes Assessed
Assessment 1 Individual -Formative Week 3 10%   a
Assessment 2 - In-class test (On Campus, Face to Face) Week 6   10% a-b
Assessment 3 - Group Week 11 20%   c-e
Assessment 4 - Class Participation and Contribution Week 2-11 10%   a-e
Final Examination (3 hours)     50% a-e
TOTALS   40% 60%  

Task Type: Type A: unsupervised, Type B: supervised

Contribution and participation (10%)
This unit has class participation as an assessment. The assessment task and marking rubric will follow the Guidelines on Assessing Class Participation (https://www.mit.edu.au/about-us/governance/institute-rules- policies-and-plans/policies-procedures-and-guidelines/Guidelines_on_Assessing_Class_Participation). Further details will be provided in the assessment specification on the type of assessment tasks and the marking rubrics.

Textbook and reference materials

Note: Students are required to purchase the prescribed textbook and have it available each week in class.

Textbook:
J. Lee, Crypto-Finance, Law and Regulation: Governing an Emerging Ecosystem, Routledge, 1st ed., 2022

References:

  • N. Hamilton, Bitcoin And Blockchain Basics 2021: An Introduction to Master Bitcoin, Blockchain and Cryptocurrency Technologies for Beginners Plus Investing Strategies & Tips, Independently published, 2021
  • S. Goutte, K. Guesmi, et al. Cryptofinance: A New Currency For A New Economy, World Scientific, Springer, 2021
  • S. Goutte, K. Guesmi, et al. Cryptofinance and Mechanisms of Exchange: The Making of Virtual Currency (Contributions to Management Science), 2020
  • M. Trumps,  Crypto-Finance: The Only Guide Designed to Precede Drastic Financial Change and Anticipate the Early-Coming Crisis, Crypto, 2021

Adopted Reference Style: IEEE

Graduate attributes

MIT is committed to ensure the course is current, practical and relevant so that graduates are “work ready” and equipped for life-long learning. In order to accomplish this, the MIT Graduate Attributes identify the required knowledge, skills and attributes that prepare students for the industry.
The level to which Graduate Attributes covered in this unit are as follows:

Ability to communicate Independent and lifelong learning Ethics Analytical and problem solving Cultural and global awareness Team work Specialist knowledge of a field of study

Legend

Levels of attainment Extent covered
The attribute is covered by theory and practice, and addressed by assessed activities in which the students always play an active role, e.g. workshops, lab submissions, assignments, demonstrations, tests, examinations.
The attribute is covered by theory or practice, and addressed by assessed activities in which the students mostly play an active role, e.g. discussions, reading, intepreting documents, tests, examinations.
The attribute is discussed in theory or practice; it is addressed by assessed activities in which the students may play an active role, e.g. lectures and discussions, reading, interpretation, workshops, presentations.
The attribute is presented as a side issue in theory or practice; it is not specifically assessed, but it is addressed by activities such as lectures or tutorials.
The attribute is not considered, there is no theory or practice or activities associated with this attribute.