Features of the development of modern science in the pandemic’s era: collection of scientific papers «scientia» with Proceedings of the I international Scientific and Theoretical Conference (Vol. 1)

 
 

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December 3, 2021 | Berlin, Germany | Collection of scientific papers «SCIENTIA»
 
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Inamdjanova Elnora Elbekovna 
 
Lecturer at the Department of Private International Law 
Tashkent State University of Law, Republic of Uzbekistan, Tashkent 
INVESTMENT AND INVESTMENT ACTIVITY
IN THE DIGITAL ECONOMY 
Annotation
.This article explores the issues of investment regulation during the period of enhanced 
development of the digital economy. The main purpose of the article is to disclose the essence of the digital 
economy, investment activity on specially designed platforms, the impact and role of cryptocurrency, 
digital assets, issues of improving legislation and the need to clarify the types of investments in the digital 
economy from the point of view of science and international legal sources. 
 
In modern conditions of the digital transformation of international trade relations, the 
prevailing area of the economic position of the state must be supported by investment activities. 
In this regard, attracting foreign investment plays a significant role, since domestic investment is 
not always sufficient for effective development and expansion of the economy. For investment to 
have a positive impact on international trade relations, an effective legal framework and regulation 
is needed, taking into account the increasingly popular digital economy. The Republic of 
Uzbekistan today is considered by foreign investors as an attractive place for foreign direct 
investment. However, the level of foreign direct investment inflows to Uzbekistan remains low 
due to the lack of transparency and stability of national legislation. In our country, reforms were 
carried out aimed at improving investment activities and guarantees of protection of foreign 
investors. At the moment, the Law of the Republic of Uzbekistan “On Investments and Investment 
Activity” [1] is an important legal basis, where the main task of modern investment policy is the 
competent creation of regimes that will allow capital to move freely and unify internal legal 
regimes. In particular, the review of investment legislation suggests improving the investment 
climate in the country within the digital economy. 
Today, in the Republic of Uzbekistan, enhanced measures are being taken to develop 
electronic commercial relations and workflow, the digital economy, and actions are being taken 
to improve the legal framework. The digital economy is considered to be a newly emerging 
phenomenon, the importance of which is estimated to be growing, especially in developing 
countries. According to professors B. Ruman and R. Hicks. The core of the digital economy is the 
“digital sector”: the IT / ICT sector producing basic digital goods and services [2]. The true “digital 
economy”, defined as part of economic products derived exclusively or predominantly from 
digital technologies with a business model based on digital goods or services, consists of the digital 
sector and digital and platform services. The widest range is determined by the use of ICT in all 
areas of the economy, referred to as the "digital economy" [3]. The term "information economy" 
has come to denote a broad, long-term trend towards an increase in digital assets, the value of 
assets based on information and knowledge versus tangible assets and products related to 
agriculture, mining and manufacturing. The term "digital economy" refers especially to the recent 
and still largely unrealized transformation of all sectors of the economy through the digitization 
of information using a computer. Also, the digital economy allows and carries out trade in goods 
and services through electronic commerce on the Internet [4]. 
It should be noted that in many foreign countries one of the priority areas of the economy 
and international trade relations is blockchain technologies, as well as artificial intelligence and 
crypto-asset activities, which are gradually being introduced into all areas of society. Legislative 

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Features of the development of modern science in the pandemic’s era | Volume 1
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regulation of modern economic phenomena requires the determination of the legal status of digital 
technologies that are related to the investment field, which can also include "cryptocurrency", 
"token", "smart contracts", "digital wallet" and digital assets. 
So, in our state, a number of important regulatory and legal acts on the development of the 
digital economy and diversification of investment activities and business have been adopted, 
which should include the Resolution of the President of the Republic of Uzbekistan "On measures 
to develop the digital economy in the Republic of Uzbekistan" [5], the Decree of the President of 
the Republic of Uzbekistan "On the approval strategy “Digital Uzbekistan-2030” and measures 
for its effective implementation ”[6], Resolution of the President of the Republic of Uzbekistan“ 
On the establishment of a fund to support the development of the digital economy “digital trust” 
”[7], Resolution of the President of the Republic of Uzbekistan“ On measures to organize the 
activities of crypto-exchanges in the Republic of Uzbekistan ”[8], which in one way or another 
are aimed at attracting direct flows of foreign investment and creating a favorable climate for 
investment activities within the digital economy. 
In accordance with the Law of the Republic of Uzbekistan "On Investments and Investment 
Activity", investment activity provides for certain actions to make investments, where investments 
mean tangible and intangible benefits, for the risks of which the investor is responsible, related to 
social, entrepreneurial, scientific and other types of spheres for the purpose making a profit. 
Investments include cash, targeted bank deposits, shares, shares, stocks, bonds, promissory 
notes, which can also be expressed in electronic format [8]. However, o the format for expressing 
these investments is not specified in the legislation, which may indicate the imperfection of the 
investment regulation, which needs to be detailed and expanded. For example, in the bilateral 
investment agreement between Bahrain and Uzbekistan, investments indicate all types of assets 
in which an investor of one Party has invested in the territory of the other Party in accordance with 
the rules of this Party, and includes, among other things, tangible and intangible, movable and 
immovable property, and also related property rights; other forms of interest in stocks, bonds and 
shares of companies and / or forms of economic interest obtained from the relevant activity; the 
right to claim funds used to create economic well-being, or to demand any investment and 
economic activity; intellectual property rights, any right provided by law or contract to participate 
in economic activity, where all of the above can be expressed in one form or another in the digital 
infrastructure [9]. 
In turn, Professor B.M.Bizhoev argued that the virtual world, in contrast to the material 
world with natural human interaction, is open to innovation and represents an extraterritorial 
communication of people seeking to develop, use, exchange or transmit information about the 
money circulation of material objects. the world [11]. Since scientific and technological progress 
is a key factor in the development of the digital economy, it is equally important to stimulate the 
innovative activity of legal entities with the help of legal forms and regulations and introduce 
science for the economic development of society in order to achieve profitability. The regulation 
will have to reflect all the basic principles of civil law and take into account the presumption of 
reasonableness and good faith of all participants. 
If we pay attention to international experience, it should be noted that two methods have 
been identified to strengthen the digital industry and related investments. For example, the US 
experience shows that the state itself should take measures to support and improve the business 
environment for investing in crypto assets [12]. However, China's approach on this issue is that it 
is supposed to create a digital infrastructure controlled by the government, but also with support 
and private investments, various tax incentives, technology development, that is, on the basis of 
public-private partnerships. When improving legislation, the above approaches should be taken 
into account when identifying and creating a mechanism for regulating investments in the digital 
economy [13]. Also, the Serbian Law on Digital Assets, which will enter into force on June 29, 
2021, regulates the regulation of all digital assets regardless of the technology on which they are 

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December 3, 2021 | Berlin, Germany | Collection of scientific papers «SCIENTIA»
 
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based, where a digital asset is characterized as a digital record of value that can be bought, sold, 
exchanged or transfer and which can be used as a medium of exchange or for investment purposes. 
This Law describes two types of digital assets: 
- virtual currency as a type of digital asset that is not issued and whose value is not 
guaranteed by the central bank or other government agency, is not tied to legal tender and does 
not have the legal status of money or currency, but is accepted by individuals or legal entities as a 
medium of exchange, and can be bought, sold, exchanged, transferred and stored electronically; 
- digital tokens, expressed in any right to intangible property, which digitally represents one 
or more other property rights [14]. In the Republic of Uzbekistan, regulators may face obstacles 
of interpretation when defining the scope and application of laws that do not provide for financial 
products with new, diverse and unique characteristics of digital assets. [19-22] 
In conclusion, it should be noted that the study of the concepts of investment and investment 
activity in the digital economy requires further consideration of the means of legal regulation by 
industry, which include the development and improvement of regulatory legal acts, the conclusion 
of investment agreements, the adoption of the necessary state investment programs [15]. In a 
market and digital economy, the main tasks of the state are to create favorable conditions for 
attracting the necessary investments to promote priority target economic systems, modernization 
and creation of innovations, which are the basis for managing investments in digital infrastructure 
[16]. 
Modern digital investment policy is a key tool in the implementation of structural and 
systemic changes in the economy, the development of the region, natural resources, employment, 
the development of science and technology, and the solution of growing environmental problems 
[17]. The investment policy of this time is aimed and to solve the problems of rapid economic 
development, taking into account modern techniques, technologies and methods of organizing 
production by investors, where these problems can be solved directly with the help of private 
foreign investment [18]. In order to attract them, it is necessary to develop an open and liberal 
investment policy with clear, effective and strictly enforced laws, as this will contribute to the 
development of an incentive to attract investment. In addition, for investments to be attracted at 
an active level, the regulatory framework, which includes both the national legal framework of 
the host country and the international legal framework, must be clear, consistent, open to foreign 
direct investment and ensure effective investment, protection standards and legal stability within 
the digital economy.