DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

1ST INTRA-VARSITY MODEL UNITED NATIONS

CONFERENCE

BACKGROUND GUIDE
(August 13th and 14th, 2018)
 FOREWORD

Dear Delegates,

We are pleased to welcome you to the First DSNLU Intra-Varsity Model United Nations
Conference, 2018, which is being conducted from August 13th to 14th, 2018. This conference
is the host of delegates from two committees, viz., United Nations General Assembly and the
United Nations Human Rights Council.

The agenda under discussion for the first committee is the “Regulation of Block-chain
Technology (vis-à-vis cryptocurrency)”. The agenda for the second committee is “Legalisation
of Prostitution”.

We hope you will find this Background Guide useful as it serves to introduce you to the topics
for the committees. It is not meant to replace further research and we highly encourage you
explore in-depth your countries’ policies and aforementioned agendas.

As the only principal organ with universal membership and equal voting, the General Assembly
is the UN’s main forum of discussion and holds a unique role as a norm-setter within the UN
system. As such, delegates simulating this committee will have the opportunity to work towards
consensus on critical issues concerning global peace and security. We believe that this
committee’s mandate will help regulate the topically discussed block-chain technology, and
fight the crimes resultant of the ingenious technology.

The United Nations Human Rights Council is a United Nations body whose mission is to
promote and protect human rights around the world. The UNHRC has 47 members elected for
staggered three-year terms on a regional group basis. The UNHRC investigates allegations of
breaches of human rights in UN member states, and addresses important thematic human rights
issues such as freedom of association and assembly, freedom of expression, freedom of belief
and religion, women's rights, LGBT rights, etc. We believe that this is an appropriate forum to
resolve the rise in prostitution as a way of earning one’s living. While this background does
not reflect the opinions of the UN or the drafters, it seeks to enable understanding of the flow
of debate expected in the MUN Committee.

Sincerely,

Organising Committee (DSNLU Intra-Varsity Model United Nations, 2018).

 REGULATION OF BLOCK-CHAIN TECHNOLOGY

The block-chain technology is an ingenious invention the brainchild of a person or group of

people known by the pseudonym, Satoshi Nakamoto. A block-chain is a growing list of records,
called blocks, which are linked using cryptography. Each block contains a cryptographic hash
of the previous block, a timestamp, and transaction data (generally represented as a merkle tree
root hash). By design, a blockchain is resistant to modification of the data.

It is "an open, distributed ledger that can record transactions between two parties efficiently
and in a verifiable and permanent way" The invention of the blockchain for bitcoin made it the
first digital currency to solve the double-spending problem without the need of a trusted
authority or central server.

History of Block-chain

The first blockchain was conceptualized by a person (or group of people) known as Satoshi
Nakamoto in 2008. It was implemented the following year by Nakamoto as a core component
of the cryptocurrency bitcoin, where it serves as the public ledger for all transactions on the
network.

The words block and chain were used separately in Satoshi Nakamoto's original paper, but
were eventually popularized as a single word, blockchain, by 2016. The term blockchain 2.0
refers to new applications of the distributed blockchain database, first emerging in 2014. This
has been described as coming with "a programming language that allows users to write more
sophisticated smart contracts, thus creating invoices that pay themselves when a shipment
arrives or share certificates which automatically send their owners dividends if profits reach a
certain level."

How it Works

A blockchain is a decentralized, distributed and public digital ledger that is used to record
transactions across many computers so that the record cannot be altered retroactively without
the alteration of all subsequent blocks and the consensus of the network. This allows the
participants to verify and audit transactions inexpensively.

By allowing digital information to be distributed but not copied, blockchain technology created
the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, the
tech community is now finding other potential uses for the technology.
Information held on a blockchain exists as a shared — and continually reconciled — database.
This is a way of using the network that has obvious benefits. The blockchain database isn’t
stored in any single location, meaning the records it keeps are truly public and easily verifiable.
No centralized version of this information exists for a hacker to corrupt. Hosted by millions of
computers simultaneously, its data is accessible to anyone on the internet.

The Problem of Regulation in various Nations

The term “blockchain” was first used in the fall of 2015. In the following year, the craze over
this new concept of storing data in a secure and immune way, as well as Bitcoin cryptocurrency
it provides the foundation for, spread across the globe with initial coin offerings (ICOs), an
issuance of virtual tokens for the primary investment. ICOs gave way to the companies of a
new breed: they avoided a traditional venture capital and promised to disrupt every industry
with blockchain technology.

Notably, programmable money was the first application of blockchain, with projects like
Monero and Litecoin following the steps of Bitcoin. The immense hype accelerated the growth
of cryptocurrencies’ value and increased the number of people investing in them. In 2017 alone
new and experienced cryptocurrency investors spent over $6 billion on ICOs, not taking into
account billions of dollars invested in purchasing more bitcoin, ethereum, and other
decentralized currencies. The popularity of ICOs has also led to the proliferation of illegal
financial activities known as “pump-and-dumps”

Consequently, China and a few other countries banned ICOs in 2017. Regulatory meetings
happened very often, and governments started issuing new laws with similar regularity.

This has led to creation of BitLegal — an online map that tracks the constantly evolving
regulatory landscape of cryptographic assets and distributed ledger technology (DLT), as well
as reflects how governments around the world regulate cryptocurrencies and blockchain
technology.

For instance, small countries like Gibraltar, Bermuda, and Lichtenstein are all seeking to attract
new capital and become crypto-friendly as a result. The Republic of Marshall Islands and
Venezuela even issue their own tokens to oppose external financial influence.

On March 20, 2018, G20 countries gathered in Buenos Aires to discuss the possible regulation
of cryptocurrency. Argentina, Australia, Turkey, South Africa, and the United Kingdom
proclaimed that they decided not to regulate cryptocurrencies. Mark Carney, the head of The
Bank of England, was a chairman of G20’s Financial Stability Board and mentioned that
“cryptoassets do not pose risks to global financial stability at this time,” citing the relatively
small capitalization of the market. On the other hand, Russia is drafting a bill that will allow
the registration of cryptocurrency exchanges only on official government websites.

Authorities in Indonesia have ruled out the usage of cryptocurrencies. Indonesia Central Bank
insisted that Indonesian rupiah is the only currency permitted for transactions inside the
country, referring to the country’s currency act. Meanwhile, Saudi Arabia is working on
establishing legal norms for blockchain technology implementation without prohibiting
cryptocurrencies. The country cooperated with the UAE on a pilot project to explore cross-
border digital currency payments on blockchain. In October 2017, the Saudi Arabian Islamic
Development Bank ordered its researchers to develop blockchain-based products.

Some Italian banks are considering to issue their own cryptocurrency, while the government
wants to determine the number of commercial companies accepting payments in
cryptocurrency. France warns its citizens of risks associated with the new class of digital assets
and prepares a law on ICOs and cryptocurrencies.

South Korea is against anonymous transactions and currently develops a tax law, whereas
Japan and Germany acknowledged bitcoin as an eligible currency and have taxed it, too.
Finally, India prohibits cryptocurrency payments, considering them illegal. Brazil prohibits
investing in bitcoin as well.

While various national governments recognise the need for block-chain technology in this
world of modern internet technology, they are also increasingly understanding the need for its
regulation. For instance, the United States’ SEC recognized the numerous ways of blockchain
implementation across dozens of industries, from finance to health and to media, and even said
that “there could be no blockchain without bitcoin.”

European Blockchain Partnership

In a standout announcement, 22 European countries have recently signed a Declaration on

establishment of a European Blockchain Partnership. The partnership “will be a vehicle for
cooperation amongst Member States to exchange experience and expertise in technical and
regulatory fields and prepare for the launch of EU-wide blockchain applications across the
Digital Single Market for the benefit of the public and private sectors.” The partnership will
also ensure that Europe “continues to play a leading role in the development and roll-out of
blockchain technologies.”

Crux of the Problem

In light of the nations which have unregulated block-chain technologies and the nations which
have regulated it, it is increasingly difficult in the internet era to resolve cyber-crimes resultant
of this technology owing to the disagreement with regard to the technology’s regulations, as
more often than not, these crimes arise in various jurisdictions.
 LEGALISATION OF PROSTITUTION

Prostitution, frequently referred to as the world’s oldest profession, has been around for
millennia. It has varied in form and purpose, at times not just existing for the purpose of gaining
material goods but as far as occurring as religious rites.

In today’s world, however, prostitution takes place for the gain of materials, though they might
vary from necessities to live, to cash in line with any other profession to more intangible things
such as physical protection.

The initial reason for a new convention on prostitution comes down to the complexity involved.
Laws concerning prostitution vary greatly across United Nations member states, from it being
an act punishable by death to a fully legal, regulated business.

Prostitution laws vary heavily, often country to country. Furthermore, the simple matter that
prostitution is legal does not specify whether related matters, such as running a brothel are
legal. It also doesn’t cover whether acts might be legally allowed, but are prohibited by certain
groups.

Current Scenario

Prostitution has, for many centuries, been linked heavily to slavery, and that remains true today.
What started as specific slaves, out of large groups, being forced into slavery has become more
focused. With wide-spread slavery heavily reduced, and all but eliminated in developed
countries, sex trafficking has become, by far, the most prevalent form of slavery or trafficking
– with just under 80% of slavery being for the purposes of fixed prostitution. In the past, forced
prostitution was accepted and those who voluntarily became prostitutes were reduced to the
level of slaves. Currently, however, finding a way to separate those forced into prostitution to
those who choose to enter it has become a key problem for any country legalising prostitution.

Finding true statistics for changing prostitution rates, even over the last century alone, just
within developed countries is extremely difficult. Changes in law, and views towards
prostitution, coupled with varying amounts of sex trafficking means that statistics for numbers
of prostitutes, those using them and what percentage were forced into the trade varies wildly,
over short periods of time. The methods prostitutes has also changed over the last 80 years,
first with adoption of telephones and more recently the internet - this allowed the use of brothels
to be avoided and evasion of the law (as necessary) to be made far easier, and has placed
prostitutes at even more risk of their clients.

History of the Problem

2400 B.C. First case of recorded prostitution is in ancient Sumeria. Multiple pieces of evidence
over next six centuries linking prostitution to worship for certain gods

1780 B.C. Hammurabi’s laws, include the first recorded rules concerning the conduct of
prostitutes, and how their profession affects their, and their children’s, position in society.

1075 B.C. The Code of Assura, formed in Assyria, abrogates the position of prostitutes even
further, additionally threatening extreme punishments for any prostitute found to be breaking
the code.

6th Century B.C. Formal brothels come into formation in several places, including Greece,
Rome, China and Japan. Little is known other than that both women and men were never
citizens or had high class and conditions were very poor. What regulation there was often
concerned prices, and not those involved.

4th Century B.C. (circa). Wide-spread introduction of Hetairai within Greece, who covered
both the realm of prostitutes and educated female companions. Somewhat analogous to Geishas
in Japan during the 18 century. While treated better than prostitutes within brothels (sometimes
radically so), there was no formalised code of conduct requiring good treatment.

30 B.C. – 100 A.D. Increasing Roman codes concerning prostitution, specifying that those who
practice prostitution must be slaves, or if free, reduce themselves to a very similar level to
slavery. As such, the only protections in place were “damaging the property” – to be paid to
the slave’s master as recompense.

438 A.D. Introduction within the Roman Empire of a law banning the selling of a son or
daughter by a parent into prostitution.

7th Century A.D. Islam bans prostitution in all forms, and brings in significant punishments,
although significant trade continues. In addition, the institution of a total ban radically
progresses the creation of early sex trafficking.
1254 A.D. France institutes a complete ban against prostitution, the first major European
country to do so. It stands in contrast to much of Europe that introduced organised and regulated
brothels.

16th Century A.D. A century long outbreak of syphilis and other transmitted diseases cause a
Europe-wide turn against prostitution. The increase of laws prohibiting it, coupled with the
spread of trading into Asia, and the forming of colonies in Africa and the Americas introduced
an enormous swathe of slavery, with a significant amount of slaves being forced into
prostitution.

18th Century A.D. Prostitutes, starting in Europe, start to use early fabricated condoms.

1860’s A.D. France and Britain bring in contagious diseases laws to allow forced medical
examinations of prostitutes (suspected or proved) and they could be quarantined if found to be
infected.

1875 A.D. – The USA bans the importation of women for the use of prostitution (the first
implementation of specific anti-sex-trafficking legislation, compared to blanket anti-slavery
laws)

1932-1945 A.D. The infamous “comfort women” forced into prostitution by Japan, both within
their own territory and in occupied territory, anywhere between 50,000 and 200,000 women
were forced by (primarily) the Japanese military.

1959 A.D. (onwards.) Increasing amounts of countries legalise prostitution, varying over
whether to legalise brothels as well and whether to regulate the industry.

1999 A.D. Sweden criminalises the “customer” in prostitution, classifying it as assault, and not
classifying the prostitute as a criminal.

2012 A.D. United Nations-backed Global Commission on HIV and the Law urges that all laws
against consensual adult sex trade be revoked immediately.

The Problem

The delegate participating in this Committee may address the following list of concerns, in no
order. However, the list is not inclusive and the Committee will be required to discuss all other
issues regarding legalisation of prostitution.
i. Curbing the spread of Sexually Transmitted Diseases (STDs)
ii. Curbing practices of sex trafficking or exploitation of sex workers
iii. Cross-border disputes regarding legalisation of prostitution, as the drafters
recognise it might be against a few Member States’ national sentiments to recognise
and legalise prostitution.