Regulation Of Cryptocurrencies Research Articles

An Investigation into the State of Cryptocurrencies and Regulatory Challenges in Zambia

Cryptocurrencies and particularly Bitcoin have been discussed globally as having the potential to disrupt the way financial services currently operate. They bring about secure, always available, peer to peer and decentralized payment methods that have some distinct advantages over the traditional methods of payments. Cryptocurrencies are a variant of digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions at lower transaction fees and eliminates the need for a central intermediary and any bank charges. Their set up costs are usually cheaper than traditional Brick and Mortar banking services because they leverage on already existing infrastructure. Africa is thriving at these initiatives as it is believed to greatly benefits the underserved in the near future. This study explored the current state of cryptocurrencies and the regulatory challenges and inadequacies of the current financial and ICT regulations in Zambia. This study further compared Zambia’s regulatory challenges on cryptocurrencies with similar world Bank Findex ranked developing countries in Africa. There is a lot of cryptocurrencies hype and activity going on in Zambia and citizens are currently trading peer-to-peer using social media platforms and websites such as www.remitano.com, www.coinmama.com, www.localbitcoins.com and many more available online platforms. Regrettably, the illiteracy surrounding cryptocurrency is not the special preserve of the general public because it finds its place even among those who are charged with the responsibility of regulating the financial landscape or fighting crime which may have its origins in the use or misuse of virtual currencies. The regulators are currently playing catch up and only cautioning citizens on the Risk of cryptocurrencies instead of exploring through research and development to get the most out of this technology. Based on the research results, the study concludes by comparing the current state of cryptocurrencies and the rate of adoption and usage in Zambia. The study further provides recommendations on the need for cryptocurrency policies and regulations that are consolidated, facilitating, interoperable and harmonized between different regulators to avoid restrictive regulations that might kill inventions and allow for continued innovations, growth and adoption of the cryptocurrency landscape in Zambia.

BITCOIN AS A SPECIAL KIND OF CRYPTOCURRENCY: A CONCEPT, MEANING AND PROSPECTS OF LEGAL REGULATION IN BUSINESS

In order to develop the digital economy in the Russian Federation, the Program «Digital Economy of the Russian Federation» that is aimed, inter alia, at the formation of a regulatory framework for the legal regulation of new relations in the field of digital economy, was approved by the Decree of the Government of the Russian Federation No. 1632-r of July 27, 2017. Particularly relevant in this regard is the issue of cryptocurrency and bitcoin legal regulation. The article deals in detail with a special type of cryptocurrency, namely: bitcoin. The author analyzes the main problems associeted with the necessity of legal regulation of cryptocurrencies. The conclusion is made that legal regulation of cryptocurrency as a means of payment requires a complex approach and it is impossible without due regatd to the peculiarities of legal regulation of bitcoin. The paper provides for the interaction between the concept of bitcoin and other key concepts, namely: virtual currency and digital currency. The author concludes that it is necessary to create a non-governmental self-regulatory organization supported by the State in order to protect the interests of the cryptocurrency business. Since legal regulation of cryptocurrencies is global in its nature, the article examines the foreign experience of legal regulation of cryptocurrencies and their types.

Prospects for the Development of Cryptocurrency Regulation in Singapore

In this article are discussed the main prospects of development of cryptocurrency in Singapore, as it is widespread and used all over the world. The article covers the main points for the regulation of the cryptocurrency. There is a wide range of cryptocurrency trading platforms, and most of them are located in different countries, which leads to significant differences in terms of regulation by the authorities and, accordingly, different rules for users and companies. Several exchanges allow trading derivatives. A more detailed review would give a correct impression of the current situation in the world in terms of regulation of cryptocurrencies and future trends. Cryptocurrencies continue their development; the number of users of cyber money is steadily growing. The popularity of bitcoin has generated the creation of other cryptocurrencies that are developing along with bitcoin, but their popularity and capabilities are much less. In some countries, including Russia, the government started warning people that investing in “cash” equivalents could lead to losses in case if there is a collapse of cryptocurrency (bitcoin).

Perspective Cryptocurrency Projects Supported by China

In this article are discussed the most perspective cryptocurrency and blockchain projects that China is investing in. After the regulations regarding cryptocurrencies that is put forth by China, the Chinese government decided to create several financial bodies to regulate and develop the cryptocurrency. Despite the strict regulation of cryptocurrencies, China has been significantly investing in blockchain projects. China has developed the Digital Currency Research Institute (DCRI) of the People’s Bank of China — a research body under the aegis of PBOC that focuses on the research and development of digital currencies and blockchain-related technologies. China actively supports more than 40 platforms, mostly in such fields as AI, Deep Learning and Software. The Chinese government has shown a positive attitude towards blockchain technology. Blockchain and cryptocurrency come hand-in-hand (except a private chain where a token is unnecessary). In the nearest future, China plans to introduce a blockchain to the most different spheres. For this purpose, there will even double the volume of investment to 3 billion dollars, since the second quarter of 2018. “This technology can transform many spheres of our life. As soon as in the country pursue powerful technological policy, it is sure that even more companies will begin to work in the field of the blockchain” —the partner of the international consulting company PwC in Shanghai Chongg Chong Yin commented to journalists.

Criptomonedas, economía y derecho

En este artículo sugiero que mientras el derecho tradicional no sea capaz de generar una respuesta coherente y transversal para regular las criptomonedas, y en general, para regular los bienes virtuales, la regulación que busque evitar su mal uso debiera ser la mínima necesaria para cumplir con el objetivo de política estrictamente definido. Todavía no hemos desarrollado las categorías conceptuales adecuadas para regular un fenómeno tan nuevo y, además, desde un punto de vista práctico y financiero, las criptomonedas no han alcanzado importancia suficiente para justificar el esfuerzo regulatorio que las monedas tradicionales demandan. Mi argumento se suma a otras voces que han advertido que las sugerencias por regular las criptomonedas, más que inhibir su desarrollo, corren el riesgo de introducir regulaciones inefectivas y superficiales, que sin embargo pueden dañar a actores particulares, como los nuevos adoptantes y los que quieran experimentar con las tecnologías relacionadas.

Global Currencies and Domestic Regulation: Embedding through Enabling?

This article identifies cryptocurrencies and other virtual currencies as global currencies that could have a major impact on national jurisdictions. Regulation concerning cryptocurrencies can be described in the terms of the ‘double movement’ that Karl Polanyi identified for the expansion of the market society in the 19th and 20th centuries. Cryptocurrencies have been developed by anti-establishment individuals and groups, and other opponents of the global financial system that – in Polanyi’s terms – belong to a collectivist counter-movement. The effect they have produced, though, is rather to expand global markets and the market system. This has spurred a counter-movement to the counter-movement, or what could be called the ‘anti-countermovement.’ The response of the anti-countermovement to the expansion and influence of the global currencies is paradoxical if not schizophrenic. The anti-countermovement treats global currencies both as currencies and as a technology. This has led to various regulatory measures in different jurisdictions. When viewed as currency, cryptocurrencies are regulated both as money and commodities leading to an indifferent approach to their regulation or a command-and-control approach or various intermediate approaches. When viewed as a technology, different jurisdictions have taken an enabling approach to the regulation of cryptocurrencies by establishing ‘innovation hubs’ and ‘regulatory sandboxes’ for FinTech companies. This paper concludes by discussing the dangers of embedding cryptocurrencies through enabling them, namely the problem of more finance, and possibly an internal clash of domestic agencies. The way to mitigate the dangers of embedding through enabling is by regulating the new cryptocurrency intermediaries.

Analysis of The Probability of Money Laundering Crimes toward the Development of Crypto-currency Regulations in Indonesia

Cryptocurrency is done instantly, so it does not require a third party (the central bank as the holder of moneter policy). All transactions in the Cryptocurrency system will be collectively verified in a private network. Today Cryptocurrency transaction activities are prohibited in Indonesia in line with the issuance of Bank Indonesia Regulation number 18 of 2016 concerning the Implementation of Payment Transaction Processing. Taking into account that the clarity of the Cryptocurrency system is not very good and is still in the government assessment stage even though it is noted that the exchange rate of virtual currencies is very high, in 2017 the price of one Bitcoin is closed equivalent to 4,224 US dollars or around Rp. 56,000,000, with market capitalization (Marketcap) for 71.5 billion US dollars, equivalent to Rp. 954 trillion which makes investors choose to challenge inventories on Cryptocurrency or digital currency rather than investing in safe havens such as gold or bonds. This study will discuss how Cryptocurrency can provide potential money laundering criminal offenses in the form of digital transaction systems and how the regulations are developed. Given the legal conditions for proving money laundering crimes originating from criminal acts of corruption often find it difficult, especially against Cryptocurrency as a currency that is not recognized in Indonesia and the peer-to-peer nature that increasingly makes Cryptocurrency very private and difficult to trace.

What drives cryptocurrency acceptance in Malaysia?

Despite cryptocurrency is deemed as a core evolution to the field of financial technologies, its legal status remains debatable over the globe. While the Malaysian government has launched cryptocurrency regulations in 2019, it is expected cryptocurrency will still be around in the near future. However, there is a lack of cryptocurrency acceptance study in Malaysia context. The primary goal of this study is to propose a research model that combines cryptocurrency variables with the constructs embedded in the Unified Theory of Acceptance and Use of Technology2 (UTAUT2) to investigate the influencing factors of cryptocurrency acceptance in a developing country context.

Working Paper 28: Regulating cryptocurrencies: challenges and considerations

Cryptocurrency regulations are developing fast. Across the world, authorities are reacting to the emerging threat posed by criminals using new payment methods to conceal and launder the proceeds of their crimes.
 However, as the application of anti-money laundering/combating the financing of terrorism (AML/CFT) due diligence requirements becomes stricter and more entities implement preventative measures, criminals are constantly looking elsewhere for potential havens for their illicit activities.
 This Working Paper offers an insight into some potential consequences of changes in AML/CFT legislation in relation to cryptocurrency exchange services and virtual assets.

Cryptocurrency regulation in the BriCs Countries and the eurasian economic union

This article presents the results of a comparative analysis of the legislative approaches to the regulation of cryptocurrencies in the BRICS countries and the Eurasian Economic Union. During the analysis, regulatory legal acts and draft laws, including material on judicial practice, of the Russian Federation, China, India, Brazil, the Republic of South Africa, the Republic of Belarus, Kazakhstan, Kyrgyzstan and Armenia were studied. The use of a comparative-legal method makes it possible to develop recommendations about the development of legislation on the circulation of cryptocurrencies within the BRICS countries. The assessment of the experience of EEU countries, and especially that of the Republic of Belarus, has great importance since the Russian Federation is a member country of both the EEU and BRICS. Comparative analysis was achieved by taking into account such key points as the existence of a regulatory framework, regulation of transaction taxation and counteracting the legalization of profits from crime. The results of the analysis are presented for each country separately and then systematized in the form of an analytical table. Based on the analysis, three approaches to the regulation of cryptocurrencies are identified: conservative, liberal and neutral. The study of the experiences of the BRICS and EEU countries allowed the authors to conclude that these countries need to formulate similar requirements for the regulation of cryptocurrencies so as to avoid the migration of investment and capital to other countries which have a more liberal approach.

Following the cyber money trail

PurposeThe purpose of this paper is to show how global regulation of cryptocurrencies and other cybercurrencies can assist in addressing the challenges of attribution when investigating ransomware attacks and other types of cybercrime using these payment methods.Design/methodology/approachA literature review, looking at current academic research and discourse on the topic cryptocurrency regulation, is conducted to highlight current thinking and perceived difficulties in implanting a global regulatory framework. In addition, the research explores how governments have addressed the risks posed by cryptocurrencies and how regulation has been implemented. The research focuses on the regulatory approaches of Australia, Europe and the Americas to determine whether they could feasibly address the risks posed by cryptocurrencies and be implemented on a global scale.FindingsTo date, few sustained efforts have been made to regulate Bitcoin or other cybercurrencies. Where regulation has been introduced, it has often proven too costly to implement, thereby, stifling Bitcoin industry growth, or too ad hoc to function effectively. These regulatory pitfalls are substantiated by the continuing difficulty faced by law enforcement agencies, in identifying individual Bitcoin users and separating those that are using them for nefarious purposes from those that are using them for legitimate ones. These challenges appear to grow exponentially when it comes to prosecuting criminals for Bitcoin-related offences, due to the enormous lack of agreement within the justice system of most countries as to the appropriate legal definition for Bitcoin. This research highlights three characteristics that will be vital to the success of any global regulatory framework. These are consistency, clarity and cost-effective implementation. A regulatory framework for Bitcoin that lacks any one of these elements will fail to meet the requirements of every stakeholder in the regulatory process. A framework that is too costly to implement will stifle fintech innovation, subsequently depriving national economies of the multitude of potential benefits promised by fostering fintech entrepreneurship. Equally, a framework that is inconsistent will hamper the global cooperation necessary to combat Bitcoin-related crime.Originality/valueThis research evaluates research, discourse and regulatory responses from academic and governmental sources and discusses how a global response to cryptocurrency regulation will help address the growing problem of attribution when it comes to ransomware attacks, which has experienced a considerable spike in recent months.

СМАРТ-КОНТРАКТ ЯК ФОРМА ЦИВІЛЬНО-ПРАВОВОГО ДОГОВОРУ

Development of information technologies, cryptocurrencies and technology of distributed networks has caused the appearance of smart con- tracts as new types of civil contract. They have been widely used in recent years in such areas as initial coins offering (ICO), financial sector, inter- national trade and public services. At the same time the legal status and legal regulation of smart contracts are uncertain. These uncertainties cause many legal risks of smart-contractsutilization. The purpose of this article is to find out the conception of smart contract as a form of civil contract, to research its legal status and legal regula- tion issues and to develop proposals for the improvement of legal regulation of smart contracts and cryptocurrencies in Ukraine. By its legal nature a smart contract is a digital form of a civil contract realized in programming code automatically executed in a distributed network. Like a civil contract, smart contract has such elements as parties, subject and essential terms of the contract. The legal force of a smart contract depends on whether it includes the fundamental features of a civil contact, such as evidence that parties have intention to create legal relations, understandabil- ity of contract conditions and possibility to perform the terms of the contract under duress. The main advantages of a smart contract are its ability to significantly accelerate and reduce costs of the transaction and guarantee the fulfillment of contract terms regardless of the contractual parties' and third parties' will. The main risks of a smart contract are uncertainty of legal status of a smart contract and cryptocurrencies as a means of payment, complexity of expressing the contact terms in a mathematical algorithm, risk of software bugs and hacking attack. To solve the problems of legal regulation of smart contracts in Ukraine it is necessary to change the legislation in order to settle the legal status of cryptocurrencies and recognize a smart contract as a form of a civil contract. It is necessary to identify parties of the smart contract, confirm their agreement on the terms of the smart contract by using digital electronic signature. A smart contract should be supplemented by text application containing the es- sential terms of the contract which will have legal force in trail. It is necessary to implement blockchain technology in the state registers and pro- vide legal ability to make adjustments in the registers automatically for the performance of smartcontracts.

To the Question of Criminological Security in the Use of Cryptocurrency

The Author examines various approaches to the definition of cryptocurrency, the issues of legislative regulation of cryptocurrency in Russia, proposes measures to counter crimes using cryptocurrency. Based on the study, the Author concludes that in order to regulate cryptocurrency transactions, as well as in order to create a uniform judicial practice in cases related to cryptocurrency, it is necessary to create a unified regulatory framework on the subject matter. The Author proposes to legislatively fix the definition of cryptocurrency, the conditions for its issuance, storage and execution of transactions with it, as well as the circle of persons authorized to carry out operations to create, exchange, etc. with cryptocurrency; conduct training of specialists in the field of cryptocurrency through training courses, lectures, seminars, conferences, etc., including abroad, as well as to ensure the exchange of experience between experts in the field of cryptocurrency; create a technical base in law enforcement to track cryptocurrency transactions; to ensure the formation of scientific schools in the field of cryptocurrency.

Legal regulation of the turnover of cryptocurrencies in foreign countries and in the Russian Federation: possible approaches

The paper presents a comparative analysis of approaches to the legal regulation of cryptocurrency transactions in various foreign States. It is noted that neither in the doctrine nor in the legislation of various foreign countries there are no common solutions, even on the issue of applicable terminology. In this regard, the analysis of the selected regimes of cryptocurrency regulation in the main States is carried out. The prospects for the introduction of the Russian Federation's own "oil and gas" cryptocurrency are still uncertain. At the same time, there are proposals on a possible direction of regulation of cryptocurrency turnover by making appropriate changes to the domestic currency legislation.

The determination of legal status of cryptocurrencies and questions of economic and legal support for their use in ukraine

The article considers modern approaches to the determination of the legal status of Bitcoin and other cryptocurrencies in order to create effective economic and legal mechanisms for their regulation. The main tendencies in the regulation of cryptocurrencies by the international financial regulators and leading countries of the world are analyzed, and also it is proposed to unify the common features for all cryptocurrencies. A comparative analysis of the draft Law of On the Cryptographic Currency in Ukraine and the Draft Law of On Stimulation of the Cryptographic Market and its Derivatives in Ukraine was conducted, and ways of optimizing the domestic legislation on legal regulation of cryptocurrency were proposed. It is defined that the cryptocurrencies’ use drawbacks are, above all, the risks associated with their lack of real provision of them. Therefore, in the event of certain emergencies (new economic crises, wars, prohibitions and restrictions on the use at the state level), the cost of screaming on the stock market can instantly turn from liquid asset to soap bubble. The advantages include the following factors: instantaneous calculation speed (from several seconds to several minutes); no commission for committing transactions; anonymity of settlements; high degree of security of operations; irreversibility of payments; no need to convert to the currency of the country of calculation. It is determined that the phenomenon of cryptocurrencies is a completely new phenomenon that arose as a result of the evolutionary development of electronic money.

Prospects for Using Cryptocurrency in the Economy of Kazakhstan and the Attitude of the National Bank

The modern stage of the evolution of money is associated with the development of virtual economy as part of the global economic system based on interactive business on the ground of information technologies. The development of new forms of money is due to the activation and deepening of the information sphere and information society. Due to such conditions and the impact of technological innovation, economic science acquires a new meaning; significant changes take place in all spheres of economic activity, including the financial sector. The manifestation of such changes is the transfer of transactions into the electronic format, the emergence of new means of payment, the latest payment instruments and systems. The paper considers the main features of cryptocurrencies, with attention to the most popular and widespread of them - Bitcoin. Based on the expert survey and literature, the attitude of the central banks of foreign countries and the National Bank of Kazakhstan regarding the recognition and regulation of cryptocurrency have been analyzed, and conclusions about the prospects for using cryptocurrency in Kazakhstan have been made.

ПРО СТАН ПРАВОВОГО ЗАБЕЗПЕЧЕННЯ ОБІГУ КРИПТОВАЛЮТ В УКРАЇНІ: ПОГЛЯД КРІЗЬ ПРИЗМУ ЗАРУБІЖНОГО ДОСВІДУ

The development of information technologies is accelerated in the modern world. The digitization of socio-economic relations is carried out on the basis of peer-to-peer blockchain technology. Bitcoin is a cryptographic protocol. The article shows that, to date, there is no common understanding of Cryptocurrency, in some sources they are treated as currency and other goods or raw materials in other. At this moment, cryptocurrency in Ukraine is not regulated at all. This article discusses the potential legal classification of Bitcoin and the consequences thereto. Bitcoin has been, and continues to be, used by some for the purchase of illegal substances and in furtherance of crimes. Nonetheless, Bitcoin possesses significant economic upside over traditional currencies and methods of transaction online. The National Bank of Ukraine (NBU) has not yet recognized bitcoin or other encrypted currencies. Several bills to regulate encrypted money have been submitted, but none has yet been passed. The Ukrainian parliament has been actively trying to find a solution for creating a legislative and regulatory framework specific to the cryptocurrency industry. Ukrainian draft laws give their own definition of crypto-currency, mining and other specific terms; stipulate those who have the right to engage in mining, how the activities of exchanges are regulated, and the attendant moments, such as legal responsibility and specific taxation. Yet, the proposed legislation has not yet been passed into the law. Ukraine should monitor world trends and not miss a chance to use new technologies and innovations in the financial sector. On the basis of the analysis of domestic and foreign practices, a number of non-regulated by Ukrainian law of the creation and circulation of cryptocurrencies have been identified by the law of Ukraine, proposed ways of resolving issues of determining their legal nature and legal regulation. The situation regarding the definition of legal status of cryptographic goods in foreign countries and Ukraine is analyzed. The main points to be solved in the course of approval of the right regulation of cryptocurrencies in Ukraine are determined. REFERENCES Liashenko V.I., Vyshnevskyi O.S. Tsyfrova modernizatsiia ekonomiky Ukrainy yak mozhlyvist proryvnoho rozvytku: monohrafiia. Kyiv, 2018 [in Ukrainian]. Cryptocurrency Market Capitalizations. Top 100 Cryptocurrencies by Market Capitalization. URL: https://coinmarketcap.com Ponsford M.A Comparative Analysis of Bitcoin and Other Decentralised Virtual Currencies: Legal Regulation in the People’s Republic of China, Canada, and the United States. Hong Kong Journal of Legal Studies. 2015. Vol. 9. URL: http://ssrn.com/abstract=2554186 Kryptovaliuta: Zibraty po kryptakh. Kryptofakhivtsi roziasniuiut yurystam znachennia naiposhyrenishykh sliv “latyny maibutnoho” kryptomovy. Za materialamy vydannia “Ukrainskyi Yuryst”. URL: http://axon.partners/uk/blog/cryproalphabet/ [in Ukrainian]. Nermin Hajdarbegovic. Japan Makes First Bitcoin-Related Drug Arrest. Coindesk. May 9, 2014. URL: . https://www.coindesk.com/japan-makes-first-bitcoin-related-drug-arrest Pravove rehuliuvannia kryptovaliutnoho biznesu. Axon Partners, ForkLog Research. URL: http://axon.partners/wpcontent/uploads/2017/02/Global-Issues-of-Bitcoin-Businesses-Regulation.pdf [in Ukrainian]. The Federal Reserve System’s semiannual monetary policy report to the Congress. The U.S. Government Printing Office. September 17, 2015. URL: http://www.cftc.gov/PressRoom/PressReleases/pr7231-15 Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (Text with EEA relevance). Official Journal of the European Union. L 267. 10.10.2009. P. 7—17. Court of Justice of the European Union PRESS RELEASE No 128/15. URL: https://curia.europa.eu/jcms/upload/docs/application/pdf/2015-10/cp150128en.pdf O razvitii tsifrovoy ekonomiki: Dekret Prezidenta Respubliki Belorus ot 21.12.2017 No. 8. URL: http://president.gov.by/ru/official_documents_ru/view/dekret-8-ot-21-dekabrja-2017-g-17716/ [in Russian]. V instytuti Patona pratsiuvala nezakonna fabryka Bitcoin. Informatsiinyi Aktsent. URL: https://www.infa.ua/v-insty-tutipatona-pratsyuvala-nezakonna-fabry-ka-bitcoin/ [in Ukrainian]. Prokuratura y SBU vyluchyly v Kyievi 400 bitkoin-ferm. Informatsiinyi Aktsent. URL: https://www.infa.ua/v-insty-tutipatona-pratsyuvala-nezakonna-fabry-ka-bitcoin/ [in Ukrainian]. Pro obih kryptovaliuty v Ukraini: proekt Zakonu Ukrainy vid 06.10.2017 No. 7183. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=62684 [in Ukrainian]. Pro stymuliuvannia rynku kryptovaliut ta yikh pokhidnykh v Ukraini: proekt Zakonu Ukrainy vid 10.10.2017 No. 7183-1. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=62710 [in Ukrainian].

Will Regulation Change Cryptocurrency Protocols?

Cryptocurrencies have entered the economy as alternative money, as speculation objects, and as utility tokens for innovative service-platforms. Cryptocurrencies are increasingly scrutinized by regulators, and the literature on the regulation of cryptocurrencies is emerging. In this paper, it is asked how regulatory efforts may interfere with the core of the cryptocurrencies – their protocols as enforced by the decentralized operators. It is found that regulations are likely to induce protocol changes by interfering with the operators' choices. Regulation may induce the development of regulatory-compliant cryptocurrency protocols, but also protocols specially designed to circumvent regulation.

MODERN CRYPTOECONOMICS: INTERNATIONAL LEGAL REGULATION

Due to increasing interest around the world about crypto-currency there is a growing need among authorities for understanding the approaches to regulate the new phenomenon. Analysis of international experience in the regulation of crypto-currencies and other cryptoactive assets shows that regulators are now trying to reduce the risks associated with the violation of public interests - the risks of erosion of the tax base and money laundering and terrorist financing. The article provides information on the approaches of the EU, the US and other OECD countries to the regulation of crypto-currencies and other crypto assets, as well as possible proposals for regulators in Russia.

The Essential Principles for an Active Securities Regulation of Cryptocurrency

Securities regulators in the world do not actively regulate cryptocurrency yet. For an effective, active securities regulation, I introduce four novel propositions for the regulators. First, the cryptocurrency technology and its peer-to-peer network are meaningless without the activities of the involved people. Second, the private key of cryptocurrency should be utilized as an identification tool. Third, the active regulation should include a mandatory reporting provision of cryptocurrency transactions and balance. Fourth, the transaction size and ledger length of cryptocurrency should be used as regulatory risk measures. My propositions are founded on a combined analysis of law, finance, math, and technology. Then, I discuss a possible unification of currencies across the globe, with the potential to establish an international cryptocurrency authority.