The digital currency challenge for the regulatory regime
Abstract
There are some puzzles in digital currency matter. First, finding the best definition. Digital currencies have specific features that make necessary to mention in its definition. The second puzzle is the function of Internet. It is important because the Internet is the vehicle for the good functioning of digital currency schemes. The network provides all the facilities to digital currency, but it also may be a place for criminal activity. The third puzzle is the relation of digital currencies and the e-commerce. The electronic commerce is an antecedent of virtual currencies. The necessity to make the payment quicker and easier makes possible the growth of virtual currencies. Finally, there is the puzzle of the regulation. A complete regulation does not exist in the digital area. It is the nature of the Internet. It is a place where there are no financial rules. Criminal activity and improper use of Internet will increase over time.Keywords:
Digital currency – bitcoin – electronic money – legal challenges – e-commerce, digital currency, bitcoin, electronic money, legal challenges, e-commerceReferences
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Bitcoin Fees Web Page (2015). «Bitcoin Fees | Bitcoin Transaction Fees Explained». Accessed December 3, 2015. Available at http://bitcoinfees.com/.
Bitcoin Project (2015). «Bitcoin for Individuals - Bitcoin». Accessed November 9, 2015. Available at https://bitcoin.org/en/bitcoin-for-individuals.
Bitcoin Project (2015). «FAQ | Bitcoin.com» Accessed November 9, 2015. Available at https://www.bitcoin.com/faq.
Davis, Joshua (2011). «The Cripto-Currency: Bitcoin and Its Mysterious Inventor» The New Yorker, October 10. Available at http://www.newyorker.com/magazine/2011/10/10/the-crypto-currency.
Davison, Alan (2009). The Law of Electronic Commerce. Cambridge University Press.
European Central Bank (2012). «Virtual Currency Schemes». Available at https://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf.
European Central Bank (2015). «Virtual Currency Schemes - a Further Analysis». Available at https://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemesen.pdf.
Financial Action Task Force (2014). «Virtual Currencies: Key Definitions and Potential AML/CFT Risks». Available at http://www.fatf-gafi.org/publications/methodsandtrends/documents/virtual-currency-definitions-aml-cft-risk.html.
Financial Action Task Force (2015). «Guidance for a Risk-Based Approach to Virtual Currencies» Available at http://www.fatf-gafi.org/publications/fatfgeneral/documents/guidance-rba-virtual-currencies.html.
Fullenkamp, Connel, and Saleh Nsouli (2004). «Six Puzzles in Electronic Money and Banking» International Monetary Fund. Available at http://www.imf.org/external/pubs/ft/wp/2004/wp0419.pdf.
Gabriel, Henry (2006). «The United Nations Convention on the Use of Electronic Communications in International Contracts: An Overview and Analysis». Uniform Law Review, 11.
Grinberg, Ruben (2012). «Bitcoin: An Innovative Alternative Digital Currency». Hastings Science & Technology Law Journal, 159-208.
Hett, William (2009). «Digital Currencies and the Financing of Terrorism». Richmond Journal of Law & Technology, 15.
ICANN (2015). «Resources». Available at https://www.icann.org/resources/pages/welcome-2012-02-25-en. Accessed December 23, 2015.
Katz, Jonathan (2010). Digital Signatures. Springer.
Kien-Meng Ly, Matthew (2014). «Coining Bitcoin’s ‘Legal-Bits’: Examining the Regulatory Framework for Bitcoin and Virtual Currencies». Harvard Journal of Law & Technology, 27 (2).
Kirby, Patrick (2014). «Virtually Possible: How to Strengthen Bitcoin Regulation Within the Current Regulatory Framework». North Carolina Law Review, 93 (1).
Kohl, Uta (2007). Jurisdiction and the Internet. Cambridge University Press.
Library of Congress of United States of America (2014). «Regulation of Bitcoin in Selected Jurisdictions». Available at http://www.loc.gov/law/help/bitcoin-survey/.
Loubser, MM, and Derick Swart (1999). «Electronic Money in South African Law». Stellenbosch Law Review, 10.
Mik, Eliza (2010). «Evaluating the Impact of the UN Convention on the Use of Electronic Communications in International Contracts on Domestic Contract Law. The Singapore Example». Chinese Yearbook of International Trade Law, 28: 43-65.
Mullan, Carl (2014). Digital Currency Challenge: Shaping Online Payment System through US Financial Regulations. Palgrave Macmillan.
Murphy, Edward, Maureen Murphy, and Michael Seitzinger (2015). «Bitcoin: Questions, Answers, and Analysis of Legal Issues». Congressional Research Service.
Murray, Andrew (2010). Information Technology Law. Oxford University Press.
Nakamoto, Satoshi (2009). «Bitcoin: A Peer-to-Peer Electronic Cash System». Available at https://bitcoin.org/bitcoin.pdf.
Nakamoto, Satoshi (2009). «Bitcoin. P2P Money». Available at https://bitcoin.org/en/.
Negurita, Octav (2014). «Bitcoin - Between Legal and Financial Performance». Contemporary Readings in Law and Social Justice, 6.
Prins, J.E.J., P.M.A. Ribbers, H.C.A. Van Tilborg, A.F.L. Veth, and J.G.L. Van Der Wees (2002). Trust in Electronic Commerce, The Role of Trust from a Legal, an Organizational and Technical Point of View. The Hague: Kluwer Law International.
Proctor, Charles (2012). Mann on the Legal Aspect on Money. Oxford University Press.
Reed, Chris (2004). Internet Law. Cambridge University Press.
Reed, Chris (2012). Making Laws for Cyberspace. Oxford University Press.
Tucker, Peter C. (2009). «Digital Currency Doppelganger: Regulatory Challenge or Harbinger of the New Economy?» Cardozo Journal of International and Comparative Law, 17: 589.
Tyree, Alan (1997). Digital Cash. Butterworths.
Velde, François (2013). «Bitcoin: A Primer». The Federal Reserve Bank of Chicago.
Wang, Faye (2010). Law of Electronic Commercial Transactions. New York: Routledge.
