Issues of regulating cryptocurrency and control over its turnover: international experience
Keywords:
cryptocurrency, crypto asset, digital currency, cryptocurrency turnover, legal status of cryptocurrencies, legal regulation of cryptocurrencies.
Abstract
The article deals with an important and relevant topic – the definition of the concept and essence of cryptocurrencies, the study of the problems of their legal regulation, the rationale for control over their turnover, as well as the analysis of ways to counter money laundering that involves cryptocurrency. The authors emphasize that measures taken exclusively at the state level are not enough to create an effective, integrated and comprehensive system for regulating the legal status of cryptocurrencies. Therefore, international cooperation and the strengthening of cooperation between various states in the field of cryptocurrency regulation is important.
The authors analyze the scientific doctrine regarding the essence of cryptocurrency. It was found out that there was no single approach to the definition of “cryptocurrency” among scientists. Moreover, cryptocurrencies in various laws of the world have different status.
The authors used general scientific and special scientific methods, which provided an objective analysis of the purpose of the study. The research methods were used in interconnection and interdependence, which ensured the comprehensiveness and completeness of the research, as well as the validity of the obtained scientific results. The authors have determined states where cryptocurrency has an official status, is at the initial stage of legal regulation or completely prohibited at the state level.
The relevance of the research consists in the actual absence of the legal framework for the regulation of cryptocurrencies, which is conditioned by the novelty of this phenomenon and the problems related to its functioning. The authors proposed their own definition of cryptocurrency based on its main features.
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References
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Muzychuk, O.M., Bezpalova, O.I., Rudoi, K. M., Kalenichenko, L.I. (2020). International experience of ensuring public safety and order by police forces during mass events and the possibility of its application in Ukraine. Amazonia investiga. Vol. 9 Núm. 25 / pp. 493-499. https://amazoniainvestiga.info/index.php/amazonia/article/view/1099
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Sorokina, Y. S. (2018) Bitcoin: an innovative currency or an instrument of financial crime? Political Internet electronic scientific journal of the Kuban State Agrarian University, No. 131, p. 1301-1310. DOI http://ej.kubagro.ru/2017/07/pdf/108.pdf
Stukalo, N. V., Krasnikova, N. O., Balash, O. O. (2018). Cryptocurrency functioning in the global economy // Visn. Dnipro. Univer. Ser. Worlds Economy and International Economic Vidnosy’ny’.2018, 10 (26), S. 109–119 doi 10.15421/181811. Recovered from http://www.dnu.dp.ua/docs/visnik/fmecon/program_5c0e995b6ea3f.pdf
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Tax treatment of crypto-currencies in Australia-specifically bitcoin (2014). Australian Taxation Office. Recovered from https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia---specifically-bitcoin/
Zenin, S., Kuteynikov, D., Izhaev, O., & Yapryntsev, I. (2019). Applying Technologies of Distributed Registries and Blockchains in Popular Voting and Lawmaking: Key Methods and Main Problems. Amazonia Investiga, 8(20), 330-339. Retrieved from https://www.amazoniainvestiga.info/index.php/amazonia/article/view/147
Ahmed, A., Kamaljeet, S. (2019). Framework and Model for Cryptocurrency Innovation and its Impact on Economic Transformation // International Journal of Innovation in the Digital Economy (IJIDE)10(4) DOI: 10.4018/IJIDE.2019100103
Andreeva, G.N. (2018). Current problems of the legal regulation of cryptocurrencies in the Russian Federation. (REVIEW) // Social and human sciences. Domestic and foreign literature. Ser. 4, State and Law: Review Journal. No. 2, 60-64.
Angel, J. (2015). The Ethics of Payments: Paper, Plastic, or Bitcoin? Journal of Business Ethics, 3, 603–611.
Anokhin, N. V., Shmyreva, A. I. (2018). Cryptocurrency as an instrument of the financial market / Ideas and ideals journal No. 3, Volume 2. Recovered from https://cyberleninka.ru/article/n/kriptovalyuta-kak-instrument-finansovogo-rynka
Australia Income Tax Assessment Act (1997). Recovered from https://www.legislation.gov.au/ Details/C2019C00049/Html/Volume_6
Bank of Russia review on cryptocurrencies. (2017). ICOs and approaches to their regulation. Moscow. December 2017 // Recovered from http://www.cbr.ru/content/document/file/36009/rev_ico.pdf
Berentsen, A., Schar, F. (2018). The Case for Central Bank Electronic Money and the Non-case for Central Bank Cryptocurrencies. Federal Reserve Bank of St. Louis. Recovered from https://research.stlouisfed.org/publications/review/2018/02/13/the-case-for-central-bank-electronic-money-and-the-non-case-for-central-bank-cryptocurrencies
Bill of the Russian Federation On Digital Financial Assets, (2018). Bill of the Russian Federation No. 419059-7 About digital financial assets. Recovered from https://sozd.duma.gov.ru/bill/419059-7
Carstens, A. (2018). Money in the Digital Age: What Role Central Banks? BIS, Recovered from https://www.bis.org/speeches/sp180206.htm Coindesk. (2014). Central Bank of Colombia Says ‘Bitcoin is Not a Currency’. Recovered from https://www.coindesk.com/central-bank-colombia-says-bitcoin-currency
Draft Law on Amendments to the Tax Code of Ukraine and some other laws of Ukraine on taxation of operations with crypto-assets. (2019). Verkhovna Rada of Ukraine. Recovered from http://w1.c1.rada.gov.ua/ pls/zweb2/webproc4_1?pf3511=67423
Dudnikov, D.V. (2018). Problems of regulation of relations on the use of cryptocurrencies in the Russian Federation // Electronic Network Political Journal “Scientific Works of KUBSTU”. Kuban State Technological University (Krasnodar). No. 6. - S. 119-123.
Dvulit, Z., Peredalo, Kh., Tylipska, R., Terno, R. and Stubel, R. (2019), “Cryptocurrency: state and trends of development”, Ekonomika ta derzhava, vol. 1, pp. 10–14. DOI: 10.32702/2306-6806.2019.1.10
Efimova, L. G. (2020). Sources of legal regulation of public relations in cyberspace // Lex Russica. Volume 73 No. 3 (160), 114-120.
Egorova, M, A. (2019). The concept and legal regulation of cryptocurrency in foreign countries. Greater Eurasia: Development, Security, Cooperation. Yearbook. Vol. 2. Part 1 / RAS INION. Sep. scientific cooperation; Repl. ed. IN AND. Gerasimov. Recovered from https://cyberleninka.ru/article/n/ponyatie-i-pravovoe-regulirovanie-kriptovalyuty-v-zarubezhnyh-stranah/viewer
Fenwick, M. and Vermeulen, E.P.M. (2018). Technology and Corporate Governance: Blockchain, Crypto, and Artificial Intelligence. Lex Research Topics in Corporate Law & Economics Working Paper No. 2018-7; European Corporate Governance Institute (ECGI) - Law Working Paper No. 424/2018. Recovered from http://dx.doi.org/ 10.2139/ssrn.3263222
Financial Services Commission (2018). Financial measures to curb speculation in cryptocurrency trading. Recovered from https://www.iosco.org/library/ico-statements/Korea%20-%20FSC%20-%2020180123%20-%20Financial%20Measures%20to%20Curb%20Speculation%20in%20Cryptocurrency%20Trading.pdf
Gervais, A. (2014). Is Bitcoin a Decentralized Currency. IEEE Security & Privacy, 12, 256–270.
Huberman, G., Leshno, J. D., Moallemi, C. (2017). Monopoly without a monopolist: An Economic analysis of the bitcoin payment system. Bank of Finland Research Discussion Papers 27. Recovered from https://econpapers.repec.org/ paper/cprceprdp/12322.htm
Information Paper for the Payments System Board. (2013). Reserve Bank of Australia. Recovered from https://www.rba.gov.au/ publications/annual-reports/psb/1999/ payments.html
Klochko, A. N., Kulish, A. N., Reznik, O. N. (2016). The social basis of criminal law protection of banking in Ukraine. Russian journal of criminology. DOI: 10.17150/2500-4255. 2016.10(4).790-800.
Kudryashova, E. V (2018). Cryptocurrency within the legal framework. Finance and Credit. Vol. 24, Issue 10 pp.2175–2183. Recovered from https://www.fin-izdat.ru/journal/fc/detail.php?ID=73526
Letter of the National Bank of Ukraine (2014). Ukraine Legislation. Dated 08.12.2014 № 29-208 / 72889. Recovered from http://search.ligazakon.ua/l_doc2.nsf/link1/lb14375.html?_ga=2.138709434.86257076.1586952364-470601430.1586952364
Letter of the National Bank of Ukraine (2018) Ukraine Legislation. dated 22.03.2018 № 40-0006/16290. Recovered from http://search.ligazakon.ua/l_doc2.nsf/link1/lb18067.html?_ga=2.84632080.86257076.1586952364-470601430.1586952364
Lexology, (2016). Bit Coins: Decrypting the Currency. Recovered from https://www.lexology.com/library/detail.aspx?g=d5826e83-ff04-4c09-98a1-82eb291c6196
Lexology. (2016). The brave new world of Bitcoin — Austria // Recovered from https://www.lexology.com/library/detail.aspx?g=a7d1807c-2ae8-43cc-94bf-1b1d6dda984d
Muzychuk, O.M., Bezpalova, O.I., Rudoi, K. M., Kalenichenko, L.I. (2020). International experience of ensuring public safety and order by police forces during mass events and the possibility of its application in Ukraine. Amazonia investiga. Vol. 9 Núm. 25 / pp. 493-499. https://amazoniainvestiga.info/index.php/amazonia/article/view/1099
On the classification of operations with “virtual currency / cryptocurrency” Bitcoin as transactions in foreign currency trading, as well as the grounds for crediting to a current account in foreign currency an individual foreign currency received from the sale of Bitcoin. Recovered from http://search.ligazakon.ua/l_ doc2.nsf/link1/lb14375.html?_ga=2.138709434.86257076.1586952364-470601430.1586952364
Polyakova, Y. A., Vorobyova, O., Chertakova, E., Olinder, N., & Mazur, N. (2019). Revisiting the formation of the legal status of cryptocurrency in the Russian legislation. Amazonia Investiga, 8(22), 711-718. Retrieved from https://www.amazoniainvestiga.info/index.php/amazonia/article/view/824
Reuters. (2017). Cryptocurrencies can never drive out money — ECB’s Constancio. Central Banks. Recovered from https://www.reuters.com/article/uk-ecb-currency/cryptocurrencies-can-never-drive-out-money-ecbs-constancio-idUSKBN1D92CR
Sannikova, L. V., Pescherov, A. I. (2018) Legalization of cryptocurrency in Russia: problems and prospects // Property relations in the Russian Federation. 2018. No 9 (204). Recovered from https://cyberleninka.ru/article/n/legalizatsiya-kriptovalyutyv-rossii-problemy-i-perspektivy
Shin, L. (2016). Canada Has Been Experimenting With A Digital Fiat Currency Called CAD-COIN. Forbes. Recovered from https://www.forbes.com/sites/laurashin/2016/06/16/canada-has-been-experimenting-with-a-digital-fiat-currency-called-cad-coin/#1566adf946a4
Sinel’nikova-Muryleva, E V., Shilov, K. D., Zubarev, A. V. (2019). The Essence of Cryptocurrencies: Descriptive and Comparative Analysis /Finance: Theory and Practice // Finance: Theory and Practice, vol. 23, issue 6, 36-49. Recovered from https://doi.org/10.26794/2587-5671-2019-23-6-36-49
Sorokina, Y. S. (2018) Bitcoin: an innovative currency or an instrument of financial crime? Political Internet electronic scientific journal of the Kuban State Agrarian University, No. 131, p. 1301-1310. DOI http://ej.kubagro.ru/2017/07/pdf/108.pdf
Stukalo, N. V., Krasnikova, N. O., Balash, O. O. (2018). Cryptocurrency functioning in the global economy // Visn. Dnipro. Univer. Ser. Worlds Economy and International Economic Vidnosy’ny’.2018, 10 (26), S. 109–119 doi 10.15421/181811. Recovered from http://www.dnu.dp.ua/docs/visnik/fmecon/program_5c0e995b6ea3f.pdf
Swiss Confederation (2014). Federal Council report on virtual currencies in response to the postulates Schwaab (13.3687) and Weibel (13.4070). Recovered from http://www.news.admin.ch/ NSBSubscriber/message/attachments/35361.pdf
Tax treatment of crypto-currencies in Australia-specifically bitcoin (2014). Australian Taxation Office. Recovered from https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia---specifically-bitcoin/
Zenin, S., Kuteynikov, D., Izhaev, O., & Yapryntsev, I. (2019). Applying Technologies of Distributed Registries and Blockchains in Popular Voting and Lawmaking: Key Methods and Main Problems. Amazonia Investiga, 8(20), 330-339. Retrieved from https://www.amazoniainvestiga.info/index.php/amazonia/article/view/147
Published
2020-08-07
How to Cite
Dumchikov, M., Kononenko, N., Batsenko, L., Halenin, R., & Hlushchenko, N. (2020). Issues of regulating cryptocurrency and control over its turnover: international experience. Amazonia Investiga, 9(31), 10-20. https://doi.org/10.34069/AI/2020.31.07.1
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