Legal Independency of Virtual Banks, Their Preservation and Security
Document Type : Original Article
Authors
1
PhD Student in Private Law, Faculty of Humanities, North Tehran Branch, Islamic Azad University, Tehran, Iran.
2
Associate Professor, Department of International Trade Law and Intellectual Property Law and Cyberspace, Faculty of Law, Shahid Beheshti University, Tehran, Iran.
3
Professor, Department of International Trade Law and Intellectual Property Law and Cyberspace, Faculty of Law, Shahid Beheshti University, Tehran, Iran.
Abstract
Abstract:
In a rapid growing and developing world of technology, it is one of the very serious plans of banking industry to create opportunities for implementing virtual banking. Virtual Bank is a corporate entity which obtains full credentials of banking services from the banking regulatory system, and has an independent legal entity. The emergence of unexpected and unpredictable issues such as the compulsory keeping social distance among people as the result of such pandemics as Covid-19 and applying cost effective methods in space and time, have all pushed forward, more than ever, an urgent global movement toward establishing virtual banking, and on its turn, the industry has made it inevitable to establish virtual banking system on a nation-wide scale. Therefore, for the purpose of utilizing the privileges of virtual banking, we need to recognize and manage the legal challenges which might be arisen in relation to the industry. This project firstly intends to make a comparative study of virtual banks so that recognition is made of the legal independent entity, its specifications, the requirements of creation and the application of virtual banking industry; then, in view of the fact that all data of these kinds of banks are interchanged in a virtual environment where they are more exposed to cyber-attacks hazards, we look for the kind of legal instruments which are reflected to be created for safekeeping and safeguarding such data.
In a rapid growing and developing world of technology, it is one of the very serious plans of banking industry to create opportunities for implementing virtual banking. Virtual Bank is a corporate entity which obtains full credentials of banking services from the banking regulatory system, and has an independent legal entity. The emergence of unexpected and unpredictable issues such as the compulsory keeping social distance among people as the result of such pandemics as Covid-19 and applying cost effective methods in space and time, have all pushed forward, more than ever, an urgent global movement toward establishing virtual banking, and on its turn, the industry has made it inevitable to establish virtual banking system on a nation-wide scale. Therefore, for the purpose of utilizing the privileges of virtual banking, we need to recognize and manage the legal challenges which might be arisen in relation to the industry. This project firstly intends to make a comparative study of virtual banks so that recognition is made of the legal independent entity, its specifications, the requirements of creation and the application of virtual banking industry; then, in view of the fact that all data of these kinds of banks are interchanged in a virtual environment where they are more exposed to cyber-attacks hazards, we look for the kind of legal instruments which are reflected to be created for safekeeping and safeguarding such data.
Keywords
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