Governmental Approaches to Crypto Currency Regulation: Prohibition, Precaution, and Facilitation
Document Type : Original Article
Authors
1
Master of International Law - University of Tehran, Iran and Master of Space law and Policy- Beihang University, China
2
PhD student in Public International Law, Tehran University of Science and Research, Iran.
Abstract
The rapid proliferation and development of digital currencies in recent years have led to unprecedented popularity for this phenomenon. Cryptocurrency systems employ and are supported by a wide range of secure cryptographic programs to facilitate financial transactions. The nature of these computational operating systems and the scope of their applications raise significant legal issues.
This study seeks to analyze cryptocurrency regulations across global jurisdictions and the status of recognition and supervision of this emerging technology worldwide. It aims to answer how governments approach the phenomenon of cryptocurrencies in national regulatory frameworks. Based on the research conducted, although existing laws and regulations in various legal systems address some of the needs in this area, the development and recognition of this phenomenon have led to the emergence of new issues in legal, regulatory, and public policy domains.
The research methodology is descriptive-analytical, utilizing library resources to examine and analyze governmental approaches to cryptocurrency laws, providing comprehensive yet concise information. The findings indicate that while current laws and regulations address some of the needs in this area, they face significant limitations due to cryptocurrencies' decentralized and transnational nature. The ultimate conclusion is that without the development of specific and up-to-date laws and regulations that consider the technical aspects of this field, existing legal systems will inevitably regulate digital currencies like cryptocurrencies through the interpretation and application of current monetary and foreign exchange laws, which can lead to ambiguity, uncertainty, and obstacles to innovation. Therefore, this study emphasizes developing new and appropriate legal frameworks for cryptocurrencies.
This study seeks to analyze cryptocurrency regulations across global jurisdictions and the status of recognition and supervision of this emerging technology worldwide. It aims to answer how governments approach the phenomenon of cryptocurrencies in national regulatory frameworks. Based on the research conducted, although existing laws and regulations in various legal systems address some of the needs in this area, the development and recognition of this phenomenon have led to the emergence of new issues in legal, regulatory, and public policy domains.
The research methodology is descriptive-analytical, utilizing library resources to examine and analyze governmental approaches to cryptocurrency laws, providing comprehensive yet concise information. The findings indicate that while current laws and regulations address some of the needs in this area, they face significant limitations due to cryptocurrencies' decentralized and transnational nature. The ultimate conclusion is that without the development of specific and up-to-date laws and regulations that consider the technical aspects of this field, existing legal systems will inevitably regulate digital currencies like cryptocurrencies through the interpretation and application of current monetary and foreign exchange laws, which can lead to ambiguity, uncertainty, and obstacles to innovation. Therefore, this study emphasizes developing new and appropriate legal frameworks for cryptocurrencies.
Keywords
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