Cryptocurrency:Regulatory And Legal Issues

The development of digital technology is promoting the deep transformation of the global financial industry.With the popularity of electronic payment,the use of cash is decreasing,and consumer behavior in payment and other financial services has changed.Financial service providers,including banks,are facing challenges from new market entrants.The emergence of digital currencies,especially cryptocurrencies,conforms to the trend of economic globalization and digitalization,and is an inevitable product of the development of human society and economy into the digital age.The development of cryptocurrency and financial technology has raised the demand for laws and regulations from the perspective of function realization and technical governance.Whether ordinary citizens,financial institutions,regulatory agencies or central banks,are paying attention to their development and future trends.The supervision of cryptocurrencies involves national security,the protection of individual rights,and the value needs of technological development.As the currency management authorities of their respective countries,central banks around the world are paying attention to this phenomenon,and have begun to study digital currency on monetary policy,foreign exchange management,payment settlement,anti-money laundering,etc.Some countries have begun to explore the feasibility of the central bank issuing fiat digital currency and other issues.Therefore,the regulatory laws of cryptocurrencies are an important issue to be studied urgently.In addition to the introduction and conclusion,this article consists of six chapters.The first chapter is an overview,which mainly discusses the technical foundation,risks,regulatory challenges and impact of cryptocurrencies.The first section of this chapter briefly introduces the technical foundation of cryptocurrency,the definition and classification of cryptocurrency,analyzes the related concepts of digital currency,virtual currency,and cryptocurrency,and then analyzes the cryptocurrency ecosystem,main participants and their legal relations.The second section analyzes the risks,regulatory challenges,and impacts of decentralized cryptocurrencies,focusing on regulatory challenges,including challenges to the currency system,legal attributes,and regulatory challenges.The second chapter is the basic theoretical chapter of this article,which discusses the legal nature of cryptocurrencies.For the emerging thing of cryptocurrency,a major regulatory problem is how to classify and characterize it,and what kind of regulatory system to incorporate.Cryptocurrencies exhibit multiple legal nature,resulting in the doctrines of property theory,currency theory and securities theory,but all have certain theoretical difficulties.The first section discusses the theory of non-monetary property and its theoretical dilemma;the second section discusses the theory of currency and its theoretical dilemma,and the third section proposes that the legal attributes of cryptocurrencies should be repositioned based on the function rather than the form of the cryptocurrency,and the corresponding Build path.The third chapter studies the supervision of blockchain technology,one of the underlying technologies of cryptocurrency,because only understanding blockchain technology can deeply understand cryptocurrency.Blockchain supervision is the foundation of cryptocurrency supervision.The first section mainly introduces the principles and applications of blockchain technology.The second section first analyzes the system and value considerations of blockchain supervision,then analyzes blockchain risks and supervision challenges,and finally puts forward the basic ideas and strategies of blockchain supervision.The fourth chapter mainly studies the issue of the issuance of cryptocurrency-the supervision of the initial token issuance(ICO).The first section mainly introduces the operation mechanism and regulatory challenges of ICO,including background analysis of ICO,risk and policy considerations,and the regulatory challenges it faces.The second section focuses on the ICO regulatory framework and system design of representative countries and regions in the world,and analyzes the legal basis of ICO regulation and the choice of regulatory model.The third section puts forward some suggestions on the development and supervision of China’s ICO.The fifth chapter focuses on the use of cryptocurrencies—anti-money laundering supervision.Due to the anonymity and transnational nature of cryptocurrencies,hindering the traceability of their flow trajectory,and easy to confuse the transaction chain,cryptocurrency is usually used as a payment method in cybercrime activities.The use of cryptocurrencies for money laundering has brought many risks,and major countries have adopted certain regulatory measures.The Financial Action Task Force(FATF)of the International Anti-Money Laundering Organization has also issued special guidelines for the supervision of cryptocurrency anti-money laundering,coordinating global anti-money laundering efforts.The first section analyzes the regulatory dilemma of cryptocurrency anti-money laundering,including the process,means,risks and regulatory challenges of cryptocurrency laundering.The second section introduces the practice of cryptocurrency anti-money laundering in major countries and regions of the world,including the practice in the United States,the European Union,and the Asia-Pacific region,and evaluates it.The third section focuses on the international supervision system of cryptocurrency anti-money laundering,mainly the FATF system.Section 4 puts forward some suggestions for improving China’s cryptocurrency anti-money laundering.The sixth chapter is the final chapter of this article,which studies the legal and regulatory issues of the advanced stage of cryptocurrency development.ie,Central Bank Digital Currency(CBDC).The central bank digital currency has become a new field of strategic frontier significance for countries to compete for research and development.The first section is the economic analysis of CBDC.It first introduces the definition and type of CDBC,and then analyzes the reasons why the central bank issued CBDC and its impact on monetary policy.The second section discusses the issue of CBDC issuance plan design and technology selection.The third section is the legislative system arrangement for the issuance of CBDC,including the basis of issuance,the finality of the transfer,how to apply anti-money laundering rules,how to protect personal data,etc.,and puts forward some suggestions for the issuance of CBDC in China.