Study On Legal System Of Supervision On Electronic Currency

As an inevitable result of the development of currency's general rules, electronic currency is the latest monetary form under an information civilization. Electronic currency, which reflects the monetary nature of the invariance property and the variability of monetary forms, is the product of the combination of technology and monetary nature. It is an important innovation of payment system. Electronic currency has fundamentally changed our life, greatly improved the efficiency of the currency circulation, saved the cost of currency circulation and had an inestimable impact on the development of the law. Electronic currency makes financial services and e-commerce benefits, at the same time, changes the legal supervision of traditional financial supervision of the target, tools and countermeasure. So, this article attempts to study the legal system of supervision on electronic currency.Firstly, this article generally studies the electronic currency. It includes four parts of the electronic currency: the definition, the features, the type and the legal property. As the definition of the electronic currency, the author first introduces the different theory of the basic meaning of it, including the monetary value, stored-value products, data information and electronic payment. Then the author draws the definition of the electronic currency by analyzing the lack of the theory. As the features of the electronic currency, compared with traditional credit currency,I believe that electronic currency is a kind of electronic, network, illegal compensation and the various main body currencies. As the type of electronic currency, based on various criteria, the author divides the electronic currency in cash-based electronic currency, account-based electronic currency, finance-based electronic currency, business-based electronic currency, card-based electronic currency and internet-based electronic currency. As the legal property of electronic currency, the author firstly analyzes the legal property of metal currency and credit currency, and then analyzes the legal property of electronic currency in two areas of the electronic currency and legal currency, the electronic currency and deposit currency.Secondly, this article studies the basis theory of the legal system of supervision on electronic currency which includes monetary theory, network theory and the theory of state intervention. The author points out that the emergence of electronic currency is the inevitable result of the role of Marx's monetary development. In metal-based currency system, Marx believed that the currency have four basic functions of value scale, circulation means, storage means and payment means. Similarly, electronic currency also has four basic functions, but its form is different. Since the traditional currency is regulated by law, then the electronic currency is no exception. The author points out that electronic currency is a network currency, which storages and transmits through network in the form of electronic data. But, it will have a very significant impact if the electronic currency system has been eroded which including equipment failures, loss of circulation records and currency fraud, what's more, criminals will destruct the development of the electronic currency by using it to money laundering. Therefore, the strengthening of the supervision of electronic currency must be. The author points out that the state intervenes the flow of electronic currency, mainly using financial supervision. Financial supervision is innovated with the development of the social politic, economic and cultural, which mainly happened during the 20th century 30's and before, 20th century 70's and 20th century 90's. Financial supervision under the flow of electronic currency is very different to the traditional financial supervision, it has brought new challenges. Therefore, we must improve and perfect the existing financial legal supervision systems to cope with the development of electronic currency.Thirdly, this article introduces the legal system of supervision on electronic currency in western countries, including the European Union, the United States and other countries in the west. In the issue of supervision of electronic currency, the EU maintained that establish complex supervision system in the initial stage of development of electronic currency. September 18, 2000, the European Parliament and EU Council promulgated《start-up,operation and prudential supervision of the electronic currency institutions of the directive 2000/46/EC》to supervise the activities of electronic currency in EU. It related to the scope of application and activity restrictions,the conditions of application of the Banking Directive,the redemption of electronic currency,the initial capital and continuing capital requirements,investment restrictions,specific requirements of the verification of observance, sound and prudent operating. In the issue of supervision of electronic currency, the United States and the EU's point of view was different, the United States advocated that establish specific supervision measures when the need for supervision. June 1998, Federal Deposit Insurance Corporation released《e-banking - the safety and soundness examination procedures》, the report on the conduct of electronic currency banks provided detailed standards and procedures. In fact, it was the U.S. mode of the electronic currency risk management and regulatory approach. Other countries of Western established the law that the information disclosure and redemption of electronic currency. The author believes that the western countries'development of electronic currency is earlier and the legal system of supervision on electronic currency is more complete than other countries', which are worthy of reference for our country.Finally, this article comes to the conclusion that China should improve the legislation of supervision on electronic currency and summarizes the primary issue of legislation of supervision on electronic currency in our country through introducing Chinese existing law on electronic currency institutions and conditions, risk management and operational supervision. To solve these problems, I propose to improve legislation of supervision on electronic currency in our country. It mainly includes strengthen the independence of financial supervision,the functional supervision,the supervision of electronic currency issue,the supervision of internal control and the supervision of electronic currency laundering.