Research On The Protection Of Financial Consumer Of Cryptocurrency

In recent years,cryptocurrency has been widely discussed in the financial field.Cryptocurrency is a kind of virtual currency that guarantees its credit based on node network and digital encryption algorithm.It has the advantages of value storage,lower transaction cost,improved transaction efficiency,and transparent information.But at the same time,the cryptocurrency market has also exposed many problems.The protection mode of cryptocurrencies has become a controversial topic.From the perspective of financial consumer protection,this paper analyzes the various risks that cryptocurrency may pose to financial consumers,such as property rights,right to know,and privacy,combined with real-life cases in various countries.It points out the predicament that the current cryptocurrency financial consumers have.However,different countries have different attitudes toward cryptocurrencies at present,and some countries regard it as a kind of financial technology innovation and adopt a multi-faceted positive supervision method,such as the United States,Japan,and South Korea.Some countries have ordered their bans to circumvent the financial risks they may bring.One of its purposes,whether prohibited or actively regulated,is to protect the rights of financial consumers from harm.Therefore,what kind of supervision model can best protect the rights of financial consumers from harm becomes a topic worth discussing.This paper starts from two modes of supervision,analyzes its protection mechanism for financial consumers,and then discusses the improvement of digital cryptocurrency financial consumer protection path.At present,China and the United States have two different protection modes.Since the United States in 2013,various departments have been actively monitoring digital cryptocurrency,and have formed the Bitlicense bill,the uniform regulation of virtual currency business act,etc.from market access,information disclosure,and network.Digital cryptocurrency providers are regulated in terms of security,ongoing operations and disaster recovery plans to protect financial consumers.China has gone through the process of trying to actively monitor to total ban.After comparative research,it is found that the two regulatory models have their own advantages in one aspect,but they also expose the problem of financial consumer protection.China adopts a simple and direct prohibition method and independently develops the central bank's digital currency.The central bank's digital currency can make up for some of the inherent risks of private digital cryptocurrency,which is unattainable by the US regulatory system.But the direct prohibition method has pushed the demanding financial consumers to the wrong place in a certain extent,and has made financial consumers lose the possibility of participating in financial technology.In addition,due to the effectiveness of the announcement of the central bank,there is a dispute in the judicial practice,which makes some financial consumers unable to be protected.In the US regulatory model,although the regulatory authorities have made a lot of efforts in terms of registration,operation,network security,and disaster recovery plans of the corresponding service providers,they have safeguarded the rights and interests of financial consumers to a certain extent.But in this mode,there are still certain problems underneath.First,the US regulatory system cannot solve the consumer protection problem caused by the inferiority of the digital cryptocurrency itself,such as the difficulty of cryptocurrency being enforced and the security falling.Second,it can't solve the problem of cryptocurrency manipulation.In addition to the system of cryptocurrency is excluded by securities regulation,the US securities system only incorporates token financing into securities supervision.This has alsomade it difficult for regulators to regulate the systems governing securities and futures markets.Under the exploration of the two modes of China and the United States,each has its own advantages and disadvantages.Therefore,this paper attempts to explore a system that can construct a duality.In the case of implementing the central bank digital currency,the private cryptocurrency market should be properly opened,so it can supplement the functions of the central bank's digital currency,and give financial technology innovation space,and financial consumers can participate in the benefits of financial technology innovation.And you can try the “sandbox supervision” model to conduct experiments in the pilot area to control its risks,and supervise it with technology-led financial supervision concepts to improve regulatory efficiency and level,and balance financial consumers,regulators and services.The first chapter is mainly about the overall introduction of digital cryptocurrency.This section first clarifies the concept of cryptocurrency and analyzes the difference between digital cryptocurrency and other currencies.Then analyze its operating mechanism and value significance,and prove that the existence of digital cryptocurrency has certain rationality.The second chapter mainly combines real-life case analysis.Financial consumers may have legal risks in the digital cryptocurrency market,such as market manipulation risk,false information disclosure risk,platform illegal encroachment risk,personal information leakage risk,etc.And pointing out the plight of financial consumers have such as the property security right,the right to know,the right to privacy,and the right to relief.The third chapter is mainly about the study of financial consumer protection under the two supervision modes of China and the United States.This section first introduces the protection system under the supervision mode of China and the United States,and then compares and finds their respective regulatory deficiencies.The fourth chapter mainly discusses the improvement of the protection path of financial consumers.First of all,by summarizing the views of scholars and the advantages brought by the central bank's digital currency,it is imperative to introducethe central bank's digital currency.Secondly,it is discussed that under the implementation of the central bank's digital currency,the private digital cryptocurrency market should be properly liberalized to provide financial consumers with the possibility to participate in financial innovation.The innovation of this paper: First,this paper analyzes the risk of digital cryptocurrency from the perspective of financial consumers and the latest examples.Second,this article combines the latest US legislation to summarize the US regulation of the digital cryptocurrency market.Thirdly,this paper proposes a dual-mode model of the coexistence of central bank digital currency and private digital cryptocurrency,which can provide some benefits for the future of the central bank's digital currency.The shortcomings of this paper are mainly concentrated on the research part of foreign countries.First,some cases involved in this article,from the official website of the US Securities Regulatory Commission and the Commodity Futures Trading Commission,which are not the first-hand detailed information.Second,this paper analyzes the protection of financial consumers from the regulatory system and does not combine traditional consumer protection systems.