Electronic money, cryptocurrencies and payment systems: some trends in the legal regulation in the context of digitalization of public finance

Authors

DOI:

https://doi.org/10.15587/2523-4153.2023.286150

Keywords:

cryptocurrencies, payment systems, digital money of the National Bank of Ukraine, FinTech

Abstract

The article is devoted to certain legal aspects of the impact of the FinTech-industry on public finance. The emergence of new various financial services and instruments requires their appropriate legal assessment and effective legal regulation. Despite numerous publications and scientific studies of various aspects of the manifestation and application of FinTech, The Theory of legal regulation of digital finance is at the initial stage of its formation and is fragmented.

The paper reviews special literature, devoted to the problems of legal regulation of virtual assets and related payment services. It emphasizes the need to observe a balanced conservative nature of legal regulation of financial relations in the context of the introduction of digital financial technologies, taking into account the tasks of protecting both public interests and ones of individuals. Based on the analysis of the current legislation, trends towards breaking the state issue monopoly due to the introduction of electronic money in the economy are revealed.

The conclusions and theoretical generalizations are presented, the main of which are: 1) cryptocurrencies as alternative units of account pose a threat to the dominance of public currencies, as they make competition between private financial agents and states and their associations possible; 2) the issue of legal assessment of cryptocurrencies has not yet been finally resolved, including their legal nature remains debatable; 3) in its essence, electronic money is a kind of "electronic bill", but does not meet the formal characteristics of such a security; 4) there is a tendency to weaken the imperativeness of legal regulation of the sphere of monetary circulation fundamental for public finances by ensuring local rule-making within individual payment systems

Author Biography

Ievgenii Alisov, Yaroslav Mudryi National Law University

Doctor of Law, professor

Department of Financial Law

References

  1. Benjamin, G. (2020). Electronic Payments: Guide on Legal and Regulatory Reforms and Best Practices for Developing Countries. Osgoode Hall Law School of York University. Available at: https://digitalcommons.osgoode.yorku.ca/cgi/viewcontent.cgi?article=3796&context=scholarly_works Last accessed: 24.06.2023
  2. Shehnaz, A. (2021). Modernising the Law for Payment Services in India. Faculty of Law Blogs / University of Oxford. Available at: https://blogs.law.ox.ac.uk/business-law-blog/blog/2021/11/modernising-law-payment-services-india Last accessed: 24.06.2023
  3. Nazarenko, V. O. (2021). Regulation of payment systems in the civil law context. Juridical Scientific and Electronic Journal, 3, 114–116. doi: https://doi.org/10.32782/2524-0374/2021-3/27
  4. Pozhydaieva, M. A. (2020). Platizhni systemy: teoretychni zasady ta finansovo-pravove rehuliuvannia v Ukraini. Kyiv: Yurinkom Inter, 348.
  5. Pro platizhni posluhy (2021). Zakon Ukrainy No. 1591-IX. 30.06.2021. Available at: https://zakon.rada.gov.ua/laws/show/1591-20#Text Last accessed: 24.06.2023
  6. Todd, E., Susannah, H. (2022). Compendium: Cryptocurrency regulations by country. Thomson Reuters. Available at: https://www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2022/04/Cryptos-Report-Compendium-2022.pdf Last accessed: 24.06.2023
  7. Desmond, D. B., Lacey, D., Salmon, P. (2019). Evaluating cryptocurrency laundering as a complex socio-technical system. Journal of Money Laundering Control, 22 (3), 480–497. doi: https://doi.org/10.1108/jmlc-10-2018-0063
  8. Rysin, V., Rysin, M., Fedyuk, I. (2018). Legal status of cryptocurrency as a financial instrument. Efektyvna Ekonomika, 11. doi: https://doi.org/10.32702/2307-2105-2018.11.7
  9. Shchodo vidnesennia operatsii z «virtualnoiu valiutoiu/kryptovaliutoiu «Bitcoin» do operatsii z torhivli inozemnoiu valiutoiu» (2014). Lyst Natsionalnoho Banku Ukrainy No. 29-208/72889. 08.12.2014. Available at: https://zakon.rada.gov.ua/laws/show/v2889500-14#Text Last accessed: 24.06.2023
  10. Pro Natsionalnyi bank Ukrainy (1999). Zakon Ukrainy No. 679-XIV. 20.05.1999. Available at: https://zakon.rada.gov.ua/laws/show/679-14#n434 Last accessed: 24.06.2023
  11. Spilna zaiava finansovykh rehuliatoriv shchodo statusu kryptovaliut v Ukraini (2017). Available at: https://bank.gov.ua/ua/news/all/spilna-zayava-finansovih-regulyatoriv-schodo-statusu-kriptovalyut-v-ukrayini Last accessed: 24.06.2023
  12. Pro virtualni aktyvy (2022). Zakon Ukrainy No. 2074-IX. 17.02.2022. Available at: https://zakon.rada.gov.ua/laws/show/2074-20#Text Last accessed: 24.06.2023
  13. Pro platizhni posluhy (2021). Zakon Ukrainy No. 1591-IX. 30.06.2021. Available at: https://zakon.rada.gov.ua/laws/show/1591-20#Text Last accessed: 24.06.2023
  14. Pro vnesennia zmin do Podatkovoho kodeksu Ukrainy ta inshykh zakonodavchykh aktiv Ukrainy shchodo platizhnykh posluh (2023). Zakon Ukrainy No. 2888-IX. 12.01.2023. Available at: https://zakon.rada.gov.ua/laws/show/2888-20#Text Last accessed: 24.06.2023
  15. Podatkovyi kodeks Ukrainy (2010). Kodeks Ukrainy No. 2755-VI. 02.12.2010. Available at: https://zakon.rada.gov.ua/laws/show/2755-17#Text Last accessed: 24.06.2023

Downloads

Published

2023-09-13

How to Cite

Alisov, I. (2023). Electronic money, cryptocurrencies and payment systems: some trends in the legal regulation in the context of digitalization of public finance. ScienceRise: Juridical Science, (3(25), 35–40. https://doi.org/10.15587/2523-4153.2023.286150

Issue

No. 3(25) (2023)

Section

Juridical Science

License

Copyright (c) 2023 Ievgenii Alisov

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Our journal abides by the Creative Commons CC BY copyright rights and permissions for open access journals.

Authors, who are published in this journal, agree to the following conditions:

1. The authors reserve the right to authorship of the work and pass the first publication right of this work to the journal under the terms of a Creative Commons CC BY, which allows others to freely distribute the published research with the obligatory reference to the authors of the original work and the first publication of the work in this journal.

 2. The authors have the right to conclude separate supplement agreements that relate to non-exclusive work distribution in the form in which it has been published by the journal (for example, to upload the work to the online storage of the journal or publish it as part of a monograph), provided that the reference to the first publication of the work in this journal is included.