Skip to main content

2018 | Buch

Regulation of Cryptocurrencies and Blockchain Technologies

National and International Perspectives

insite
SUCHEN

Über dieses Buch

The book highlights the rise of Bitcoin, which is based on blockchain technology, and some of the many types of coins and tokens that emerged thereafter. Although Bitcoin and other cryptocurrencies have made national and international news with their dramatic rise and decline in value, nevertheless the underlying technology is being adopted by both industry and governments, which have noted the benefits of speed, cost efficiency, and protection from hacking. Based on numerous downloaded articles, laws, cases, and other materials, the book discusses the digital transformation, the types of cryptocurrencies, key actors, and the benefits and risks. It also addresses legal issues of digital technology and the evolving U.S. federal regulation. The varying treatment by individual U.S. states is reviewed together with attempts by organizations to arrive at a uniform regulatory regime. Both civil and criminal prosecutions are highlighted with an examination of the major cases that have arisen. Whether and how to tax cryptocurrency transactions both in the U.S. and internationally are analyzed, and ends with a speculative narrative of future developments.

Inhaltsverzeichnis

Frontmatter
The Digital Transformation
Abstract
We commence the text with an introduction to the latest technological innovations in financial transactions, namely, the development of virtual currencies as exemplified by Bitcoin. The question arises concerning the nature of money with a brief historical overview followed by the reasons for the advent and rise of virtual currencies We examine the types of virtual currencies, the key actors that constitute the innovations, and the benefits and risks thereof in substantial detail. We close with the views expressed by two Nobel laureates of economics.
Rosario Girasa
Technology Underlying Cryptocurrencies and Types of Cryptocurrencies
Abstract
This chapter explores the advent of blockchain technology which is the basis for almost all of the many types and formats of virtual currencies. We review the types, uses, and the many ways in which blockchain is transforming the world of business as well as society. Among them are management tools, financial services, tourism, legal and accounting services, and the innumerable other uses due to blockchain’s impenetrability to hacking, its protection of privacy, and many other advantages afforded.
Rosario Girasa
Legal Issues of Digital Technology
Abstract
The chapter is mainly about the steps governments are taking to assure that the latest technological innovations are not misused by drug dealers and other criminals, persons seeking to avoid the payment of taxes on profits made, as well as by terrorists and governments facing international sanctions. The problems include a lack of understanding by governments about the nature and function of the new technology, how to overcome its near total lack of transparency, the actions of individuals who hack individual websites to gain knowledge of users’ private keys to steal wallets containing virtual currencies, and other endeavors.
Rosario Girasa
Federal Regulation of Virtual Currencies
Abstract
We examine how the U.S. federal government, which initially was slow in examining and prosecuting violations of law brought about by the misuse of virtual currencies, has now taken aggressive action against parties who either deliberately or carelessly act in violation of the rights of users and customers. We examine the role of the U.S. Securities and Exchange Commission (SEC) and its initial prosecutions; the Commodity Futures Trading Commission, which together with the SEC, are the leading prosecutorial agencies with respect to the new currencies; the Financial Crimes Enforcement Network and its guidance to the financial industry; and additional agencies and their attempts to protect investors and consumers.
Rosario Girasa
States’ Regulation of Virtual Currencies
Abstract
We proceed with a review of all of the states and their endeavors to deal with the latest innovative technologies. We note that states have many varying views concerning whether to regulate, the websites to warn inhabitants of the risks of virtual currency investments, whether to tax transactions, or even welcome their advent viewing the innovations as a further major step towards an increase in safety, lower costs, and other advantages. Some states license virtual currency businesses, others are content to simply warn of their risks, while other states appear to almost ignore the developments.
Rosario Girasa
Criminal Prosecutions and Civil Litigation Concerning Virtual Currencies
Abstract
In this chapter, we review the major laws affecting virtual currencies and explore in substantial detail the many cases that have arisen that required governmental intervention. Among the most egregious cases are “The Silk Road” and “Darknet” cases whereby blockchain and virtual currencies formed the basis of numerous violations of the laws of both the United States and numerous other countries. Governments have the choice of proceeding criminally against violators or civilly which requires a much lower standard of proof and consequently is much easier to prosecute successfully.
Rosario Girasa
Crowdfunding and the Taxation of Virtual Currencies
Abstract
Crowdfunding, which is the raising of funds from small private investors for many causes, has been in competition with venture capitalists in the promotion of virtual currencies and was the primary financial donor to Ethereum. The U.S. Internal Revenue Service (IRS) has taken note that the value of virtual currencies has risen to an extraordinary degree and that a number of people have received very substantial monetary gains from their exchange. Accordingly, the IRS has ruled that such gains are taxable and subject to major penalties for the failure to pay the appropriate taxes on them. The problem is how to determine who is engaged in the transactions, whether virtual currencies constitute property or currencies, how to subpoena and gain access to information about transactions, and other issues.
Rosario Girasa
International Regulation
Abstract
We now examine how most countries have dealt with virtual currencies and, as anticipated, some countries welcome the newest technology, some prohibit it totally as being dangerous to the local currencies, others are satisfied with issuing warnings, while yet others seek to tax gains made from the exchange. We also examine how international organizations and entities such as the European Union and its banking organizations are interposing regulatory regimes to prevent money laundering and other misuses of the new technology.
Rosario Girasa
Conclusion: The Future of Cryptocurrencies
Abstract
We end the text with the author’s view concerning the general trend of future developments and note that new methodologies are being developed to permit governmental entities to bypass the secret private keys used by customers of the virtual currencies.
Rosario Girasa
Backmatter
Metadaten
Titel
Regulation of Cryptocurrencies and Blockchain Technologies
verfasst von
Dr. Rosario Girasa
Copyright-Jahr
2018
Electronic ISBN
978-3-319-78509-7
Print ISBN
978-3-319-78508-0
DOI
https://doi.org/10.1007/978-3-319-78509-7