Several years after the inception of the most dominant cryptocurrency, bitcoin, the European Central Bank in 2015 indicated the need for establishing legal clarity by relevant authorities through explaining how the current legal framework applies to cryptocurrencies. Three years later, no meaningful step has been taken by any of the European Union (EU) institutions including the parliament. By examining the EU’s legal framework governing payments services, including the Single Euro Payment Area (SEPA) Regulation, the Electronic Money Directive, the Payment Services Directive and the proposed AML/CTF Directive, this article concludes that (a) because the existing payment services laws apply to payments effected in currencies (legal tenders) and cryptocurrencies are not defined as currencies under the EU law or the laws of member states, they do not cover cryptocurrencies. It also argues that it is impossible to design sui generis payments services law for cryptocurrencies without curbing their essential features, especially decentralization. Lastly, the article proposes centralization and the creation of state cryptocurrency as possible solutions moving forward and examines their strengths and challenges.
British Financial Supervision and Control Authority has identified new technologies as a component of fintech. These components include regtech, insurtech, blockchain. These new areas of the market development are incomprehensible to a wide range of people. However, this area attracts venture capital which is actively growing worldwide. The prospects of development of these areas are interesting for many reasons: reduction of financial costs for market participants, reduction of information processing time, security of financial transactions, information security and completeness. The article describes: objective reasons of the occurrence of such a kind of the product, risks of using these products and advantages of their introduction in all spheres of life, as well as the scope of regtech implementation.Keywords: Fintech, regtech, blockchain, insurtech
The article provides an analytical overview of cryptocurrencies, the dynamics of bitcoin from the origin to the present time. The specific risks of the virtual currencies use were identified.Keywords: bitcoin, cryptocurrency, risks, electronic money; financial technology.
This article covers the main concepts, common features and differences between electronic grizzly and cybercriminals. The author, based on his own research, gives examples and characteristics of these concepts. The scientific approach describes the important aspects of the functioning of these modern means of payment, which are becoming increasingly popular in the world. However, each of them has both advantages and disadvantages, and in a sense, their use is associated with a number of risks that should be taken into account when deciding on their use. In order to take into account the risks, it is first of all to understand the essence of the payment instrument and the mechanism of its operation. It is for this purpose that this article is prepared: to help readers, irrespective of the level of financial training, to understand the important aspects of the circulation of cryptography and electronic money.
Digitalization and Economic Development in Agriculture
In the Internet economy, with the help of cryptography, a branch of mathematics dealing with the security of information, as well as authentication and restriction of access to a computer system, a new digital coin as an alternative to national currencies appeared. In accomplishing this, using both mathematical methods (taking advantage of, for example, the difficulty of factorizing very large numbers), and quantum encryption methods. Throughout the world, information technology companies are focusing on information protection, inventing day-to-day methods with greater durability. In the horizon of Information Security, Quantum Cryptography has emerged, generating new possibilities in that field, hoping that data will be better protected and that the digital currency will resist over time and eventually evolve in the future, although Kurzweil, Bitcoin's pioneering technology is unlikely to be used in this respect. The idea of virtual alternatives to national currencies is not new, with advantages and disadvantages. The advantages of this coin are high payment freedom, transparency of information, high security, reduced risks for traders. Among the disadvantages we highlight the risk and volatility, the lack of notification and understanding, with incomplete functions, but which are developing, so Bitcoin is not perfect.
The purpose of this paper is to integrate quality management system, corporate social responsibility guidelines, United Nations Sustainable Development Goals, blockchain related documents and qualitative interview results from Hong Kong and Slovakia to design a set of social inclusive quality indicators within the context of the higher education sector. Three levels for social inclusive quality indicators in relation to blockchain content distribution technology in HE have been identified: governance with transparency, trust building with the sustainable community in needs fulfilment; industry innovations with risk and security audit mechanism. The contribution of this paper is to raise awareness of educators, industry practitioners and policy makers about the importance of social inclusion in blockchain technology. This study fills the gap through integrating system thinking, humanistic thinking and proactive thinking in the higher education context.
Recent declarations and investigations by the Securities and ExchangeCommission suggest that blockchain-based assets are potentially subject to regulation as securities under the Securities Act.This Article presents a systematic analysis of the risks and embedded costs of investments in blockchainbased assets and assesses their potential regulation as securities.This Article offers a comprehensive account of the pertinent properties of blockchain-based assets, the technology of the blockchain, the markets available for their trade, and their varied underlying sources of value.It identifies unique costs and risk factors inherent to the blockchain technology, and examines whether securities laws can potentially add value and protect investors from these unique risks.Identified costs and risks factors include controlling costs prevalent even in decentralized ledgers, monitoring costs that vary according to the costs of automatic verification, technology risks rooted in the vulnerability of the blockchain to bugs in its software, and systemic risks embedded in limited transparency and contractual rigidity of the blockchain-based investment contract.This Article examines these unique costs and risk factors and assesses their normative implications for securities regulation of blockchain-based assets.With current efforts by regulatory authorities to designate blockchain-based assets as securities, a coherent approach is presented based on the type of the offering, investors' profile, and the technical and legal contours of the blockchain-based
The article is devoted to the definition of problems using of blockchain technologies, and ways to overcome them to create distributed, secure applications. The paper considers the theoretical fundamentals of blockchain technologies and blockchain applications, new models of blockchain business, blockchain applications development platform, blockchain applications security, blockchain applications development problems, prospects for further research. The analysis of recent research and publications in the field of blockchain technologies are made in the article. Based on this analysis, it was determined that the blockchain industry has not yet completed the process of generating a generally accepted multilevel technology description. The overview of existing models of business blockchain, their characteristics and areas of application are done in the article. Software tools for creating and maintaining blockchain applications are considered. The article deals with the features, advantages and problems of using blockchain technology for creating distributed, secure applications. The problem of integration of new and existing private systems with an open blockchains is considered. A possible solution to this problem is the creation of a blockchain authentication service to implement a global security level. Such a service can become a standard security infrastructure for new models of mixed private and public systems that will be useful to all participants in different areas of the economy. The directions of development of protected blockchain applications in the sphere of public administration and private business in Ukraine are determined. In addition, the priority tasks that need to be solved for successful implementation of technology in Ukraine are determined based on the analysis of the current state of development of blockchains. There are three main areas of development of blockade technology: standardization, application security and integration of block systems with existing private systems and modern technologies of artificial intelligence, large data and the Internet of things, and described prospects for further research for them.
Bitcoin: Opportunities and Threats for UkraineThe information technology world is constantly evolving.And Bitcoin has become one of the greatest innovations in economic decentralization since the late 20th century.Bitcoin is the first decentralized digital currency, which can be used through the Internet.Every country should decide what Bitcoin means for them: possibility or threat.First of all, Bitcoin has significant advantages for investors, companies, employers and employees, they are: solution of the problem of assets centralized nature; bilateral dealing system; it is not affected by inflation; geographic independence for transactions; transparency of bitcoin processes; comparative safety of cryptocurrency wallets; transaction fees and time level in comparison to SWIFT or SEPA; solution of the"double spending problem" of electronic currencies.The possible advantage for the country in case of bitcoin legalization is new business activity and new tax registration.It is important to notice that cryptocurrencies were created to be uncontrolled by any financial institutions.So the superfluous interference of the government can have detrimental effect on the development of this type of currency as a way of effective payment and accumulation facility.However, Bitcoin has some disadvantages: lack of awareness and understanding for society; risk and volatility caused by limited amount of coins and high demand; complexity and cost of cryptocurrency mining.The main threats of bitcoin distribution in Ukraine are: reduction of the state control over currency transactions and decrease of the importance of the existing currency circulation system in settlements between counterparties for goods delivered and services performed.Bitcoin is the most popular cryptocurrency in the modern world, but, despite the achieved heights, it is in the phase of development and constant improvement.Considering the facts above, we can draw the following conclusion: the importance of bitcoin should not be underestimated for Ukraine with its developed shadow economy and instability in the east of the country.This can lead to the even greater share of shadow market and reduction of legalized transactions in the field of international payments.A careful study of the currency features and analysis of its advantages and disadvantages allow to conclude that it is impossible to effectively combat the expansion and development of the cryptocurrency in the world economy.Therefore, it is advisable to take it for granted and to take the process of its development under control by adopting appropriate legislative framework and establishing the main directions for its using in the national economy.
Valentyna Kostyuchenko, A. Malinovskaya, Anastasiia Mamonova
Introduction. The worldwide expansion of digital technologies and the development of the cyber economy led to emergence of a new digital assets – the cryptographic currency that rapidly growing popularity. The phenomenon of cryptocurrency is relatively new and little investigated. \n \nPurpose. The purpose of the article is to substantiate the preconditions for the introduction of accounting and taxation of transactions with cryptic currencies in Ukraine. \n \nResults. The article considers the economic preconditions for the introduction of accounting and taxation of cryptocurrencies transactions in Ukraine. The definition of the economic content of cryptocurrency has been researched. On the basis of the definitions analysis, an author’s definition of cryptocurrency is proposed. In particular, the cryptocurrency is understood as the digital (virtual) currency, with the unit “coin”, which is emitted in the network according to certain principles of cryptography to provide transactions and control the creation of new coins. \n \nThe advantages and disadvantages of cryptocurrency as a digital currency have been analyzed. The common and distinctive characteristics of cryptocurrencies and gold were determined. The mechanism of cryptocurrencies functioning was disclosed and a glossary of terms used in cryptocurrencies transactions was provided. The cryptocurrencies development in the world and in Ukraine was investigated. Legal and tax bases for the cryptocurrencies introduction into the activities of small business entities was given. \n \nConclusions. The cryptocurrency exists outside the jurisdiction of Ukraine and in the majority world countries. The state should adopt it, acknowledge either as a digital (virtual) currency or as another digital asset, to regulate the taxation system and introduce an accounting methodology of cryptocurrencies transactions for integration into the global economic environment.
Essence of cryptocurrencies is considered in the article, their risks and prospects of development in Ukraine and world. Advantages and disadvantages of crypto currency are described. Positions of foreign central banks and other financial regulators are lighted up in relation to cryptocurrencies and markets of cryptocurrencies. It is offered, that the experience of Japan, Switzerland, the United States and England in this question should be used as a fairway. It is marked that corresponding activity and financial services must be licensed by the state as a type of professional activity on the stages of formation of cryptocurrency (mining) and support of its circulation (trading and financial consulting).
The aim of the article is a comparative legal study of laws and regulations that determine the legal principles for the regulation of cryptocurrency circulation in some foreign countries and in Ukraine and, on this basis, a definition of ways to improve domestic legislation in this sphere. The subject of the study is an interrogation of legal regulation issues of cryptocurrency circulation in Ukraine. Methodology. The study is based on a legal comparison of the regulation of cryptocurrency circulation in Ukraine and in foreign countries. Based on a comparative legal study of certain provisions of Ukrainian legislation, the possibilities and limits of implementation of positive foreign experience in this sphere are determined. The results of the study revealed that to implement foreign experience for the legal regulation of cryptocurrency circulation, it is necessary to postpone the final transition to a floating rate regime by reinforcing state interference. Moreover, it is necessary to strengthen currency control not only for currency transactions with cryptocurrency but also for the activities of entities that determine the state policy on cryptocurrency regulation, as well as operate respectively using instruments provided for by the regulations of the current legislation. Practical implications. The positive experience of the formation of the foreign exchange market in other countries demonstrates that the gradual transition to cryptocurrency circulation is the beginning of the natural market rate, the balance of payments and gradual liberation of the national economy from the pressure of administrative and corruption restrictions. Relevance/originality. The legal analysis of the regulation of cryptocurrency circulation in Ukraine and the definition of problems is the basis for developing the most promising directions for the development of domestic legislation in this sphere.
As soon as the usage of cryptocurrency in the last few years has been gaining popularity all over the world, and this global trend has affected Ukraine, the purpose of the paper is to examine the essence of cryptocurrency, to identify the issues of its legal regulation in Ukraine, as well as using the analysis of world experience in this sphere, to identify ways of the improvement for relevant domestic legislation. The authors have indicated that the cryptocurrency market (or "virtual" money) operates successfully and provides an opportunity to analyse dynamics of the cost, supply, and demand of about 90-100 different cryptocurrency. Problem's setting. The authors of the paper have emphasized that despite increasing popularity of cryptocurrency in Ukraine and throughout the world, there is no single clear definition of this concept. Therefore, the authors of this article state that cryptocurrency is a digital decentralized currency, a unit of which is a coin cryptographically protected against tampering since it is encrypted information that cannot be copied, while all information about transactions is stored in the blockchain system. Methodology. The study primarily uses comparative methods for the purposes of examination of the approaches taken under different jurisdictions towards cryptocurrency. Additionally, analysis of the body of theoretical literature on the matter was conducted. Results of the study allowed drawing several conclusions on the prospects of further development of the legal framework for cryptocurrencies in Ukraine since nowadays the country is neutral in the issue of using and regulating cryptocurrency and consequently it is losing precious time, because: first, potentially loses money, which could enter the state budget from individuals, who receive income from transactions on cryptocurrency markets; and secondly, the state runs a risk of citizens' rights violation because of no real instruments for their protection. Practical implications of these are proposals to adopt certain amendments to the current legislation in this sphere, including setting up control over brokerage of cryptocurrency, licensing of the industry, and legal definition of the cryptocurrency for the purposes of taxation, etc. Value/originality. The paper represents one of the first comprehensive studies of the current state and prospects of development of the legal framework for the cryptocurrency in Ukraine. Its conclusions provide both proposals for the development of legislation in this sphere and may serve as a basis for the future studies of this topic.
Stephen Chan, Jeffrey Chu, Yuanyuan Zhang, Saralees Nadarajah
In financial trading, cryptocurrencies like bitcoin use decentralization, traceability, and anonymity features to perform transactional activities. These digital currencies, using the emerging blockchain technologies, are forming the basis of the largest unregulated markets in the world. This creates various regulatory challenges, including the illicit purchase of drugs and weapons, money laundering, and funding terrorist activities. This chapter analyzes various legal and ethical implications, their effects, and various solutions to overcome the inherent issues that are currently faced by the policymakers and regulators. The authors present the result of an analysis of 30 recently published peer-reviewed scientific publications and suggest various mechanisms that can help in the detection and prevention of illegal activities that currently account for a substantial proportion of cryptocurrency trading. They suggest methods and applications that can also be used to identify the dark marketplaces in the future.
Dec 28, 2017·Вісник Житомирського державного технологічного університету. Серія: Економічні науки // THE JOURNAL OF ZHYTOMYR STATE TECHNOLOGICAL UNIVERSITY. SERIES: ECONOMICS
Олександр Михайлович Петрук, Оксана Сергіївна Новак
The research deals with the issue of reflection in accounting cryptocurrencies and the ways of solving it through determining the economic essence of such currencies. The purpose of the research is the analysis such economic phenomenon as cryptocurrency and formation of appropriate methodological approaches to its accounting reflection, that requires the identification of the object, the study of the methods of its assessment, the clarification of reflection on the appropriate accounts, the determination of place in reporting.The author generalizes the existed achievements of domestic and foreign researchers about the issues of accounting cryptocurrencies, differentiates between the concept of «cryptocurrency» and «electronic money», and proves that according to a set of features cryptocurrencies do not meet the requirements of the definition of «money», that is why, cryptocurrencies cannot be reflected into the enterprise balance sheet under article «Funds and their equivalents».Using the functional approach to the definition of cryptocurrency as the accounting object and the methods of comparison and analogy, the paper substantiates the order of its reflection as a variety of financial investments applying the special methods of accounting, such as assessment, accounts, and reporting.
Цель работы – проанализировать современные тенденции и состояние международного рынка ведущих криптовалют и оценить возможные перспективы их дальнейшего развития и интеграции в мировую финансовую систему.
 Результаты исследования. Ретроспективно прослежена история происхождения и становления Биткоина (Bitcoin), рассмотрены некоторые особенности «Блокчейн» («Blockchain»). Проанализированы положительные и отрицательные стороны работы с криптовалютами. Рассмотрена ближайшая по капитализации к Биткоину криптовалюта Эфир (Ethereum) и проанализированы основные различия между ними. На основе проведенного исследования сформирован прогноз о наиболее вероятном направлении развития рынка криптовалют на ближайшее будущее и о возможности их интеграции в мировую финансовую систему.
 Теоретическое значение исследования. Настоящее исследование и его результаты будут способствовать решению глобальной научной задачи – формированию научно-обоснованного мнения академической науки к новому феномену в экономике – криптовалютам и их роли в мировой финансовой системе.
 Оригинальность/ценность/научная новизна исследования. Работа является одной из немногих, посвященных новому явлению в экономике – криптовалютам; представлены авторские прогнозы о возможных направлениях дальнейшего развития рынка криптовалют.
 Перспективы дальнейших исследований. Настоящая работа открывает возможность дальнейших исследований в области рынка криптовалют, его дальнейшего развития и интеграции в мировую финансовую систему.
 Тип статьи – эмпирическая.
The article presents the results of a study of a business-engineering project for a commercial bank. The technique of the international standard of business analysis practice BABOK GUIDE v3 (SWOT-Analysis) is used to identify internal and external factors that affect the organization. The commercial bank «Home Credit» was chosen as the object of the study. The aim of the research is to achieve the leading position of a commercial bank among the world's credit institutions by developing a program for the transformation of the enterprise architecture segment. Business process «Lending« was subject to reengineering and reoriented to increase the share of solvent customers through the implementation of the Masterchain platform in the organization's activities. The potential results from the introduction of the «Blockchain» into the business process «Lending» are defined.
The article is aimed at studying the history of origins, the preconditions for development, the main problems of functioning, and the prospects of legalizing the cryptocurrency market in Ukraine. One of the key risks when implementing advances of the IT in the financial sphere is the possibility of physical disappearance of banking system in its classical form because of its inability to compete with new technologies. The most troubling, versus the classical banks, may be considered such new technologies as credit electronic platforms and blockchain. In the recent time the bitcoin course has been growing rapidly, giving all the reasons to consider it primarily a classical «pyramid scheme». The cryptocurrency market may also be characterized a «pyramid scheme» because of the fact that the course of such a currency has not any coverage except increase in the number of participants and investors. Ukraine is not a leader in the international cryptocurrency market, albeit not an outsider. In order to secure a reliable State control of the «gray» cryptocurrency market, which is actually present in Ukraine, the article suggests some necessary actions directed towards legalizing and ordering this phenomenon.
The article analyses the directions of tax management in the context of budgetary decentralization. The paper aims to research tax management in the system of forming local budgets in the conditions of financial resources decentralization and analyze the current tools of tax management on the local level. In spite of a great number of researches, the issue of tax management in strengthening financial independence of local budgets is not enough studied; therefore, to reach financial independence of local communities it is necessary to adopt new normative and legal acts concerning decentralization of financial resources taking into account tax potential of each territorial community. The lack of financial resources causes the problem of optimal redistribution of power among central and local authorities. The author proposes the new mechanisms of solving the current problems on the example of local budget of the city of Uzgorod to contribute budgetary decentralization. The principal idea while conducting the reform of the budgetary process must be the adoption of certain changes in budgetary legislation which have to shift the mechanisms of budgetary financing and equating local budgets. The author concludes that the progressive vector of well-being increasing completely depends on the developed concept of regional economic policy. The article pays attention to the importance of taking into account the tax potential of a territory and characterizes the directions of strengthening financial independence of local government.
The aim of this thesis is to describe the basic functional principles of digital cryptocurrencies and its economical and legal aspects. Digital cryptocurrencies are young and dynamic phenomenon in financial transactions, which represents an alternative to the traditional national currencies. This thesis is divided into three main parts. In the first part the digital currencies and its function is discussed, the economical aspects of digital currencies and its impact on the theory of money are the main theme of the second part. The final, third part is discussing the legal aspects of digital currencies within the Czech legal system. The first part of this thesis introduces digital currencies, the operation of the whole system and also the basic terminology related to the digital currencies, which is necessary for understanding the subject. These essential aspects and features are being mostly illustrated on the case of the oldest and most famous digital currency - bitcoin - in favour of clarity. The second part of this thesis is discussing the economical aspects of digital currencies. The opening of this part is dedicated to the terminology, particularly terms "money" and "currency". Clear definition of these terms and setting out the differences between them in the sense of economic theory is...
The approach to understanding electronic money and their types on the basis of cryptographic technologies and data encryption protocols is disclosed in the article. Electronic money is becoming more popular among Internet users, as payment transactions and additional revenues. This determines the formation of new economic categories and characteristics, which gradually enter the system of modern development of society. Among them we can point out crypto technology, cryptosystems, and crypto economy, trade and money relations. They are based on bitcoin and alternative crypto assets. Modern approaches to understanding crypto currencies and their classification features are analysed. Characteristics that show the advantages over fiat money are given. The directions for the development of the crypto currency market and its surrogates are outlined.
Much significant research has been done to investigate various facets of the link between Bitcoin price and its fundamental sources. This study goes beyond by looking into least to most influential factors-across the fundamental, macroeconomic, financial, speculative and technical determinants as well as the 2016 events-which drove the value of Bitcoin in times of economic and geopolitical chaos. We use a Bayesian quantile regression to inspect how the structure of dependence of Bitcoin price and its determinants varies across the entire conditional distribution of Bitcoin price movements. In doing so, three groups of determinants were derived. The use of Bitcoin in trade and the uncertainty surrounding China's deepening slowdown, Brexit and India's demonetization were found to be the most potential contributors of Bitcoin price when the market is improving. The intense anxiety over Donald Trump being the president of United States was shown to be a positive determinant pushing up the price of Bitcoin when the market is functioning around the normal mode. The velocity of bitcoins in circulation, the gold price, the Venezuelan currency demonetization and the hash rate were found to be the fundamentals influencing the Bitcoin price when the market is heading into decline.
Introduction. Asymmetry of economic development and banking systems updates the necessity for the development of conceptual principles of the regional policy of the banking system of Ukraine through the prism of subsidiarity of national and regional levels. Меthods. Theories of Regional Studies, Finance, Credit theory, theory of state regulation of the economy, spacial development, labor, domestic and foreign scholars on the formulation and implementation of regional policy in the field of banking, abstract and logical, historical, empirical methods of observation and comparison were widely used in the research. Results. It was scientifically grounded the necessity of regional banking system on decentralization principles and subsidiarity distinguishing benefits of development in the economic, social and ideological spheres. New methodical approach in determining the degree of regionalization of the banking system was proposed. Discussion. Further development of regional banking systems is carried out through the development of conceptual bases of the regional policy perspective formation, taking into account the importance of stabilization and modernization breakthrough in providing credit and investment support economic development regions. Further research in this area should be based on the reform of administrative and territorial structure, decentralization of power and transformation functions of the banking system at the national and regional levels.