Europe in the digital age: regulating digital finance without suffocating innovation

Pavlidis, Georgios

doi:10.1080/17579961.2021.1977222

Cited by 18 publications

(20 citation statements)

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“…The exponential growth of the cryptocurrency market in the past 10 years and the potentials and risks associated with it render the existing EU "'watch and wait strategy towards regulating such cryptocurrency is no longer appropriate and justifiable" (Pavlidis, 2021a). The EU also issued a number of reports regarding the applicability of current financial regulation to cryptocurrency (ESMA, 2019;European Banking Authority, 2019).…”

Section: Regulatory Framework Of the European Unionmentioning

confidence: 99%

“…These initiatives intend to curb money laundering and terrorism financing, ensuring consumer and investor protection and bringing legal certainty, market integrity and financial stability. Pavlidis asserted that despite all these initiatives, it is time to observe "whether EU norm-building processes can keep pace with technological and market developments, given that development of policies and legislation at the EU level typically follows multi-year gestation cycles" (Pavlidis, 2021b).…”

Section: Regulatory Framework Of the European Unionmentioning

confidence: 99%

“…Bitcoin, at present, is considered the most successful and widely used cryptocurrency (Katsiampa, 2017; Peters et al , 2015). Cryptocurrencies are a popular means of payment on Dark Web marketplaces because they enable anonymous transactions.…”

Section: Cryptocurrency’s Role In Effectuating Crime On the Darknetmentioning

confidence: 99%

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Cryptocurrency in the Darknet: sustainability of the current national legislation

Dhali

Hassan

Mehar

et al. 2023

IJLMA

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Purpose The purpose of the study is to show that divergent perceptions among regulators, the regulated and the associated regulatory bodies across multiple jurisdictions regarding the nature and functionality of cryptocurrencies hamper the development of a more comprehensive and coherent regulatory framework in curbing crimes and other related risks associated with cryptocurrencies. Design/methodology/approach The study has used a descriptive doctrinal legal research method to investigate and understand the insights of existing laws and regulations in four selected jurisdictions concerning cryptocurrencies and how these laws could be further improved and developed to reduce crypto-related crimes. Furthermore, the study has also used a comparative research method to conceptualize the contours of the new legal discourse emerging from cryptocurrencies to adopt and implement a sound regulatory framework. Findings The study illustrated that divergent regulatory treatment among different jurisdictions might suffocate novel digital innovations such as cryptocurrency. These fragmented regulatory approaches by various jurisdictions question the sustainability of the present national legislation adopted to regulate cryptocurrencies. Looking into other jurisdictional developments in regulating cryptocurrencies, it is apparent that a concerted regulatory approach is needed to minimize the abuse of this innovation. Research limitations/implications The study has implications for regulators and policymakers to review the current regulatory framework for regulating cryptocurrencies to prevent regulatory arbitrage. The divergent legislative measures concerning cryptocurrency among different jurisdictions question the sustainability of these legislative initiatives, considering the evolving and borderless nature of cryptocurrency. Therefore, this paper will help regulators to consider the present legislative gaps in establishing a common global regulatory approach in the crypto sphere. Originality/value The study contributes to the existing body of literature by examining the regulatory frameworks of four jurisdictions, namely, the USA, Canada, China and the EU, related to cryptocurrencies, with a discussion on the development of cryptocurrencies-related laws among these four jurisdictions and their sustainability in curbing crimes in the Darknet.

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Section: Regulatory Framework Of the European Unionmentioning

confidence: 99%

Section: Regulatory Framework Of the European Unionmentioning

confidence: 99%

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Cryptocurrency in the Darknet: sustainability of the current national legislation

Dhali

Hassan

Mehar

et al. 2023

IJLMA

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“…There is also the argument that digital finance regulation should create an enabling environment to nurture innovation and create a level playing ground for incumbent players in the digital finance ecosystem while at the same time providing regulatory sandboxes to protect new digital finance players that are in their early stages of development (see Shulist, 2018;Alam et al, 2019). The aim of digital finance regulation is to meaningfully regulate digital finance without stifling innovation (Pavlidis, 2021). And when a digital finance regulatory has been developed, there should be continuous improvements to the regulatory framework from time to time (Zetzsche et al, 2020b).…”

Section: Review Of Post-2010 Digital Finance Researcha Concise Summarymentioning

confidence: 99%

Digital finance research and developments around the World: a literature review

Ozili¹

2022

IJBFMI

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This paper presents a concise review of the existing digital finance research in the literature, and highlight some of the developments in digital finance around the world. The paper reached several conclusions. Firstly, it showed that digital finance has become an important part of modern finance and the major application of digital finance can be found in Fintech, embedded finance, open banking and decentralized finance, central bank digital currencies, among others. Secondly, it identified some international determinants of digital finance which includes the need for efficiency in financial services delivery, the need to achieve the United Nations sustainable development goals using existing digital technologies, the need to increase financial inclusion through digital financial inclusion and the need for efficient payments and payment settlement finality. The paper also finds that digital finance research is growing fast, and recent studies have investigated contemporary issues in digital finance that are relevant for policy and practice. Regarding the digital finance developments around the world, the paper shows that the Fintech and mobile money industries are the largest beneficiary of investments in digital finance with the total number of users of mobile money services surpassing 1 billion globally. Also, the paper predicts that the future of digital finance is to create a digital environment that permits the offering of all kinds of financial product and services that can be customized and personalized to meet the unique needs of all users on a single digital platform and without requiring any form of human assistance or intermediary. The paper then suggest some areas for future research which include the need for more research on how regulators can keep pace with emerging digital finance transformation, the need for more research on user information security and compliance, the need for more research on how to deal with bias caused by bad data, the need for more research on how to deal with algorithmic bias, and the need for more research on how to combine a risk-conscious culture with a higher risk appetite for digital finance transformation.

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“…que se desploma el precio nuevamente, pues se trataba de información que carece de fundamento económico.De otra parte, se generan retos interesantes entre los cuales se encuentran: a) Países en los cuales se ha regulado parcialmente la operación con criptomonedas, como es el caso de los Estados Unidos de América, donde se evalúa entre otras condiciones, si las dificultades económicas de las entidades que operan con criptoactivos deberían estar amparadas bajo la ley de quiebras, dada la alta volatilidad(McDermott, 2021). b) En los países o áreas geográficas en las cuales no se ha iniciado la regulación y se estudia la posibilidad de lograr unificar la normatividad al respecto, como es el caso de la Unión Europea(Pavlidis, 2021), para lo cual el parlamento europeo está analizando la propuesta conocida como Mercados en Cripto-Activos (MiCA 4 por sus siglas en inglés). c) La dificultad en la determinación de la base para el cálculo de los impuestos, así como su territorialidad teniendo en consideración que las transacciones pueden ser efectuadas por cualquier persona mediante una conexión a la red de Internet, independientemente de su ubicación geográfica(Sánchez et al, 2019) y algunos terceros con interés de permanecer en el anonimato.…”

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Prospecting non-fungible tokens in the digital economy: Stakeholders and ecosystem, risk and opportunity

2022

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Europe in the digital age: regulating digital finance without suffocating innovation

Cited by 18 publications

References 0 publications

Cryptocurrency in the Darknet: sustainability of the current national legislation

Cryptocurrency in the Darknet: sustainability of the current national legislation

Digital finance research and developments around the World: a literature review

Prospecting non-fungible tokens in the digital economy: Stakeholders and ecosystem, risk and opportunity

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