Navigating Cryptocurrency Regulation

Abstract

Cryptocurrency, based on block-chain technology is defined as a decentralized digital peer-to-peer currency. The emergence of cryptocurrency is a boon for future economy; it has been tagged along with innumerable practical and legal issues including risks associated with consumer's protection such as theft, misinformation, and unpredictability; complexity surrounding the legal characterization of cryptocurrencies, illegal activities driven through cryptocurrencies and lack of uniform comprehensive global legislation to address the issues and challenges associated with it. Though valiant efforts have been made by few countries like Canada, United Kingdom, Switzerland, El Salvador etc. to formulate broad range of rules and regulations for digital currency but other developed and developing economies has largely remained silent on the debate surrounding the regulation of cryptocurrencies. This chapter seeks to explore into risk posed by digital currency and provide a need for formulation of legal structure appropriate for regulating the cryptocurrencies.