Current trends, concerns and peculiarities of the turnover of cryptocurrency

Economic Annals-ХХI: Volume 168, Issue 11-12, Pages: 69-72

Citation information:
Lukianchuk, R., Grebeniuk, M., & Cherniak, A. (2017). Current trends, concerns and peculiarities of the turnover of cryptocurrency. Economic Annals-XXI, 168(11-12), 69-72. doi: https://doi.org/10.21003/ea.V168-14

Ruslan Lukianchuk
PhD (Public Administration),
Senior Researcher,
Interagency Scientific and Research Centre on Problems of Combating Organised Crime under the National Security and Defense Council of Ukraine
1 Solomyanska Sq., Kyiv, 03035, Ukraine
lukianchuk.Ruslan@rada.gov.ua
ORCID ID: https://orcid.org/0000-0003-1080-2878

Maksym Grebeniuk
PhD (Legal Sciences),
Assosiate Professor,
Honored Lawyer of Ukraine,
Head of the Interagency Scientific and Research Centre on Problems of Combating Organised Crime under the National Security and Defense Council of Ukraine
1 Solomyanska Sq., Kyiv, 03035, Ukraine
max-felix@ukr.net
ORCID ID: https://orcid.org/0000-0003-1249-5576

Andrii Cherniak
PhD (Legal Sciences),
Senior Researcher,
Interagency Scientific and Research Centre on Problems of Combating Organised Crime under the National Security and Defense Council of Ukraine
1 Solomyanska Sq., Kyiv, 03035, Ukraine
ironsteel1997@gmail.com
ORCID ID: https://orcid.org/0000-0003-1803-0673

Current trends, concerns and peculiarities of the turnover of cryptocurrency

Abstract. Sponsorship of international terrorism and transnational criminal activity poses a significant threat to the financial system, and due to the rapid expansion of payment opportunities in the Internet, risks have increased significantly, which requires a study of foreign legal experience and the development of a law enforcement strategy to control the circulation of the cryptocurrency.

The authors have come to the following conclusions. The use of cryptocurrencies is a promising way to maintain economic development by applying modern accounting and information technologies. International experience clearly demonstrates the importance and role of cryptocurrencies in the activities of transnational criminal groups relating to the financing of terrorism and human trafficking. In the context of globalisation and implementation of the European integration in Ukraine, the turnover of cryptocurrencies needs to be regulated at the legislative level. Thus, it is necessary to accelerate the approval of the Draft Law «On the turnover of cryptocurrency in Ukraine» No. 7183 as of 06 October 2017. It is advisable to introduce a system of registration (licencing) of crypto-currency exchange and exchangers at the national level. At the same time, it is necessary to impose an obligation on cryptoexchangers to collect information about customers. Also, it is necessary to regulate activities of companies that sell goods and services to customers for cryptocurrency, as it is accepted by PayPal, Braintree and other payment systems.

Keywords: Electronic Money; Cryptocurrency; Virtual Currency; Bitcoin; Miners

JEL Classification: F30; K30; О10

DOI: https://doi.org/10.21003/ea.V168-14

Referenes

1. Chohan, U. (2017). Cryptocurrencies: A Brief Thematic Review. Social Science Research Network Electronic Journal.
   doi: https://doi.org/10.2139/ssrn.3024330
2. PaySyst.ru (2013). Cryptocurrencies as peer-to-peer systems and means of payment.
   Retrieved from http://paysyst.ru/crypto-payment-system.html (in Russ)
3. Ponsford, M. (2015). A Comparative Analysis of Bitcoin and Other Decentralised Virtual Currencies: Legal Regulation in the People’s Republic of China, Canada and the United States. Hong Kong Journal of Legal Studies, 9.
   doi: https://doi.org/10.2139/ssrn.2554186
4. Polasik, M., Piotrowska, A., Wisniewski, T. P., Kotkowski, R., & Lightfoot, G. (2014). Price Fluctuations and the Use of Bitcoin: An Empirical Inquiry. International Journal of Electronic Commerce 20(1), 9-49.
   doi: https://doi.org/10.2139/ssrn.2516754
5. Nakamoto, S. (2009). Bitcoin: A Peer-to-Peer Electronic Cash System.
   Retrieved from https://bitcoin.org/bitcoin.pdf
6. FATF Recommendations (2015). Virtual currency.
   Retrieved from http://www.sdfm.gov.ua/content/file/Site_docs/2016/20160805/rek 2.doc (in Ukr.)
7. Quinn, S. (2017). Bitcoin Hard Fork August 1st – What Is Happening, Latest Development That Investors Should Know. Ethereum World News.
   Retrieved from http://ethereumworldnews.com/bitcoin-hard-fork-august-1st-happening-latest-development-investors-know
8. Karlstrøm, H. (2014). Do libertarians dream of electric coins? The material embeddedness of Bitcoin. Distinktion: Scandinavian Journal of Social Theory, 15(1), 23-36.
   doi: https://doi.org/10.1080/1600910X.2013.870083
9. Kokott (2015, July 1). Opinion of Advocate General Kokott. Case C-264/14 Skatteverket v David Hedqvist. Digital reports (Court Reports – general).
   Retrieved from https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A62014CC0264
10. Royal United Services Institute for Defence and Security Studies (RUSI) (2017). Official web-site.
    Retrieved from https://rusi.org
11. HM Treasury (2017). National risk assessment of money laundering and terrorist financing 2017. NRA. Policy paper. London.
    Retrieved from https://www.gov.uk/government/publications/national-risk-assessment-of-money-laundering-and-terrorist-financing-2017
12. Poshtivka (2017). Fraud with the use of cryptocurrency stopped in Kyiv.
    Retrieved from https://poshtivka.org/shahrajstvo-z-vykorystannyam-kryptovalyuty-prypynyly-u-kyyevi (in Ukr.)
13. Glavcom (2017). An illegal Bitcoin factory found at the Paton Institute.
    Retrieved from https://glavcom.ua/news/v-instituti-patona-viyavili-nezakonnu-fabriku-bitcoin-430455.html (in Ukr.)
14. National Bank of Ukraine (2014). Clarification of the National Bank of Ukraine regarding the lawful use of Bitcoin virtual currency.
    Retrieved from https://www.bank.gov.ua/control/uk/publish/article?art_id=11879608 (in Ukr.)
15. National Bank of Ukraine (2017). The High Council of Experts urged regulators of the financial market to determine the legal status of cryptocurrency in Ukraine.
    Retrieved from https://bank.gov.ua/control/uk/publish/article?art_id=57795435 (in Ukr.)
16. Verkhovna Rada of Ukraine (2017). Draft Law «On the turnover of cryptocurrency in Ukraine» No. 7183 as of 06.10.2017.
    Retrieved from http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=62684 (in Ukr.)

Received 11.11.2017