Regulatory Challenges and Consumer Protection in the Context of the Growth of Electronic Money in Ukraine: A Literature Review
Article Sidebar
Main Article Content
Abstract
The fast growth of e-money has offered great opportunities but has also introduced regulatory challenges especially in Ukraine. This paper seeks to explore some issues associated with regulating e-money by analyzing relevant regulatory documents, interviewing selected stakeholders and conducting a survey on e-money users and providers. The analysis reveals that there are very serious issues such as inconsistencies in regulations, poor levels of protection for consumers and problems related to enforcement of those regulations. For example, it is because of these huge gaps in regulatory frameworks that consumers are left confused and not complying with anything. The current process of improving harmonization and oversight is evaluated too showing how far we have gone and what still needs to be done. This study emphasizes on how important it is to take a more comprehensive approach to regulation so as to close those gaps effectively. Such an approach includes creating an overarching reform plan in order to increase protection for consumers, promote consistency in regulation and facilitate the stable expansion of e-money systems. This all-encompassing approach is essential for accommodating the fluid character of digital financial transactions while taking advantage of the benefits associated with e-money as well as reducing its risks.
Downloads
| Abstract views: 216 | PDF Downloads: 175 |
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Adrian, T., & Mancini-Griffoli, T. (2021). The rise of digital money. Annual Review of Financial Economics, 13(1). https://doi.org/10.1146/annurev-financial-101620-063859
Alex, T. D. T. (2018). Blockchain revolution: How the technology behind bitcoin is changing money, business, and the world. Penguin Canada.
Arvidsson, N. (2019a). History of money: In the eye of the beholder. In SpringerBriefs in economics (pp. 9–22). Springer International Publishing. https://doi.org/10.1007/978-3-030-10689-8_2
Arvidsson, N. (2019b). Money: The greatest innovation in the history of humanity. In SpringerBriefs in economics (pp. 1–7). Springer International Publishing. https://doi.org/10.1007/978-3-030-10689-8_1
Bal, A. (2015). Taxing virtual currency: Challenges and solutions. Intertax, 43(Issue 5), 380–394. https://doi.org/10.54648/taxi2015033
Bank of America - banking, credit cards, loans and merrill investing. (n.d.). Bank of America. https://www.bankofamerica.com
Bank, T. W. (2018). Global findex database 2017: Measuring financial inclusion and the fintech revolution. World Bank Publications.
Basu, S., Sreenivasan, R., & Tang, T. (2014). Bitcoin – bubble or reality? Computer Law Review International, 15(3). https://doi.org/10.9785/cri-2014-0304
Bitcoin and cryptocurrency technologies: A comprehensive introduction. (2016). Princeton University Press.
Bitir-Istrate, I., Gheorghiu, C., & Gheorghiu, M. (2021). The transition towards an environmental sustainability for Cryptocurrency mining. E3S Web of Conferences, 294, 03004. https://doi.org/10.1051/e3sconf/202129403004
Böhme, R., Christin, N., Edelman, B., & Moore, T. (2015). Bitcoin: Economics, technology, and governance. Journal of Economic Perspectives, 29(2), 213–238. https://doi.org/10.1257/jep.29.2.213
Broby, D., & Quimbayo, C. V. (2021). The regulation of initial coin offerings, virtual assets and virtual asset service providers. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3946331
Catalini, C., & Gans, J. S. (2016). Some Simple Economics of the Blockchain. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2874598
Cheah, E.-T., & Fry, J. (2015). Speculative bubbles in Bitcoin markets? An empirical investigation into the fundamental value of Bitcoin. Economics Letters, 130, 32–36. https://doi.org/10.1016/j.econlet.2015.02.029
Cryptocurrency prices, charts and market capitalizations | coinmarketcap. (n.d.). CoinMarketCap. https://coinmarketcap.com
Cryptocurrency prices, portfolio, forum, rankings. (n.d.). CryptoCompare. https://www.cryptocompare.com
Dawood, O. A., Hammadi, O. I., & Mohammed, F. M. (2019). Secure symmetric block cipher design for encrypting the bitcoin wallets in cryptocurrencies applications. Journal of Computer Science, 15(5), 758–768. https://doi.org/10.3844/jcssp.2019.758.768
Demirguc-Kunt, A., Klapper, L., Singer, D., & Van Oudheusden, P. (2015). The global findex database 2014: Measuring financial inclusion around the world. The World Bank. https://doi.org/10.1596/1813-9450-7255
Dittmar, L., & Praktiknjo, A. (2019). Could Bitcoin emissions push global warming above 2 °C? Nature Climate Change, 9(9), 656–657. https://doi.org/10.1038/s41558-019-0534-5
Electronic money directive. (2018). In A guide to financial regulation for fintech entrepreneurs (pp. 183–185). John Wiley & Sons, Ltd. https://doi.org/10.1002/9781119436775.ch17
European central bank. (n.d.). European Central Bank. https://www.ecb.europa.eu/home/html/index.en.html
Foley, S., Karlsen, J. R., & Putniii, T. J. (2018). Sex, drugs, and bitcoin: How much illegal activity is financed through cryptocurrencies? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3102645
Foley, S., Karlsen, J. R., & Putniņš, T. J. (2019). Sex, drugs, and bitcoin: How much illegal activity is financed through cryptocurrencies? The Review of Financial Studies, 32(5), 1798–1853. https://doi.org/10.1093/rfs/hhz015
Hardjono, T., Lipton, A., & Pentland, A. (2020). Toward a public-key management framework for virtual assets and virtual asset service providers. The Journal of FinTech, 2050001. https://doi.org/10.1142/s2705109920500017
Hrytsai, S. O. (2022). Digital money in ukraine – cbdc? Juridical Scientific and Electronic Journal, (4), 247–249. https://doi.org/10.32782/2524-0374/2022-4/57
Joseph, B., F. E., Andrew, M., & Steven, G. (Eds.). (2016). Bitcoin and cryptocurrency technologies: A comprehensive introduction. Princeton University Press.
Kozii, N., & Chernyshova, T. (2020). Analysis of the functioning of electronic money in Ukraine. Business Navigator, 2(58). https://doi.org/10.32847/business-navigator.58-17
Lesko, N. V., Slyvka, M. M., & Krasko, S. A. (2019). Legal regulation of electronic money in Ukraine. Comparative-Analytical Law, 6, 279–282. https://doi.org/10.32782/2524-0390/2019.6.70
Lishchynska, V. O. (2019). Legal regulation of cryptocurrency circulation in the world. Comparative-Analytical Law, 4, 246–249. https://doi.org/10.32782/2524-0390/2019.4.68
Martin, V. (2021). Central Bank digital currencies. Bankarstvo, 50(3), 109–139. https://doi.org/10.5937/bankarstvo2103109m
Money Transfers. (2011). In Money Laundering (pp. 190–203). Routledge.
Mora, C., Rollins, R. L., Taladay, K., Kantar, M. B., Chock, M. K., Shimada, M., & Franklin, E. C. (2018). Bitcoin emissions alone could push global warming above 2°C. Nature Climate Change, 8(11), 931–933. https://doi.org/10.1038/s41558-018-0321-8
Münyas, T., & Atasoy, F. (2021). An Empirical Investigation of the Relationship between Bitcoin and Developed and Developing Country Stock Markets. journal of accounting finance and auditing studies (JAFAS), 7(3), 104–120. https://doi.org/10.32602/jafas.2021.021
National Bank of Ukraine. (n.d.). National Bank of Ukraine. https://bank.gov.ua
Novo, O. (2018). Blockchain meets iot: An architecture for scalable access management in iot. IEEE Internet of Things Journal, 5(2), 1184–1195. https://doi.org/10.1109/jiot.2018.2812239
OECD. (2020). Taxing virtual currencies: An overview of tax treatments and emerging tax policy issues. Organisation for Economic Co-Operation and Development (OECD).
Powell, M. (2015). Bitcoin: Economics, technology, and governance. CFA Digest, 45(7). https://doi.org/10.2469/dig.v45.n7.15
Radziwill, N. (2018). Blockchain revolution: How the technology behind bitcoin is changing money, business, and the world. Quality Management Journal, 25(1), 64–65. https://doi.org/10.1080/10686967.2018.1404373
Schilling, L., & Uhlig, H. (2018). Some simple bitcoin economics. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3155310
Secure payment processing. (2013). British Dental Journal, 214(12), 650. https://doi.org/10.1038/sj.bdj.2013.621
Sinelnikova-Muryleva, E. V. (2020). Central bank digital currencies: Potential risks and benefits. Voprosy Ekonomiki, (4), 147–159. https://doi.org/10.32609/0042-8736-2020-4-147-159
Squarepants, S. (2008). Bitcoin: A peer-to-peer electronic cash system. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3977007
Stack, G. (2015). Money laundering in Ukraine. Journal of Money Laundering Control, 18(3), 382–394. https://doi.org/10.1108/jmlc-05-2014-0013
State Service for Special Communications and Information Protection of Ukraine (n.d.). Gov.Ua. Retrieved September 17, 2021, from https://cip.gov.ua/en
The Financial Action Task Force (FATF) (n.d.). Home. https://www.fatf-gafi.org
The Law The Law Library of Congress. (2019). Regulation of cryptocurrency around the world. Independently Published.
The rise of public and private digital money. (2021). Policy Papers, 2021(055), 1. https://doi.org/10.5089/9781513592039.007
Verkhovna Rada of Ukraine (2008). On Approval of Regulation on Electronic Money in Ukraine: Letter of the National Bank of Ukraine No. 25-212/1645-10454 dated 30.07.2008. https://zakon.rada.gov.ua/laws/show/v1045500-08#Text
Voigt, P., & von dem Bussche, A. (2017). Practical implementation of the requirements under the GDPR. In The EU General Data Protection Regulation (GDPR) (pp. 245–249). Springer International Publishing.https://doi.org/10.1007/978-3-319-57959-7_10
Whisker, J., & Lokanan, M. E. (2019). Anti-money laundering and counter-terrorist financing threats posed by mobile money. Journal of Money Laundering Control, 22(1), 158–172. https://doi.org/10.1108/jmlc-10-2017-0061
Wright, C. S. (2008). Bitcoin: A peer-to-peer electronic cash system. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3440802