The problem of insufficient legal regulation in the trading and issuance of cryptocurrencies
Coordinator
583 - University of Ljubljana, Faculty of Law
Manager
izr. prof. dr. Gregor Dugar
Period
1. 2. 2018 - 30. 6. 2018
Key Information
Project type: Creative Path to Practical Knowledge (PKP) – academic year 2017/18
Project title: The problem of insufficient legal regulation in the trading and issuance of cryptocurrencies
Project team:
- Students: Kristina Jan, Iva Černe, Uroš Dukič, Vita Reya, Erika Bizant, Jera Hrovat, Mojca Simčič, and Jakob Vrhovec
- Main educational mentor and coordinator: Assoc. Prof. Dr. Gregor Dugar
- Work mentor: Nina Kranjec
- Other educational mentor: Prof. Dr. Marko Pahor
Financers:
Project Description
The project aimed to facilitate the transition to a new era of business for all users and legislators, expanding financing opportunities and consequently making it easier for innovative individuals to break into the market successfully. The first problem in this area is classifying cryptocurrencies under existing securities legislation, and the question is whether the two even belong together. We sought to answer this question by studying foreign regulations, researching the literature, and consulting with regulators and practitioners. Another problem is the lack of tax legislation and tax treatment of cryptocurrencies. As a result, service providers and investors do not know what to include in the tax base. The opinions of the various competent institutions differ, and none has taken a clear position on this issue, which only shifts responsibility. The third problem concerns money-laundering and personal-data regulations, which are also controversial among service providers. Different institutions have taken different positions on this; the compatibility of the Personal Identification Card Act and the Money Laundering and Terrorist Financing Prevention Act is particularly problematic. The fourth problem is the definition of cryptocurrencies as a means of payment. The most crucial goal of the project team was to find a solution to the above-mentioned specific problems for the participating company, which they achieved by producing an in-depth written report in which they analyzed the current situation and presented their findings for improving legal regulation in the field of cryptocurrencies and the issuance of new virtual currencies.