Proceedings of The 4th International Conference on Applied Research in Business, Management and Economics
Regulation of Cryptocurrencies in the European Union – Impact of European regulatory notifications on the cryptocurrency market
Kamil Winnowicz, Cam-Duc Au, and Dirk Stein
Driven by the economic crisis in 2007 and the resulting distrust of governments and banks, Bitcoin is one of many conceivable applications that the blockchain technology behind it enables. Cryptocurrencies are primarily traded on unregulated online exchanges and deviate significantly from the original intention as an independent means of payment. Thus, the regulatory authorities are currently working hard on developing guidelines on how to put a legal framework around the vastly developing digital assets. The aim of this paper is to review the current regulatory guidelines for cryptocurrencies in the European area and to present the ongoing development. Furthermore, with the help of quantitative research technique, more in-depth knowledge and classification approaches are used to gain a broader impression of the regulation of cryptocurrencies. In doing so, measures are highlighted that serve to combat illegal use of the new currency. The regulations for the interoperability of cryptocurrencies with regulated financial companies must also be questioned to derive further insights into the influence on the Bitcoin price. The results show that individual countries such as Germany, Switzerland and Liechtenstein are more advanced in terms of the regulatory system for cryptocurrencies. However, these countries are too small and have an insignificant trade volume in relation to China and the USA, after which these countries could play a relevant role on the world market. If the European states do not act as a joint entity with the EU financial authorities on the world market, then international states will have a far lead and shape regulatory measures in the future.
keywords: Bitcoin, Blockchain, Digital Assets, Cryptocurrency, Regulation.