LEGAL CHALLENGES IN CRYPTOCURRENCY REGULATION

Abstract

This article proposes an analysis of emerging legal challenges in the cryptocurrency scenario, notably Bitcoin and Ethereum, requiring a careful legislative approach. The general objective is to examine legal obstacles in this context, highlighting four pressing challenges. The chosen methodology is analytical, aiming to break down and thoroughly analyze the constituent elements of the legal challenges of cryptocurrencies. A crucial challenge involves the search for regulations that reconcile technological innovation with public safety, especially against criminal activities. Identifying participants in transactions and enforcing strict compliance measures by exchanges are essential considerations. Taxation of cryptographic transactions, given their decentralized nature, emerges as an additional challenge. Tax authorities face the complexity of ensuring the proper reporting and taxation of these transactions, requiring innovative approaches. Protecting investors constitutes another significant challenge, given the inherent volatility of cryptocurrencies. The formulation of regulations that guarantee transparency, accountability and investor security, with a focus on initial coin offerings (ICOs), is an imperative need. Finally, the regulation of cryptocurrencies transcends borders, requiring international cooperation efforts. Harmonization of regulations globally is vital to address jurisdictional challenges and ensure a cohesive approach on a global scale. The expected results include balanced regulation that promotes technological innovation, protects investors, ensures adequate taxation and promotes global cooperation. The analytical methodology provides a solid framework for unraveling these complex challenges, guiding the formulation of adaptive and effective regulations.