According to the Public Relations of the Monetary and Banking Research Institute, the abstract of this article states: Legislators in the financial and money markets have many problems in agreeing on cryptocurrencies. Given the complexity of the legislative process in cryptocurrencies and disagreements in this area, this report is devoted to this subject, emphasizing cryptocurrencies. In the case of cryptocurrencies, there are severe differences in their classification and definition for each. Recently, a warning about the risks of virtual currencies to consumers has been issued. Also, extensive research has been conducted on the potential risks of these types of assets. The need to establish rules and regulations for this type of asset is emphasized by many international organizations, which we will examine in this report.
Central bank-level regulators need to address the issue of the difference between cryptocurrencies and encrypted assets. In this area, the nature and classification depending on the functions of each is important. Structural challenges and legal ambiguities, pros and cons, and different approaches to the digital currency business are among the controversial issues. Encrypted assets are digital representations of assets that create space for micro-investments in the country by tokenizing assets and activating frozen assets. Lack of consensus on terms, definitions, and classifications can be a major obstacle to building a strong regulatory framework and may impede greater regulatory coordination in financial markets. Given the inherent nature of cryptocurrency transactions, a clear interpretation of terms among regulators may facilitate monitoring.
On the other hand, improving data collection on cryptographic activities - both domestically and internationally - is important for observers to understand the risks and opportunities that could significantly affect their regulatory objectives. A broader and more accurate empirical data set can be obtained directly from market participants or other regulatory bodies.
In this report, the existing regulatory requirements were examined, and their relationship with cryptocurrencies was identified. Necessary improvements and proposed measures were also provided to improve regulations. According to the international standards set out in the report of each cryptocurrency, depending on the area in which it operates, the institution will have its legal guardian.
Specifically, it can be suggested that the central bank should select and establish its exchange systems and infrastructure. Also, the central bank in the country should prevent the purchase and sale of foreign exchange from the extraction of cryptocurrencies for commercial purposes. Taxation in the field of cryptocurrencies is also the key to transparency in this area.
Download the full report here.