Virtual Currency

Predostreté dielo predstavuje záverečný výstup z riešenia projektu VVGS-2019-1068 s názvom „Blockchain technológia ako činiteľ ovplyvňujúci súčasnú podobu práva“ a bolo vytvorené zároveň ako jeden z čiastkových výstupov z projektu APVV-19-0124 s názvom „Daňové právo a nové javy v ekonomike (digitálne služby, zdieľaná ekonomika, virtuálne meny)“. Čiastočné prekrytie predmetu výskumu jednotlivých projektov umožnilo takýto výskum, a to najmä pokiaľ ide o výskumnú úlohu týkajúci sa digitálnych (virtuálnych) platidiel.

Acquiring and transacting Virtual Goods is now an established practice in online games, social networks and virtual worlds. These goods are in essence, digital code, and have no intrinsic value, yet their perceived value is such that the sum of micropayments for millions of digital items is in excess of $5billion USD annually, with notably high growth rates, particularly in the 5-16 age group.

This paper is the introduction to a themed edition of the 'Journal of Virtual Worlds Research, Vol 2 No 4', published in February 2010,' entitled 'Virtual Economies ,Virtual Goods and Service Delivery in Virtual Worlds'. The aim of our paper is to contextualise current trends, plotting the path and erecting some historical signposts along the way.

Bitcoin, also known as a decentralized virtual currency (DVC), is regulated differently in the People’s Republic of China (PRC), Canada, and the United States, and represents a vastly underdeveloped area of the law. No country has currently backed Bitcoin. Launched in 2009, and founded by Satoshi Nakamoto,  Bitcoin is a “decentralized peer-to-peer virtual currency.” Other virtual currencies include Litecoin, Namecoin, Auroracoin, Peercoin, and Dogecoin – about 500 varieties in total – but research here primarily focuses on Bitcoin. A comparative analysis helps discern how these respective countries classify Bitcoin (e.g., a virtual object, currency, or potential security), and how these jurisdictions regulate, or intend to regulate, DVCs. Bitcoin is identified as a “currency,” throughout the paper, but the classification is heavily contested. Questions for analyses include: are there appropriate existing legal frameworks to regulate Bitcoin? What securities regulation challenges does Bitcoin pose? What are the consumer and investor protection concerns associated with Bitcoin compared to traditional financial exchanges? What are the cross-jurisdictional challenges of virtual currency transactions that operate over the Internet (e.g., money laundering, or fraudulent activities)? Research incorporates securities commission reports, social and political commentary from secondary sources, and relevant jurisprudence and legislation. Findings help situate the current climate of Bitcoin globally, and assess how its regulation differs relative to technological, economic, social, financial, and political forces.

What if one could build a virtual world with effective open borders, in a consensual and cooperative way? The Virternity project proposes a benign and positive outlook to the future of humanity’s adventure into the virtual realm and the increasing mergence with the digital world. There is perhaps a sense of inevitability about the move towards a future where humans span both the physical and digital world. Seen as a whole, the Virternity project is an encompassing idea, its aims and goals are by no means small in intention or in scope. What is or is not achievable may not be answered in this book but certainly, this is an attempt to address the challenges that lie ahead with reference to current developments and similar endeavours that are already in existence. What the reader may elicit from this book is the potential of the ideas that the Virternity project has expressed and that much of what is proposed is certainly possible or may be in the future.

Digital currencies, virtual currencies, in-game currencies, etc., have gathered a lot of attention, despite the difficulties of definition, from all corners of society for many years. Cryptocurrency has gained unprecedented attention since the birth of Bitcoin in 2009. Bitcoin is an online system of making and receiving payments in bitcoins. The system distinguishes itself by providing an open-source, cryptographically secure, confidentiality-preserving platform for transactions and/or making payments. The number of transactions as well as the number of accounts (held by individuals and businesses) is steadily increasing. A whole industry of service-providers has sprung up alongside. We consider the development of Bitcoin and its sister currencies as an important disruptive financial innovation which is here to stay unless throttled by ill-considered legislative or regulatory actions. Potential problems are analyzed and solutions offered. The overall assessment is that cryptocurrencies and variants of virtual currencies are a welcome development, they will offer competition to the existing modalities of money and governmental regulation, they will provide alternative means to economic agents for their transactions, and their innovative existence should be encouraged so that their beneficial features outperform any deleterious ones.

A la suite de l'adoption de la loi sur l'économie sociale et solidaire (loi ESS), nous présentons le nouveau cadre juridique des monnaies locales en droit français (p.63 et p.138 pour les Système d'échange locaux).

Following the French law passed in July 2014, we draw the first legal pictures of local (p. 63) and community currencies (p.138).

Autori v príspevku skúmajú veľmi aktuálnu problematiku zdaňovania virtuálnych mien ako jedného z nových javov, ktoré so sebou prináša oblasť zdaňovania digitálnej ekonomiky. Po klasifikácii nových javov v digitálnej ekonomike sa autori zamerajú spočiatku na vymedzenie pojmu digitálnej dane, ktorej existencia je výsledkom priemyselnej revolúcie 4.0, a identifikovania jej postavenia v teórii daňového práva. Následne budú skúmať aktuálny stav de lege lata ohľadom zdaňovania virtuálnych mien, ale aj ich podstaty a ich základných všeobecno-teoretických otázok, ktorých zodpovedanie predurčí ich potenciálne ďalšie skúmanie. Cieľom príspevku je stanovenie pojmu digitálnej dane a určenie základných východísk realizácie virtuálnych mien v kontexte ich zdaňovania.

Central banks seek to meet the public's need for digital currencies, manifested in the increasing use of private virtual currencies, thereby avoiding the more damaging consequences of such private currencies. However, Commercial bank money has been digital for decades, and we already use digital means of payment daily. Central banks already provide wholesale digital money to banks.

Ecommerce relies on financial institutions to serve as third party to process electronic payments. The traditional model is characterized by the disputable
reversible transactions. In developing countries this feature has become a stumbling block for the progress of ecommerce. This has led to the invention of virtual
money. In 2008, Satoshi Nakamoto introduced a new virtual currency model called Bitcoin. The goal of this payment system is to eliminate the financial
intermediaries with trust in “proof of work”(PoW). This relatively new crypto currency does have many legitimate and quickly growing uses, and best known for
its popularity with criminal and shadowy internet figures. Recently, FBI became the largest owner of this Bitcoin, when it closed down the internet market place
Silk Road transactions. This paper explores the concept and usage of this decentralized cryptographic currency. Growing technological advancement has
triggered the popularity of virtual money and that of bit coin, though the idea of cryptographic electronic currencies came up more than two decades ago. It also
looks into the SWOT analysis of the “V coin” and the future of the coin in the long run. The paper also focuses on the strength of the bit coin in comparison to the
other virtual currencies that have disappeared over the time

Виртуалните валути като икономическо явление са предмет на изследване и от счетоводната наука. Широкото разпространение и популяризиране на виртуалните валути, използвани като платежно средство от предприятията в глобален мащаб поставя пред счетоводната теория редица актуални въпроси свързани с тяхното първоначално и последващо оценяване, отчитане и представяне във финансовите отчети. В доклада са изследвани същността и белезите на виртуалните валути. Представени са участниците на пазарите на виртуални валути. Оценени са ползите и рисковете от използването на виртуалните валути при сегашните икономически условия. Анализирани са възгледите, опитът и постиженията на водещите държави и организации при разработването на различни модели за счетоводно третиране на виртуалните валути. Застъпена е тезата, че на основата на емпиричния опит изследователите на счетоводната теория и регулаторните органи в средносрочен план следва да разработят счетоводен стандарт за отчитане на виртуалните валути. Предложени са алтернативни подходи за счетоводно отчитане и за представяне на виртуалните валути във финансовите отчети на предприятията. Ключови думи: виртуални валути, активи, счетоводни подходи

Virtual currencies such as the economic phenomenon are the subject of study by accounting science. Wide spread and popularization of virtual currencies used as means of payment by the undertakings are topical issues of accounting. On a global scale should be developed approaches to measurement and evaluation, reporting and recording virtual currencies in the financial statements. The nature and features of virtual currencies are examined in the paper. Participants in the virtual currency markets are represented. The benefits and risks of using virtual currencies under the current economic conditions are assessed. The views, experience and achievements of leading countries and organizations in developing different models for accounting treatment of virtual currencies are presented. It is argued that, on the basis of empirical experience, accountants and regulators in the medium term should develop an accounting standard for reporting of virtual currencies. An alternative approaches to accounting and presentation of virtual currencies in enterprise financial statements are proposed.

MBA Dissertation

During the financial crisis in 2008/2009 a virtual digital currency called Bitcoin was
invented. Bitcoin is often named as an alternative to the common official currencies
and has already a quite public history as it was misused for criminal money
exchanges. Nevertheless, Bitcoin was developed in such a way that would
circumvent the problem of a lack of trust against the common banking system. Bitcoin
– opposite to the existing anchor currencies – renounces a central control instance
such as a central bank. Money transfers can be theoretically performed directly
between two parties or can be executed by a third party platform. Supporter of the
currency Bitcoin (or similar virtual currencies) highlighting mainly two benefits of such
a currency:

1. Appropriate and safe medium for exchange within the internet
2. Independency against existing central banks

This dissertation considers this information and assesses the effects of it and
compares Bitcoin to regular currencies with regards to the possibility for Bitcoin to
appear as a trustworthy and sustainable official recognized currency.

Lately, there have been many questions from specialists regarding the accountability of cryptocurrency. The lack of a legislation has allowed them to be interpreted as either intangible assets or stocks, even though Romania owns the biggest transaction platform in Eastern Europe (Bitcoin Romania). National Bank of Romania (NBR) acknowledges the lack of regulations and supervisions regarding cryptocurrency, regarding them as “speculative assets, extremely volatile and risky”. Simultaneously, this brings to attention the fact that these are not national coins nor currencies, and accepting them as a payment method isn’t, legally speaking, mandatory.

The authors focus on identifying possible forms of expressing the legal nature of virtual (digital) currencies, respectively crypto-assets and want to determine the effects of different ways of expressing the legal nature of virtual (digital) currencies, respectively crypto-assets for their taxation in the Slovak Republic. In addition, the paper deals with the identification of current legislation on the issue of taxation of virtual currencies in the field of direct taxation and indirect taxation in the Slovak Republic and the goal is the synthesis of basic theoretical-legal and legal-application  hortcomings of current legislation, even in the context of the case law of the Court of Justice of the EU.

In previous articles I have presented arguments that despite being called a cryptocurrency, it is questionable whether bitcoin is or is not currency for the following reasons: Almost no governments consider bitcoin to be currency, with most countries regulating bitcoin as an investment asset, rather than a currency. Bitcoin is not exchanged on currency exchanges. Bitcoin cannot be deposited in a bank savings or checking account. Additionally, claims that bitcoin is being used as a medium of exchange are exaggerated. Most retailers who claim to accept bitcoin price their goods in US dollars. The bitcoin is “accepted” but immediately sold, and the transaction is actually carried out in US dollars. Now, the latest myth about bitcoin, and one more piece of evidence that bitcoin is not currency is that the bitcoin ATMS are not actually ATMs. They are kiosks.

Bitcoin is a form of a peer to peer digital currency which is created through computer based mining process and stored electronically. Bitcoin is not regulated by any central or monetary authority and is being in circulation since 2009 onwards. The objective of this paper is to thoroughly evaluate bitcoins, i.e. what is bitcoins, its inception process, legal status among countries and the boom through which bitcoins is going through. This study is based on secondary data analysis and critical evaluation of research done by different competent authorities on bitcoins. Findings will help in understanding bitcoins in a better perspective and will help in creating awareness among the investors relating to bitcoins investments and its future growth outlook.

This paper explores the current challenges posed by virtual currencies within the Group of 20 countries. The paper proposes a framework which seeks to balance individual rights of anonymity against state interest in eradicating money laundering and terrorist financing transaction between users on virtual currency platforms. The regulatory framework will also assess issues of volatility and how this can be resolved through the application of antitrust principles. Crucially, this paper has discussed a proposed method for resolving the environmental challenges presented by virtual currency providers.

Predostreté dielo predstavuje záverečný výstup z riešenia projektu VVGS-2019-1068 s názvom „Blockchain technológia ako činiteľ ovplyvňujúci súčasnú podobu práva“ a bolo vytvorené zároveň ako jeden z čiastkových výstupov z projektu APVV-19-0124 s názvom „Daňové právo a nové javy v ekonomike (digitálne služby, zdieľaná ekonomika, virtuálne meny)“. Čiastočné prekrytie predmetu výskumu jednotlivých projektov umožnilo takýto výskum, a to najmä pokiaľ ide o výskumnú úlohu týkajúci sa digitálnych (virtuálnych) platidiel.

Virtual currencies have recently emerged at the intersection of Internet and finance, bringing unprecedented innovations in payment systems, money and finance. In particular, Bitcoin is examined as the first example of virtual currency, dating back to 2009. Ever since virtual currencies emerged, they received increased attention from public, private and societal regulators, especially in the field of finance. Since regulation of Bitcoin is still in its infancy, this project will rather aim to unpack the underlying rationalities of power. Employing the concept of governmentality, this thesis performs Critical Discourse Analysis on policy papers, statements and press releases from public, private and societal regulators of finance. Rationalities of power and regulation are unpacked along three categories: ideas over the object that has to be regulated; ideas over the objectives that regulation has to achieve; ideas over the technical tools to be employed to achieve said aims. The results envision a future in which regulation will be public, transnational and permissive. The attitude of regulators is aimed at co-opetition, understood as a mix of competition and co-optation of virtual currencies in the current paradigm of regulation of money and finance. The future scenario will be mostly decided by strategic employment of material and institutional power by public and private actors in order either to limit or to support the adoption and diffusion of virtual currencies. However, it seems unlikely that virtual currencies will simply vanish in the future.

This article includes personal commentary on the opportunities and challenges pertaining to Bitcoin and other cryptocurrencies (via email interview) after observing several Senate of Canada hearings on digital currencies in Winter 2015 in Ottawa, Ontario, Canada.

Purpose – To explain and draw conclusions from six recent bitcoin and virtual currency regulatory and law enforcement developments. Design/methodology/approach – Discusses and draws conclusions from six recent, important developments: two administrative rulings from the Financial Crimes Enforcement Network (FinCEN), recent remarks by New York State Department of Financial Services Superintendent Benjamin Lawsky, remarks by Mark Wetjen of the Commodity Futures Trading Commission (CFTC), a recent Securities and Exchange Commission (SEC) informational sweep of crowdsales of crypto-equity, and the US Department of Justice proceedings against Trendon Shavers. Findings – Rather than trying to stifle or control virtual currencies, US governmental entities recognize the long-term value of virtual currencies and are trying to create a regulatory regime to foster growth and development, and an atmosphere where institutional and retail investors are protected. Originality/value – Provides an o...

Streszczenie: W ciągu ostatnich kilku lat w rozważaniach nad współczesną gospodarką coraz większą uwagę zaczęto zwracać na waluty wirtualne, a ich znaczenie rośnie ze względu na coraz szersze ich zastosowanie. Pieniądz wirtualny po części zawdzięcza swoje pochodzenie wirtualnym światom gier i dzięki nim zyskiwał na popularności. Zwrócenie uwagi na swojego rodzaju niezależność i innowacyjność tego rozwiązania przyczyniło się do opracowania ko-lejnych, doskonalszych systemów walut wirtualnych, działających na znacznie większą skalę. Pomimo ich dynamicznego rozwoju w ciągu zaledwie kilkunastu lat, niewiele uwagi poświęcono prawidłowemu określeniu ram definicji nowego rodzaju środka płatniczego. Celem ar-tytułu jest sklasyfikowanie walut wirtualnych w odniesieniu do już funkcjonujących form pieniądza, doprecyzowanie i uzupełnienie występujących w literaturze kategorii, usystematy-zowanie dostępnej wiedzy oraz opracowanie pełniejszej definicji opisującej współczesny pie-niądz wirtualny. 1. Wstęp W dobie coraz intensywniejszej cyfryzacji i " wirtualizacji " współczesnych proce-sów gospodarczych rośnie liczba czynników przyspieszających procesy globaliza-cyjne i zmianę tradycyjnych mechanizmów rynkowych. Ideę wspólnej waluty świa-towej można uznać za najwyższy stopień integracji państw świata w dziedzinie polityki monetarnej. Chociaż idea ta jest nadal bardzo odległa, ma wielu przeciwni-ków i budzi wiele kontrowersji, to obecnie dzięki technologiom internetowym moż-na obserwować ciekawe zjawisko, związane z powstawaniem podaży pieniądza poza kontrolą państwową. Okazuje się, że całkowicie niematerialna waluta, istnieją-ca i działająca wyłącznie dzięki sieci internetowej lub za pośrednictwem wirtualnych światów gier, może być akceptowana jako internetowy środek płatniczy, przyjmując postać nowej formy pieniądza alternatywnego. Chociaż zjawisko to jest stosunkowo nowe, a systemy walut wirtualnych ciągle niedoskonałe, warto przyj-rzeć się temu procesowi, bo być może współczesne waluty wirtualne będą stanowić alternatywę istniejących walut " realnych " , szczególnie takich, które nie pełnią wszystkich funkcji pieniądza (np. funkcji tezauryzacyjnej).

تعتبر العملة الافتراضية والتسويق الشبكي من المواضيع الحديثة، التي شهدت رواجاً كبيراً في بعض الدول العربية ومنها العراق وعلى الاخص عند الذين يودون الحصول على اموال كثيرة بوقت قصير دون التفكر بالآثار السلبية، ومن هنا جاء الهدف الرئيس لهذا البحث في سعيه لتوعية المتعاملين بهذا النوع من العملات والفئة المتعاملين ضمن الشركات التي تنتهج التسويق الشبكي، وتم اختيار عملة Onecoin أنموذجاً، وقد توصل البحث الى جملة من الاستنتاجات اهمها حصر العائد بيد عدد محدود من الافراد والمتربعين في اعلى النظام الشبكي، كما يوصي الباحثان ضرورة قيام الجهات الحكومية بحملات التوعية للمتعاملين بهذا الموضوع الحديث في البيئة العراقية.