CEU Electronic Theses and Dissertations, 2021
| Author | Kalmakhelidze, Vaja |
|---|---|
| Title | Should cryptocurrency be regulated as money or asset for effective taxation? The need for a new regulatory framework |
| Summary | Cryptocurrency can be defined either as money or as an asset. Governments worldwide take different regulatory approaches.1 Lack of common approach creates legal uncertainty and confusion2, which in the end, decreases the attractiveness of this market among potential investors. Thus, regulation is much needed to develop and increase the crypto market.3 This paper argues that Cryptocurrency does not fall either entirely under the concept of money or fully under asset but requires a new regulatory framework. To claim this, the thesis is discussing: 1) The concept of money, under which, history; types; functions; different characteristics of money will be addressed; 2) Concept of Cryptocurrency, history, what is and how does blockchain technology apply to Cryptocurrency; 3) Comparative characteristics of Cryptocurrency and money, matching and analyzing traits of fiat (fiat is a Latin word and means “let it be done”4) currency, gold and bitcoin; 4) Present regulations under United States, United Kingdom and German law, how do they identify Cryptocurrency, comparing taxation approaches, analyzing which one is more comfortable for consumer and how; 5) Concluding what types of suggestions states must consider for creating efficient tax legislation for Cryptocurrency that will develop this field and earn more revenue to the state. The normative analysis is based on a comparative examination of tax legislation. The idea behind choosing this concrete field of law is that tax legislation is considered the core decision-making factor for engaging in this field. Well regulated, clear and organized tax norms mainly attract people to invest in Cryptocurrency, and their current concerns are caused by lack of it.5 As of January 2021, there are 8,289 Cryptocurrencies in the market. For the purpose of this thesis discussion, the first Cryptocurrency to ever exist, “Bitcoin” is used as a model of reference. |
| Supervisor | Alvaro Fernandez de la Mora |
| Department | Legal Studies LLM |
| Full text | https://www.etd.ceu.edu/2021/kalmakhelidze_vaja.pdf |
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