Establishing a Legal Framework for the Regulation of "Cryptocurrencies"

This work analyses the current legal landscape for cryptocurrencies based on fundamental and theoretical analysis, in addition to adopting a multi-disciplinary approach. As a recent technological phenomenon, cryptocurrencies as a medium of payment present regulators with a problem: whether to acknowledge and facilitate its usage via legislation or place legal restrictions on it. The author takes the position that legislators should take a progressive and permissive stance that promotes further innovation in this field. Legislation will bring stability to this sphere, whilst involving industry stakeholders via self regulating organisations will bring about further consensus about how to create legal standards that brings about further adoption of the technology. Moreover, the author of this work advocates a sui generis approach that classifies cryptocurrency as a pseudo-currency whereby subjects have the right to refuse it as a means of payment. The work also asserts the need for a harmonised approach worldwide due to cryptocurrency being an internet based technology that knows no jurisdictional boundaries.