NAVIGATING THE TRANSFORMATIVE POTENTIAL AND LEGAL CHALLENGES OF CRYPTOCURRENCIES AND BLOCKCHAIN TECHNOLOGY
Jammylly Fonseca Silva, Fabiana de Sá Ferreira · Revista fisio&terapia. · 2020
The rise of cryptocurrencies like Bitcoin and Ethereum, along with the underlying blockchain technology, is fundamentally transforming the global financial system. This technological advancement offers significant opportunities for innovation but also presents complex legal challenges. The primary issue is the absence of a uniform global regulatory framework, leading to diverse and sometimes conflicting regulatory approaches among different countries. This regulatory inconsistency creates uncertainty for investors and users. Key concerns include the anonymity provided by cryptocurrencies, which raises issues related to money laundering and terrorist financing, as well as consumer protection and the enforceability of smart contracts. Regulatory authorities have begun implementing measures such as "Know Your Customer" (KYC) policies and transaction monitoring to address these issues, yet the effectiveness of these measures is debated, particularly in jurisdictions with lenient regulations. Blockchain’s decentralized nature poses additional challenges for consumer protection, as there is no central authority to reverse fraudulent transactions. Emerging regulations are focusing on ensuring that cryptocurrency platforms adhere to strict cybersecurity standards. Moreover, blockchain technology introduces new questions regarding property rights and the legal status of smart contracts. The technology’s ability to provide a tamper-resistant record system offers potential benefits for various sectors, including finance, healthcare, and entertainment. However, achieving these benefits requires a strategic, market-wide approach and international cooperation to address jurisdictional and regulatory challenges. The studies by Guadamuz and Marsden (2015), Savelyev (2017), Dierksmeier and Seele (2018), Conti et al. (2017), and Morini (2016) highlight these issues and opportunities, offering insights into the legitimacy, regulation, security, privacy, and business applications of cryptocurrencies and blockchain technology. Collaborative efforts are essential to develop a cohesive regulatory framework that balances innovation with protection and integrity.