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Harmonising cryptocurrency regulation in Europe: opportunities for preventing illicit transactions

Author

Listed:
  • Vladlena Benson

    (Aston University)

  • Bogdan Adamyk

    (Aston University)

  • Anitha Chinnaswamy

    (Aston University)

  • Oksana Adamyk

    (Loughborough University)

Abstract

This study focuses on the analysis of cryptocurrency regulatory developments in Europe. The aim is to review national crypto-legislation in Europe and the EU's latest initiative to create designated regulatory instruments for the crypto-economy. This study assessed whether the European Union's Regulation on Markets in Crypto-Assets (MiCA) would have the intended effect. Drawing on the results of a survey of crypto experts from five European countries, this study evaluated the effectiveness of current regulation across Europe and how it can be improved to reduce financial crimes. The findings show that a unified national legal framework for regulating transactions with crypto assets does not exist in European countries. Current crypto regulations are dictated by anti-money laundering recommendations. This study provides suggestions for improving MiCA regulation. The article offers recommendations for an international regulatory standard for crypto assets and insights for increasing efficiency in regulating DeFi, NFTs, and smart contracts.

Suggested Citation

  • Vladlena Benson & Bogdan Adamyk & Anitha Chinnaswamy & Oksana Adamyk, 2024. "Harmonising cryptocurrency regulation in Europe: opportunities for preventing illicit transactions," European Journal of Law and Economics, Springer, vol. 57(1), pages 37-61, April.
    • Handle: RePEc:kap:ejlwec:v:57:y:2024:i:1:d:10.1007_s10657-024-09797-w
    DOI: 10.1007/s10657-024-09797-w
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    References listed on IDEAS

    as
    1. repec:eme:jfrcpp:jfrc-06-2020-0062 is not listed on IDEAS
    2. Philipp G. Sandner & Agata Ferreira & Thomas Dunser, 2022. "Crypto Regulation and the Case for Europe," Springer Optimization and Its Applications, in: Duc A. Tran & My T. Thai & Bhaskar Krishnamachari (ed.), Handbook on Blockchain, pages 661-693, Springer.
    3. repec:eme:jfrcpp:jfrc-04-2023-0065 is not listed on IDEAS
    4. Daniel Dupuis & Kimberly Gleason, 2020. "Money laundering with cryptocurrency: open doors and the regulatory dialectic," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 28(1), pages 60-74, August.
    5. Zura Kakushadze & Ronald P. Russo Jr, 2018. "Blockchain: Data Malls, Coin Economies and Keyless Payments," Papers 1802.07422, arXiv.org, revised Apr 2018.
    6. Tina Linden & Tina Shirazi, 2023. "Markets in crypto-assets regulation: Does it provide legal certainty and increase adoption of crypto-assets?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-30, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Blockchain; Cryptocurrency; Regulation; Decentralised finance; Non-fungible tokens; Smart contract;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • K20 - Law and Economics - - Regulation and Business Law - - - General

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