Legal Aspects of Using Blockchain Technology to Enhance the Security of Electronic Payments and Prevent Online Fraud
DOI:
https://doi.org/10.26512/lstr.v18i2.59666Keywords:
International cooperation. Decentralised systems. Investment risks. Data protection. Start-ups.Abstract
[Purpose] The aim of this study was to analyse the legal regulation of blockchain technologies and cryptocurrencies, as well as to identify existing gaps in legislation with the goal of developing recommendations for their mitigation.
[Methodology/approach/design] The research employed a systematic review of scholarly literature and legal documents, theoretical legal analysis, and comparative analysis of legislative initiatives in various countries, such as Estonia, Singapore, and the United States. A case study of blockchain deployment in electronic payment systems was undertaken, utilising a systems approach to integrate legal, economic, and social perspectives.
[Findings] The main findings demonstrated that countries like Estonia and Singapore have developed effective legal frameworks that facilitate blockchain adoption and attract international investment. Estonian legislation, which permits the use of smart contracts and electronic payments, significantly streamlines financial transactions, enhancing user trust in such systems. Singapore, in turn, has established clear regulations for cryptocurrency exchanges and initial coin offerings (ICOs), ensuring a secure and predictable environment for investors.
[Practical implications] At the same time, the study identified challenges faced by regulators in different countries. For instance, fragmented legislation in the United States leads to legal uncertainty, complicating the operations of blockchain companies. Different states have their own regulations, imposing additional costs on firms operating across multiple markets. Meanwhile, stringent measures in China aimed at restricting cryptocurrency usage may stifle innovation and lead to talent drain, negatively impacting the market.
[Originality/value] These findings underscore the need for a unified regulatory strategy that considers both local and international aspects. The study concludes that a comprehensive regulatory approach, active collaboration between government bodies and businesses, and further research in this field are key factors in establishing a sustainable blockchain ecosystem that fosters the development of an innovation-driven economy.
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