Issue: № 4, 2025
Doi: https://doi.org/10.37634/efp.2025.4.3
The paper is devoted to the legal regulation of cryptocurrencies in the context of modern global trends. It emphasizes the importance of defining the legal status of cryptocurrencies at the level of national legal systems and establishing clear and transparent legislative rules that, in one way or another, pertain to the circulation of crypto assets. In this context, studying and summarizing the relevant Chinese and American experiences is both timely and significant, as the financial, informational, and legal policies of the United States and China have a substantial impact on the entire global cryptocurrency market. The paper outlines contemporary challenges associated with the lack of a unified approach among states to understanding the legal nature of cryptocurrencies. This creates various issues related to law enforcement, fraud prevention, and combating manipulations (including at the level of transnational crime) in this domain. Current legal approaches to regulating this crucial component of modern financial systems are examined, particularly focusing on U.S. federal and state legislation and Chinese laws. The paper analyzes the powers and activities of regulatory authorities and summarizes relevant judicial practices. Additionally, it explores government information policies regarding cryptocurrency usage. The paper highlights key aspects of the current state policies of the United States and China, allowing for predictions about future trends in cryptocurrency market regulation and oversight. It investigates modern processes involving the integration of crypto assets into the U.S. financial system and examines the Chinese government's initiatives in developing its own cryptocurrency. Unlike the classical decentralized model, China’s approach involves comprehensive and strict regulatory oversight. The paper concludes that international cooperation and the harmonization of legal norms are essential to ensuring transparency in the global cryptocurrency market and protecting the rights and interests of its participants. Given the rapid advancement and proliferation of modern technologies, cryptocurrencies are no longer perceived as a temporary or incidental phenomenon but rather as an essential and integral part of the global economy. This, in turn, necessitates coordinated international regulation of relations in this field. Currently, numerous cryptocurrencies exist (Ethereum, Cardano, Bitcoin, Litecoin, Dogecoin), each serving a unique purpose. However, cryptocurrencies are still considered a relatively new financial instrument with both advantages and disadvantages that must be taken into account. There are vastly different approaches to cryptocurrency regulation worldwide, all of which deserve attention. For both lawmakers and legal professionals, detailed regulation and procedural clarity are crucial. The United States and China exert significant influence over the global market, making it relevant to examine the approaches and concepts they employ, the legal and procedural frameworks they establish, and the consequences of their policies in this field.
Keywords : cryptocurrency regulation, blockchain, decentralization, legislation, cryptobusiness
References:
1. Lоhoida V.M. Legal Status of Cryptocurrency in Asian Countries. Scientific Bulletin of Uzhhorod National University. Series: Law. 2021. Vol. 66. pp. 96-102. URL: https://visnyk-juris-uzhnu.com/wp-content/uploads/2021/11/18.pdf (in Ukrainian).
2. Hu J. The Regulation of Cryptocurrency in China. International Journal of Digital Law and Governance. 2024. Vol. 1. P.53-79. URL: https://ouci.dntb.gov.ua/en/works/4gEgpoB9/
3. Grace Zh. China Central Bank Warns Banks on Bitcoin. Wall St. J. (May 7, 2014) URL: https://www.wsj.com/articles/SB10001424052702304655304579547251552490962
4. Helms, K. Chinese Court Rules Bitcoin Is Asset Protected by Law, Bitcoin.com (May 9, 2020). URL: https://news.bitcoin.com/xrp-price-analysis-price-holds-at-2-05-as-momentum-signals-potential-reversal/
5. First Instance Civil Judgment on the Restitution Dispute between Wang Hui and Feng Zhipeng (2021). URL: https://forkast.news/china-crypto-trading-banned-virtual-assets-protected/
6. Hung, Alvin Hoi-Chun Evolution of Intangible Property to Crypto Assets: Legal Pragmatism in Anglo-American Common Law and Chinese Civil Law The Chinese Journal of Comparative Law. 2024. Vol. 12. URL: https://academic.oup.com/cjcl/article/doi/10.1093/cjcl/cxae011/7729236
7. H.R.3684 [Infrastructure Investment and Jobs Act]. URL: https://www.congress.gov/bill/117th-congress/house-bill/3684
8. Chen, C., Liu, L. How effective is China's cryptocurrency trading ban?. Finance Research Letters. 2022. Vol. 46. pp. 1024-1029. URL: https://www.sciencedirect.com/science/article/abs/pii/S1544612321004189
9. Nicholas K. Tesla Now Accepts Bitcoin as Payment for Cars, Musk Says. Bloomberg. URL: https://www.bloomberg.com/news/articles/2021-03-24/you-can-now-buy-a-tesla-with-bitcoin-elon-musk-says
10. Jasperse J. 50-State Review of Cryptocurrency and Blockchain Regulation. The Wharton School of the University of Pennsylvania. URL: https://stevenscenter.wharton.upenn.edu/publications-50-state-review/
11. Dhaliwal A., Madia M.N., Earp-Thomas M. California DFPI Reaches Settlement with Lender Over Crypto-Backed Loans. The National Law Review. URL: https://natlawreview.com/article/california-dfpi-reaches-settlement-lender-over-crypto-backed-loans
12. Goh B., John A. China wants to ban bitcoin mining. Reuters. URL: https://www.reuters.com/article/business/china-wants-to-ban-bitcoin-mining-idUSKCN1RL0C3/
13. Morton D.T. The Future of Cryptocurrency: An Unregulated Instrument in an Increasingly Regulated Global Economy. The Loyola University Chicago International Law Review. 2020. Vol. 16. pp. 129-143. URL: https://lawecommons.luc.edu/lucilr/vol16/iss1/8/
14. Chen Y., Adams M. The Regulation of Digital Currency in China. European Journal of Law Reform. 2023. Vol. 25. pp. 143-160. URL: https://doi.org/10.5553/ejlr/138723702023025001004