"Virtual currency exchanges and their potential for financial managamen" by Norman Kenneth V. Santos

Virtual currency exchanges and their potential for financial managament

Date of Publication

4-2018

Document Type

Master's Thesis

Degree Name

Juris Doctor

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Thesis Adviser

Mary Margaret O. Que
Johana T. Sunga-Tagal

Defense Panel Chair

Rachel a. Quero

Defense Panel Member

Samantha L. Poblacion
Carlo Bonifacio Alentajan

Abstract/Summary

Virtual Currencies, such as Bitcoins, are new inventions that has the potential to change how we understand and use money and finance today. The advent of digital payments and cross-border movement of money made it necessary to develop money that can freely move without the burdens of having multiple middlemen in the transaction with exorbitant fees. This can be well seen in OFW remittances from abroad to their beneficiaries in the Philippines. VCs have that power to possibly change all that.

The problem now lies with the technology being brand-new and can be said to be a class of its own or sui generis in legal terms. There is a scarcity in laws that may be said to be applicable, to users and businesses engaging in or making use of virtual currencies, let alone classify virtual currencies in general. Hence there are no safeguards to these persons and users of virtual currencies.

This study aims to determine whether virtual currencies can be used in a practical manner in terms of its potential use case in the fields of e-payments and global and local remittance. Legally, the study aims to determine what current laws are applicable, which governmental body should regulate it as a whole, and what are the obligations of a VC Exchange. Additionally, the study aims to recommend a law that would safeguard every stakeholder in the use of virtual currencies and VC exchanges.

Analysis of the data acquired has revealed that it is possible to make use VC and VC Exchanges as a medium for e-payments and money remittance, however that is with assumptions. If those assumptions are in place, then it is quite possible and even more practical to make use of it than the conventional way we use the current systems of e-payments and money remittance.

On the legal side, it has been found that there is no adequate laws and regulations that has been implemented in the Philippine setting. There is only one law which has been enacted by the BSP through BSP Circular 944 series 2017 that can be said to be a direct regulation on VC Exchanges. As a recommendation, the researcher has drafted a law which has been patterned after the BitLicense of NYDFS in the US. The reason being is that the BitLicense is currently the most comprehensive and up-to-date law that is currently being implemented to regulate VC Exchanges and other entities dealing with virtual currencies in the US.

Abstract Format

html

Language

English

Format

Electronic

Accession Number

CDTG007478

Shelf Location

Archives, The Learning Common's, 12F Henry Sy Sr. Hall

Physical Description

1 computer optical disc; 4 3/4 in.

Keywords

Digital currency—Law and legislation; Foreign exchange

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Embargo Period

11-21-2024

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