INSTITUTIONAL ASPECTS OF INNOVATIVE FINANCIAL TECHNOLOGIES REGULATION IN A CRYPTOCURRENCIES DEVELOPMENT CONTEXT

Series "Economics": Economic and legal problems of sustainable development

Abstract

One of the more notable developments in financial infrastructure framework during recent years has been the emergence of networking alternative financing platforms, aimed at bringing together firms and individuals looking for capital and others that have money to lend, invest or donate. That was upticked by establishment of innovative financing platforms and different business models, starting with peer-to-peer lending and equity crowdfunding and evolving to cryptocurrencies and virtual services providers. The emergence of crypto-assets is an important area of interest for regulatory authorities, including those dealing with issuance and secondary trading of crypto-assets. This article focuses on the innovative financial technologies impact phenomena, acknowledging FinTech imputed substantial benefits to the financial sector infrastructure, as well as considerable risks. Along with the analysis of theoretical developments of domestic and foreign scholars, an attention is paid to global discourse involving G20 and G7 countries, Financial Stability Board, Financial Action Task Force on Money Laundering (FATF), The International Organization of Securities Commissions (IOSCO) that raise serious regulatory and systemic concerns, as well as wider policy issues, which both need to be addressed before such projects can be implemented in full scope and integration prospects. Thus, emphasized the necessity to introduce the highest standards of financial regulation, especially with regards to anti-money laundering and counteraction to financing terrorism (AML/CFT), anti-corruption, financial transparency, accountability and inclusion in order to guarantee the stability of the financial system and consumer protection with awareness towards possible regulatory gaps. Addressing a consideration of modern developments of virtual assets regulation framework abovementio ned issues are investigated inter alia with regard to aspects of sustainable development and coordination in measures of institutional economy and Financial Law.

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