Life in the 21st century is progressing faster than ever. Technology is dictating the pace in all areas and the same is true for the financial sector. The newly emerging financial instrument, virtual currencies, have gradually taken over the entire planet since its inception. The concept of modern-day money has enormous potential for further development and use, but there is a huge obstacle in terms of compatibility with today's legislation.
The research challenge is a relatively new area of virtual currencies. Innovative technology has attracted a lot of investors, who are being exposed to foul play and deception due to poor regulation. The field of virtual currencies presents many exploration opportunities, so we have limited our research to two major world countrys, the United States, and China. The purpose of the diploma thesis is to define the current political and economic regulation in the selected countries and to explore and understand the problems of regulation in the field of newly emerged financial instruments, virtual currencies.
We used a descriptive, comparative, analysis, and synthesis method, as well as a case study. In the diploma thesis, we focused on meeting the goals of regulation, what are the reasons for the lack of regulation, and whether the authorities can implement the already established classical regulation. The analysis was developed on the common ground of both countries regarding the implementation, use, and adoption of virtual currencies and defined the current institutional regulation of the field. Based on the results and findings provided with the essential elements and actors, we concluded that the attempts to regulate so far have had some effect, but as long as the area of virtual currencies is not uniquely defined, the regulation will continue to function ineffectively.
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