There are still intensive polemics related to cryptocurrency\nphenomenon. In fact, the same gets new a dimension over time, since new\nquestions about their functioning are being raised on daily basis. However, even though this topic is old news for some people, for most, it is still a rather unexplored area, both for\nordinary people as well as for regulatory bodies and public authorities, especially\nwith regard to its legal regulation.<\/p>\n\n\n\n
Being aware of the importance of this topic, in the previous text, we\nhave mentioned that we will further explore it but highlighted some basic\ninformation necessary for understanding of this phenomenon. The one should have\nin mind that cryptocurrency cannot be viewed as a separate issue, but as part\nof a puzzle involving new technologies, primarily blockchain technology and\nassociated Initial Coin Offering (ICO), then smart contracts, along with other related\nissues and terminology, which somehow flooded the internet community.<\/p>\n\n\n\n
There are still different, but inconsistent views, on this issue so in\nthe close future it should be expected that the state and other regulatory\nbodies will begin to take a clear view on numerous issues related to the blockchain\ntechnology and ICO. This is relatively significant due to the fact that it will\nnot only have an impact on the close community, involved in the development of\nthese technologies, but also on financial transactions, data protection,\npopulation and work of various institutions. New opportunities were created due\nto the use of new technologies, which further opened the door to alternative\nways of business operations. Many financial institutions are faced with a dilemma,\nwhich position to take in relation to this new phenomenon. On the one hand,\nthey are supporters of the same, while on the other hand they are harsh\nopponents of everything that has to do with blockchain, Bitcoin and ICO in\ngeneral, and are against their introduction into regular business operations.<\/p>\n\n\n\n
If we pay a close attention to the ICO’s definition which reads – an\nunregulated method of fundraising to secure a new project by offering of a cryptocurrency<\/a> to the\npublic, it is then clear that the problem actually\nexists in the fact the same is not regulated. The ICO has become the latest trend\nin fundraising especially for new projects since there are obvious advantages of\nsmart contracts such as security and the inability to modify their content,\ntransparency, then no chance for money laundering (which is often emphasized as\none of the main advantages or disadvantages, depending on the position), the\ninability to forge cryptocurrency, but it still opens the door to numerous\nquestions. For example, the Croatian National Bank has warned about many risks\narising from such products, noting that cryptocurrency is not electronic money\nin accordance with the definition of the Law on Electronic Money, neither it is\na service under the Payment Transactions Law, so the business entities dealing\nwith the same are not licensed and they are not under the supervision of the\nCroatian National Bank.<\/p>\n\n\n\n Different countries in the world have a different approach to this\nphenomenon. Countries such as Australia, Japan and Canada consider cryptocurrency\nas legal, in fact they already have cryptocurrency\nexchange regulations.<\/p>\n\n\n\n