Dr. Mohammad Alhihi
Associate Professor of Commercial Law
KILAW

Abstract:

This paper explores through critical appraisal the technical and legal characteristics of cryptocurrencies as innovative development in financial market. The paper aims highlights the technical way of producing these currencies, clarifies their legal status, explains the differences between normal e-payment tools and cryptocurrencies transactions, and clarifies the main factors which determine the values of these currencies. Furthermore, the paper discusses the main legal risks associated with cryptocurrencies. The main outcome of this paper is the conclusion that cryptocurrencies have become a real legal challenge for states collectively and individually to develop appropriate legal frameworks to deal with different forms of economic and risk associated with virtual currency.

Keywords: cryptocurrency, bitcoin, virtual currency, blockchain, digital money.

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