E-currency exchange business. Virtual currencies.

E-currency exchange business. Virtual currencies were conceived as an alternative to the legal tender, originally developed in virtual communities, especially in the context of online games. They multiplied, while their possibilities of use expanded and expanded to the real sphere. Many virtual currencies are currently in circulation. They can be purchased directly (through mining, a bilateral transaction with another investor, purchase from a company selling virtual money, purchase options on the Internet …) or indirectly, in particular, through a virtual exchanger or by borrowing them.

“Virtual currency” is traditionally understood as a unit of account stored on electronic media, created not by the state or monetary union, but by a group of people (physical or legal) and designed to account for multilateral trade of goods or services in this group. The virtual money system can be closed (without convertibility with legal tender) or open (with the possibility of converting virtual currency into legal tender). The exchange rate can be fixed or variable.

E-currency exchanger. Virtual currencies of an open system can be bidirectional or unidirectional (in this case, only the conversion of legal currency into virtual currency is possible). Since the virtual currency does not constitute a claim against the issuer and is not issued against a money transfer within the meaning of the Electronic Money Directive 2 (EMR2), the qualification of electronic money cannot be accepted as texts. Virtual currencies are also not payment instruments. However, they can perform an economic function on a regular and private basis. Virtual currencies do not fall into any of the categories of financial instruments, as defined in the article of the Monetary and Financial Code.

The Bank published December 5, 2013 on its Focus website on virtual currencies, warning users of virtual currencies of the risks they bear, and the Prudential Supervisory Authority and Resolution (ACPR) on January 29, 2014 published a position regarding operations with bitcoins , which emphasizes that the mediation of the purchase and sale of virtual currencies against legal tender is the activity of a financial intermediary that makes receipts. funds on behalf of others.

On the other hand, uncertainty remains regarding the legal qualifications of virtual currencies. In addition, this note is not intended to answer the question about the legal status of virtual currencies, which is the subject of study of many analytical centers at European and international levels. Based on a statement made in June 2014, after recalling some of the characteristics, uses and risks associated with virtual currencies, he seeks to formulate recommendations to help establish a framework for prevention and dissuasion. use of virtual currencies for fraud or money laundering purposes.

In particular, the assessment of risks associated with virtual currencies should take into account the terms of issue, terms of use and, in particular, transparency of cash flows, liquidity and convertibility in legal tender. Virtual currencies are different in nature and based on different operating modes, but they have a number of common features, among which we consider it important to highlight the following points, since they are probably sources of risk. Intervention by unregulated entities: A study of a group of virtual currencies shows that various stakeholder profiles are likely to be at their beginning. It can be individuals or groups of activists, commercial companies.

In some cases, a virtual currency may be designed to meet the needs of people pursuing illegal goals. The issue of virtual currencies actually does not meet the requirements of the current banking and financial legislation. In fact, these are not payment instruments in the meaning of the Monetary and Financial Code, nor electronic money, nor financial instruments, the list of which is defined in the Monetary and Financial Code.

Thus, a virtual currency can be issued either by a community of “minors” (a decentralized virtual currency such as a cryptocurrency) or by one organization (a centralized virtual currency). In the absence of a legal status and regulatory framework, virtual currencies do not offer any guarantee of price or liquidity.