Virtual currency services providers – certain issues of legal status

Abstract

Regarding the fact that digital assets services providers are new in domestic legal system, the aim of this paper is to point out certain aspects of its status, in the part related to virtual currency. Firstly, authors deal with legal sources of domestic law and, with the aim to provide broader context, EU law. There-after the notion of virtual currency services provider is explained along with the way of obtaining that status. In the central part of the paper, the analysis of the services in which those subjects are entitled to engage is given as well as specific conditions that need to be fulfilled for authorized provision of services. Finally, the ways of termination of status are presented. Authors conclude that a cautious approach has been used in regulating those subjects due to the nature of its services and the risks, aiming to minimize possibilities for abuse.