Model Framework for Consumer Protection and Crypto-Exchanges Regulation

Cross-border insolvency of crypto-exchanges, cyber-risks, transnational character activities with cryptocurrencies, and financial frauds on the Internet are among key threats for individuals who use Bitcoin as an investment. Moreover, crypto-exchanges impose consumer agreements containing provisions limiting their liability hacker attacks other clauses promoting inequality in relations investors. All named obstacles highlight vulnerability unsophisticated investing digital assets have pointed out necessity to adopt internationally recognized model rules otherwise, it will be impossible effectively protect rights investors engaged intermediaries exchanging keeping decentralized cryptocurrencies. The purpose study is elaborate fundamentals constructing international legal framework protecting consumers from risks arising dealing Based methodology comparative study, this paper examines judicial practice various countries legislation jurisdictions popular crypto-exchanges. research explores nature Bitcoin, describes types discusses main approaches regulation. It argues that should based understanding a commodity which situated place crypto-exchange incorporation, licensing self-regulation.