Cryptocurrency legislation may turn Azerbaijan into world leader, says expert

Cryptocurrency is a relatively new form of electronic money, but it has already won the interest of many people around the world. There are still debates ongoing about the economic essence and legal status of cryptocurrencies. Depending on the country, cryptocurrencies are seen as means of payment, specific products, and they may also have limitations in circulation, for example, prohibition of their transactions for banking institutions.

Today many countries still prohibit any operations with cryptocurrencies, but some experts believe that the governments should be more open towards this type of electronic money and they should create legislation on cryptocurrencies.

"Creation of legislation on the regulation of operations with cryptocurrencies will turn Azerbaijan into one of the world leaders in this sphere," says Maryam Tagiyeva.

Chief system architect of the British Research Center for Citizenship, Entreprise and Governance (CCEG) told Trend that the regulation of operations with cryptocurrencies through exchanges, as proposed in some countries, can inhibit the development of cryptocurrencies.

“Perhaps this will help the process of legalizing cryptocurrencies, but the exchanges and any such organizations work quite slowly, as each innovation must go through many instances. This may inhibit the development of cryptocurrencies and blockchain (public ledger of all cryptocurrency transactions), which should not be done,” Tagiyeva noted.

Azerbaijan will lead the world in case the country can accept such regulation, the expert believes, since such operations are still banned in the world due to lack of regulation.

She believes that first of all Azerbaijan should solve legislative issues on the use of cryptocurrency.

“Only the presence of regulation will boost people’s confidence in cryptocurrencies in general. If there is no regulation, the process of introduction and use of cryptocurrencies will be constantly delayed. Only then you can see how to apply and use cryptocurrencies,” Tagieva noted.

The expert added that the CCEG is ready to support the creation of such legislation in Azerbaijan.

“Our initial goal is to help governments through our research, and the blockchain we develop will also be used in government projects. Unfortunately, we have not yet received any appeals from Azerbaijan, but we are open to suggestions and are ready to help with the creation of the legislation in Azerbaijan,” said Tagiyeva.

Cryptocurrency is a digital currency, the unit of which is a coin. It is protected from forgery, since it constitutes encrypted information that cannot be copied. Cryptocurrency is emitted directly on the network and is not connected in any way with any ordinary currency or with any state currency system.