Legal implications of digital currency on traditional commercial transactions

Abstract

The dissertation examined the legal implications of digital currency integration into traditional commercial transactions and proposed regulatory adaptations to address the connected challenges. The dissertation adopted a secondary research methodology with a doctrinal legal research approach and analysed data from academic journals, industry documents and regulatory reports. The legal aspect of the study, including legislation and case laws, was analysed using the doctrinal legal research method. Thematic analysis of the secondary sources helped to synthesise the findings to respond to the five key research questions on the evolution of UK laws on money digitisation, regulatory challenges and integration into traditional contractual frameworks, implications for consumer protection and regulatory compliance and lastly, policy recommendations. The findings indicated that even though digital currencies are beneficial as they enhance data privacy, are cost-effective and leverage the gains of smart contracts, major challenges like regulatory uncertainty and legal ambiguities remain. The dissertation recommended policies such as establishing guidelines for adaptive regulation, strengthening AML measures, enforcing fair and transparent practices, promoting standards for data privacy and security and launching consumer education programmes. The implications of the study extend to financial institutions, regulators, policymakers and consumers, with the suggestion that digital currency integration into traditional financial systems calls for clear regulatory adaptation. Future research should assess the success of collaborative efforts among stakeholders and analyse the wider economic impacts of digital currency integration