A Preliminary Conceptualization of a Transnational (Economic) Regulatory Cooperation in Cryptocurrency Matters: A Global Legal Pluralist Path

• Author: Abdulaziz M.N. Alshbib Almutairi
• Position: Kuwait University College of Law
• Pages: 209-227

e Indonesian Journal of International & Comparative Law

ISSN: 2338-7602; E-ISSN: 2338-770X

http://www.ijil.org

© 2022 e Institute for Migrant Rights Press

a PrEliminary ConCEPtualization

of a transnational (EConomiC)

rEgulatory CooPEration in

CryPtoCurrEnCy mattErs

a global legal pluRalist path

Abdulaziz M. Alshbib Almutairi

Kuwait University College of Law

Email: almutairi.abdulaziz@ku.edu.kw

In response to the immense pressure of regulating cryptocurrency, this article

presents a preliminary conceptualization of what would be a more realistic re-

sponse in terms of designing an appropriate institutional regulatory design. As

such, it is the rst attempt to conceptualize what would look like a transnational

regime of cryptocurrency in a world where legal pluralism is the norm. More

specically, I present a case for taking the condition of the plurality of laws as

the foundational supposition in designing a transnational regulator y regime. In

a sense, this paper grapples with some conceptual questions in the institutional

design of a transnational regulatory regime. is paper tries to go further than

merely being descriptive. Accordingly, with the plurality of laws as its founda-

tional supposition, this article further identies some practical implications that

it might have. Ultimately, the main contribution of this paper is to the process

of revisiting the foundational aspect of the transnational regulatory regime of

economic aairs in which the plurality of laws is the norm.

Keywords: Law and Economic, Global Governance of Finance, Legal eory, Law Reform

IX Indonesian Journal of International & Comparative Law 209-27 (April 2022)

210

Almutairi

INTRODUCTION: A

CRYPTOCURRENCY COMPULSION TO

GLOBAL LEGAL PLURALISM

Despite its recent dramatic fall,1 there is no doubt that cryptocurrency

will likely be here to stay. For one thing, the dilly-dallying over welcom-

ing cryptocurrency into the formal regulation fold has been commonly

debated in many countries.2 Moreover, cryptocurrency is the ultimate

hope for salvation across hyperination-ridden Latin America. us,

it makes no surprise that Ecuador embraces cryptocurrency as one of

its saving graces. Not only does it not have its currency, but, more im-

portantly, Ecuador sees it as its path to less dependence on (the Amer-

ican) dollars.3 As if the story of Ecuador seems not dramatic enough,

El Salvador has taken things further by making Bitcoin, arguably the

best-known cryptocurrency, its national currency.4 More importantly,

it seems arguable that cryptocurrency’s usability as a payment means

1. See e.g., Scott Chipolina, Cryptocurrency Fallout Delivers Sharp Kick to

Decentralized Finance Dreams, F T, July 22, 2022, https://www.

.com/content/3d1a2409-4030-4a26-be27-dbcb25f6fd75 (last visited Aug

14, 2022) (pointing that there has been “steep declines in recent months have

wiped $2tn, or more than 70 per cent, o the total market value of crypto since

November—delivering a sharp kick to those decentralization dreams”).

2. A summary of the subject of the debate can be found in, e.g., Atef Ghalwesh,

Shimaa Ouf & Amr Sayed, A Proposed System for Securing Cryptocurrency Via

the Integration of Internet of ings with Blockchain, 10 I’ J.  E.  F.

I 166–173 (2020).

3. See Everett Rosenfeld, Ecuador Becomes the First Country to Roll Out Its Own

Digital Cash, CNBC, February 9, 2015, https://www.cnbc.com/2015/02/06/

ecuador-becomes-the-rst-country-to-roll-out-its-own-digital-durrency.html

(last visited Aug 14, 2022). See also Lawrence H. White, Dollarization and Free

Choice in Currency, (2022), https://papers.ssrn.com/sol3/papers.cfm?abstract_

id=2536238 (last visited Aug 14, 2022).

4. El Salvador’s decision was prompted by its president’s conviction that “[bitcoin

will] transform El Salvador’s economy, catapulting the poor Central American

nation into an unlikely harbinger of a nancial revolution.” See Anatoly

Kurmanaev & Bryan Avelar, A Poor Country Made Bitcoin a National Currency.

e Bet Isn’t Paying O., N Y T, July 5, 2022, https://www.nytimes.

com/2022/07/05/world/americas/el-salvador-bitcoin-national-currency.html

(last visited Aug 14, 2022).