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1.
Legal Protection for Bitcoin users in E-Commerce

Globalization of the technology is developing apace in society, nation and state. The presence of technology has brought about a major change in economy, especially in transactions, so conventional transactions have begun to be abandoned and switched to electronic transactions or e-commerce. E-commerce (electronic commerce) could be a type or model of up to date trade that deserves to be observed because the pioneer of trade development within the twenty first century (DuPont, 2019). The problem of economic process, the century of high-technology info and developments that modification lives, particularly in economic science that has an uncontrollable impact as a result of it offers potency, effectiveness and convenience and alternative advantages that can’t be obtained in typical trade-based on conventional-traditional practices and devices. This tool is employed in transactions or electronic commerce/e-commerce through Electronic data Interchange (EDI), telex, fax, Electronic Fund Transfer (EFT), and net. One of the electronic transactions or trade that has taken world’s attention is trading through internet, new payment strategies that aren’t any longer paperless. ranging from e-banking, net banking, PayPal, to virtual currencies like Bitcoin. Bitcoin is referred as cryptocurrency, which is a form of payment instrument that uses cryptography or a special security rule to regulate the management and manufacture of Bitcoin. Bitcoin is employed in many countries corresponding to the U. S., Germany, Japan, New island, Finland, South Korea, China, Hong Kong, Denmark, Russia, Taiwan, and also in Asia such as Singapore, Bangladesh, Thailand and together with land. This is often even additional attention-grabbing as a result of it offers a replacement conception of payment while not wishing on the trust of every bank or decentralization (Matsuura, 2016).

As the utilization of Bitcoin as payment keeps increasing, users’ concern on making every transaction is increasing as well because there is no regulation about Bitcoin. Therefore, for people who use bitcoin, the protection for them is still weak as there is no lawfulness. Furthermore, these transaction activities solely involve applied scientist, Bitcoin users with computer network without any interference from the govt. or the financial organization, it’s been conjointly reaffirmed by the prohibition to use Bitcoin, together with land. The aim of inscribing this paper is meant to supply an understanding and outline of whether the rules free about Bitcoin can fully function the private law, public law and state administration law as protection for Bitcoin users. However the state overcomes the issues that arise as a results of the dealing of bitcoins as payment, it relates to the duty to voters, because it can pose a threat to country’s economy.
Based on a list of literature information, each from literature within the style of books and journals, and conjointly many laws involving transactions, it was found that the payment system is a form of the Central Bank’s duty to maintain economic stability. Singapore, many countries in Europe, China and land as samples for analysis (Morgan, 2018). These countries verify their various policies, together with not formally regulation transactions exploitation virtual currencies. The financial organization of land regulates the payment system together with payment instruments, banking procedures and conjointly the repose bank fund transfer system utilized in the payment method. The central bank features a power to think about bitcoin as a legal payment instrument in online transactions. Within the regulation, central bank doesn’t regulate transactions exploitation virtual cash, however the conclusion of the follow of exploitation virtual cash within the style of bitcoin that has largely been exhausted economic life, leading to a legal vacuum (rechts vacuum). non-public law, public law, and state administrative law must be functioned according to their wants. The use of Bitcoin in transactions that are decentralized, solely involves peer-to-peer, it implies that there’s a legal relationship between parties concerned.
In truth, supported inventory and observation through literature in many countries, the Bitcoin as a tool of payment has not been specifically regulated. On the opposite hand, Bitcoin settings are a haul and are perpetually debated by the digital currency trade (Narayanan, 2016). This restrictive drawback is very important as a result of bitcoin dealing activities involve technology. Technologically, Bitcoin has distinctive options, thus it’s the potential to cause impacts and disruption to various industries and establishments. As stated in the literature review, Bitcoin transactions involve 3 items; miners, wallets and blockchain, all of those are digital devices. partitioning this drawback may be through the domain of personal law as a result of it involves the parties; law also can be concerned during this problem if it’s involving economic stability; State administration law is additionally vital to think about the framework of management, though the utilization of Bitcoin doesn’t involve establishments fashioned by the state.
The role of the state in providing legal protection
The use of Bitcoin as a payment instrument based on regulations has not been specifically regulated due to varied state policy concerns, corresponding to European financial organization, The Bank insists that as long because the use of Bitcoin doesn’t cause economic stability, considering the regulation that haven’t met requirement should be prioritized, even supposing it’s digital trade, the foundations of 1 component should be omitted quickly. Land has totally different concerns, that bitcoin as a virtual currency isn’t a tool of finance, even the central bank of land prohibits the utilization of bitcoin. However, in reality, it seems to permit Bitcoin users to create transactions (DuPont, 2019). Considering the case and conditions of the utilization of bitcoin and also the accessibility of laws to rule bitcoin has not been accomplished, financial organization is that the closest party. The Central Bank has duties and obligations, even supervision to maintain economic stability in their various countries.
Conclusion
To occupy legal vacuum for electronic transactions exploitation Bitcoin payment instruments, non-public legal and legal code tools may be used as an alternate to resolve issues. The role of the state, particularly the financial organization, could be a special establishment that has responsibility united of the obligations of the state in providing legal protection to its voters.
References
DuPont, Q. (2019). Cryptocurrencies and blockchains. John Wiley & Sons.
Matsuura, J. H. (2016). Digital Currency: An International Legal and Regulatory Compliance Guide. Bentham Science Publishers.
Morgan, S., & Gomes, E. (2018). The Newbie Guide to Bitcoin (Premium Version): The Answer to Every Crypto Question. Infinity Seed Books.
Narayanan, A., Bonneau, J., Felten, E., Miller, A., & Goldfeder, S. (2016). Bitcoin and cryptocurrency technologies: a comprehensive introduction. Princeton University Press.

2.
Legal Protection of Bitcoin

An E-commerce on the internet is rising quickly, ranging from PayPal, e-banking to virtual currency, for example, bitcoin. Bitcoin-based transactions ate deliberated very beneficial, thus, it can be measured like a transaction strategy. Though, in some states, bitcoins have not attained legality, as well as it triggers bitcoin users to get some legal protection or security during transaction. The legal base used in the usage of Bitcoin like an e-commerce transaction is measured single commandment as it includes relationships among public and individual’s law as it includes the role of a nation or state. Legal defense is a personal right that has to be possessed through legal themes. E-commerce events that use Bitcoin as a payment method have convoluted parties, comprising the bitcoin user (Ruslina, Hernawan, & Rastuti, 2018).
The usage of bitcoins like a payment tool reliant on some regulations and rules has not been mainly regulated because of many state policy considerations, for example, European Central Bank or ECB. The bank claims that on condition that the usage of the bitcoin doesn’t cause the economic balance, considering the rule that has not met requirements have to be prioritized, although it is a digital business, the instructions of one component have to be omitted rapidly. Indonesia has different thoughts, that bitcoin like a virtual exchange, isn’t a tool of financing, even a Central Bank prohibits the usage of bitcoin. However, it appears to permit Bitcoin workers to make business transactions (Ruslina, Hernawan, & Rastuti, 2018).
The circumstance that E-commerce is quickly rising calls for the legal defense as well as control of how businesses transaction happens. The usage of bitcoin in some states has not expanded authority, calling for the legal defense in a transaction. The growing globalization during emerging fast in culture bringing in many challenges, especially in the business transactions. The worries on such transactions are growing due to the restricted regulations related to the bitcoin approach. To inhabit the legal void for electronic business transactions by Bitcoin reimbursement instruments, secluded legal as well as criminal commandment tools can be effectively used as a substitute to resolve issues and problems. The part of the state, specifically the Central Bank, is a distinct organization that has charge like one of the duties of the state while offering a legal defense to its citizen.
References
Ruslina, E., Hernawan, D., & Rastuti, T. (2018). Legal Protection for Bitcoin Users in E-commerce Transactions. Retrieved from ac: http://proceedings.conference.unpas.ac.id/index.php/ifsac/article/view/179/158″ http://proceedings.conference.unpas.ac.id/index.php/ifsac/article/view/179/158

3.
Legal Protection for Bitcoin users in E-Commerce

Cryptocurrency in E-commerce
E-commerce has developed due to the process of globalization and the Internet. Electronic money and cryptocurrency exist due to the development of information technology and the growth of E-business (Redžović & Novaković, 2016). E-commerce and cryptocurrency complement each other as they share the same platform, and both of them appeal to digital users. In this new growth of technology and as well new marketplace, both consumers and merchants recognize the benefits and advantages the bitcoin or other cryptocurrencies offers. There is a benefiting relationship between Bitcoin and E-commerce. Both consumers and E-commerce merchants are using digital currencies as a payment method to make transparent transactions while contributing to their growth and influence. In the digital world, cryptocurrencies seem to have high-demand for digitally-based payments as it offers fast, low fees, more security, and more convenient way to pay for goods and services (Darshit, 2018).
Benefiting Relationship of Bitcoin and E-commerce
Cryptocurrency has legal status because they are considered money, property, financial instrument, commodity, security, and payment of wages; and they are subject to income tax, salary tax, and self-employment tax (Cvetkova, 2018). Bitcoin acts as both digital currency and payment network, and it can facilitate cross border payments as well. Merchants are adding bitcoin as a payment option because there is no central entity or intermediaries, and they can have transparent and secure transactions between them and their consumers. From the user experience perspective, it is always beneficial to offer multiple payment options in stores for consumers (Almasri, 2018). Though many E-commerce companies, other industries, and individuals use bitcoin as a payment method, bitcoin is not legal and regulated in all countries by governments or central banks. To be safe and protected while using bitcoin as a payment tool, there should be a legal instrument by central banks or government or public laws or private laws. Each country has its reasons for legally regulating or not regulating bitcoin as a payment method.
Legal Protection and Regulations of Cryptocurrencies in Different Countries
In the United States of America, states have the responsibility for the prejudicial supervision of cryptocurrencies. Under the law on the unification of monetary services, the states Idaho, Louisiana, New York, and Washington adopted and considered the transfers of virtual currency and mining are the objects of money transmission but, in turn, to implement cryptocurrency services, citizens must require a license. At the federal level, under the IRS No. 2014-21 of 25 March 2014, cryptocurrencies are a digital reflection of the value that acts as a means of exchange, valuable stock, property, and a unit of settlement. For taxation, cryptocurrencies classify as property, and individuals who receive Bitcoin or other cryptocurrencies as salary or income are subject to federal income tax holding and payroll taxes. (Cvetkova, 2018)
In India, the authorities in 2013 stated that they did not want to regulate Bitcoin’s turnover. And in the years 2016 and 2017, the authorities indiscriminately took the gold away from their citizens, and at the same time, they made other innovations available like blockchain solutions for banks. According to the Reserve Bank of India, cryptocurrencies are not considered legal currencies, and citizens cannot use them for payments as traditional currency. In 2013 and 2017, the RBI also issued warnings regarding cryptocurrencies and how risky it is to invest in bitcoin or other cryptocurrencies. (Cvetkova, 2018)
In Europe, the European Union has faced the necessity to create the appropriate legal regulation to resolve the legal aspects of cryptocurrencies, but they did not seem to be in a hurry to adopt cryptocurrency. According to the European Union, there is no legal definition and regulation for cryptocurrencies, but some countries in Europe have defined the status of cryptocurrency for only taxation purposes (Ruslina, 2019). According to the European Central Bank report, cryptocurrency schemes are based on observant characteristics such as cryptocurrency is relevant in several areas of the financial system and are therefore of interest to central banks; ECB’s interest in the role of cryptocurrency as a catalyst for payment systems and its oversight role. Based on the observant characteristics, the definition of cryptocurrency might change in the future for the EU, but in their report, they said cryptocurrencies are defines as a type of unregulated digital currency issued by its developers and used and accepted by the members of specific virtual community. (Cvetkova, 2018)
In China, the Chinese legislation does not have any rules for taxation of cryptocurrency and its transactions. At the same time, in 2013, the national bank announced that cryptocurrency defines as a virtual commodity but not a currency. And they proclaimed it might be taxed with the value-added tax and income, and profit in cryptocurrency is subject to a corporate tax, individual tax, and capital gains tax. (Cvetkova, 2018)
Japan is the world leader in innovation and cryptocurrency. Japan Authority of Digital Assets is a self-regulatory authority. A law was put in place in 2016 that regulates the activities of exchanges and are subject to registration with the Financial Services Agency. This agency can conduct inspections on such businesses and apply relative administrative measures. According to this law, in japan, cryptocurrency is an asset value, and its transactions are subject to taxation according to the standard rules. If an individual receives an income in the form of cryptocurrency, it is subject to income tax. In the same way, if a legal entity gains profit in the form of cryptocurrency, then it is subject to corporate income tax. (Cvetkova, 2018)
Based on the research, many countries did not regulate cryptocurrencies as they do not consider cryptocurrencies as legal currency, and few countries do not see it as a severe threat as its value is very less in the economy. But cryptocurrency users must have legal protection with alternative laws as solutions and be regulated under public law, private law, or state law because there is no way to prevent the use of cryptocurrencies. Currently, cryptocurrencies show no signs of abating.
Conclusion
Cryptocurrency is a new product of technology development, and it became liquidity, easy to implement medium of exchange along with fiat currency. Bitcoin or other cryptocurrencies creates a possibility for small business to engage in the global E-commerce business. It is the right way for businesses to have transactions carried out in a transparent, secure, and safer method. But at the same time, countries must ensure that cryptocurrencies have policies or regulated or have specific laws or licenses for bitcoin users because users are treating cryptocurrencies as legal currencies and using them as property, commodity, money, payments methods, income, and profits. Countries might have to consider cryptocurrencies by giving legal status alongside with fiat currency.
References
Almasri, A. M. (2018). The effect of Bitcoin on E-Commerce. Middle East Journal for Scientific Publishing, 1(1). https://www.researchgate.net/publication/337827978_The_effect_of_Bitcoin_on_E-Commerce
Cvetkova, I. (2018). Cryptocurrencies legal regulation. BRICS Law Journal, 5(2), 128-153. https://doi.org/10.21684/2412-2343-2018-5-2-128-153
Darshit. (2018, February 8). How is e-Commerce business revolutionized by bitcoin currency? Medium. https://medium.com/@darshit_parmar/how-is-e-commerce-business-revolutionized-by-bitcoin-currency-d81ff3e761f0

Ruslina, E. (2019). Legal Protection for Bitcoin Users in E-Commerce Transactions. Journal of Internet Law, 23(4), 3–6.

Redžović, M., & Novaković, J. (2016). The impact of virtual money on e-Commerce. Proceedings of the International Scientific Conference – Sinteza 2016. https://doi.org/10.15308/sinteza-2016-474-478