Customer value theory and cryptocurrency regulation

Cryptocurrencies are the product of disruptive technologies which have the potential to unsettle the global banking sector and, as a result, state-controlled economies across the world. Since this new asset class is highly volatile, conceptually distinctive, and operates on an entirely decentralised global platform, existing regulatory frameworks are unlikely to offer adequate protection against the myriad of risks that it presents, and a combination of international instruments, domestic legislation, and political commitments may be needed to safeguard traders, communities, and economies across the world. However, little is known about how and why traders perceive and engage with this new technology, and this creates additional complexityfor law and policymakers seeking to identify and plug regulatory gaps. This paper presents the findings of an interdisciplinary, socio-legal study, which uses customer value theory from the marketing discipline as a framework for critically and systematically exploring the perceived value of cryptocurrencies to their users, with the aim of better conceptualising this new asset class, identifying specific risks that regulation should seek to mitigate, providing explanatory insight into the relevant issues, and thereby helping to inform the development of appropriate regulatory responses.