Abstract

The trajectory of financial technology is moving towards enabling individuals worldwide to utilize virtual currencies for their transactions. New intermediaries in the cryptocurrency space are cryptocurrency exchanges, which provide online storage for these currencies. The participation of these novel FinTech providers in payment systems is creating fundamental changes in the global economy. However, these new intermediaries are not without flaws. Nevertheless, financial institutions are highly motivated to pursue financial mergers due to the advantages offered by cryptocurrency exchanges, including fast cross-border payments and low-cost settlements. Therefore, this research, using a library-based approach and descriptive-analytical methods, aims to examine the legal aspects of financial mergers and how to manage them to harness their benefits without disrupting the activities of these newcomers. Additionally, it seeks to identify an effective regulatory body to better manage the potential risks associated with these mergers. Furthermore, by considering the mechanisms used by virtual banks that offer cryptocurrencies as part of their digital banking services, a new type of cryptographic experience can be provided to users. Despite national, regional, and global regulatory efforts on virtual assets, a uniform regulatory framework for cryptocurrencies has yet to be established at both national and international levels. While MiCA has markedly reshaped the crypto regulatory landscape, significant gaps remain, leaving key segments of the ecosystem unregulated. This underscores the urgent need for a robust, comprehensive, and harmonized legal approach to crypto assets.