E-money regulation for consumer protection

The purpose of this paper is to analyze the regulatory framework of e-money transactions in terms of consumer protection approach, the base for regulatory and supervisory system.

This research is based on descriptive-qualitative studies in electronic and cyber commerce. The authors have first explained the importance of regulation for consumer protection and have then showed the position of regulation in e-money; thus, the authors have noted two important and predominant concepts of consumer protection: safe arrangement in e-money and problem of information secrecy and asymmetry. The leading approach in this paper is for efficient allocation of resources between dealers and player of this scope and the authors find consumer protection as the best regulation instrument in this way.

The paper argues that e-money is an efficient and user-friendly payment system and might be used as a general means of payment in the real and virtual worlds. This finding provides a major reason for regulatory frameworks in e-money.

Some important regulation applications in this new scope of commerce involve indirect interference and making orders in transactions. In this paper, the authors have focused on consumer protection regulation that may have a positive effect on dealers, businessmen and women in the long run; thus, this approach also compares other studies within the scope of e-money.