Border Problems: Mapping the Third Border |
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| Authors: | Jason Grant Allen Rosa María Lastra |
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| Affiliation: | 1. Senior Fellow at the Weizenbaum Institute for the Networked Society. He also holds affiliations at the Humboldt University of Berlin Centre for British Studies, UNSW Faculty of Law, University of Tasmania Faculty of Law, and the Cambridge Centre for Alternative Finance.;2. Sir John Lubbock Chair in Banking Law at the Centre for Commercial Law Studies, Queen Mary University of London (QMUL). This article was presented at the Sheffield Institute for Corporate and Commercial Law 4th Law and Money Conference, Banking in the Shadows – FinTech, Cryptocurrencies and Emerging Financial Systems (University of Sheffield, 3 September 2018), at the International Workshop on Financial System Architecture and Stability 2018 (Cass Business School, 10–11 September 2018), at the LSE Systemic Risk Centre conference, The Future of Money and the Impact of Fintech and Cryptocurrencies (LSE London, 26 November 2018), and it served as the Background Paper for the 4th CCLS-Bank of England Conference (Bank of England, 4 July 2019). The authors would like to thank the organisers and participants of these events for their valuable feedback. The authors would also like to thank Professor Ross Buckley, Dr Anton Didenko, Professor Campbell McLachlan, Professor Chris Reed, and Dr Jörg Pohle for their comments, as well as the anonymous reviewers. The usual disclaimer applies. J.G. Allen gratefully acknowledges the financial support of the Alexander von Humboldt Foundation. All URLs last accessed 17 September 2019. |
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| Abstract: | The Internet has become the site of economically relevant objects, events and actions, as well as the source of potential risks to the financial systems. This article builds on a metaphor of ‘border problems’ in financial regulation, exploring a ‘third border’ between the ‘real world’ and ‘cyberspace’—a virtual domain of human interaction facilitated and conditioned by digital communications systems. Reviewing the ‘cyber-sovereignty’ debate and surveying the divergent approaches now emerging along geo-political faultlines, we argue that sovereign states still have a unique and irreplaceable role in guarding financial stability which must be reflected in the law of Internet jurisdiction: an emerging lex cryptographica financiera. We conclude with a few observations on how this could affect the design of financial regulation in the coming decade. |
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