E-Money in legislation

E-Money in legislation

Recently it has become increasingly popular to introduce and use on-line payments both throughout the world and in Azerbaijan. The growth in popularity of on-line payments is clear. For the buyer, who in fact is an Internet user, it gives an opportunity to purchase goods or services directly, bypassing the need to directly participate in the purchase during shopping, it enable to save human recourses. And the security of payments, guaranteed by the processing center, which is a link between seller and buyer, should inspire confidence for both sides. In fact, the advantages do not end in only on-line shopping. E-commerce has entered into many spheres of relations on the web.

In Azerbaijan, there is no legislation governing the turnover of electronic money. There are different rules and laws in the sphere of money transfers and e-government, but, unfortunately, there is no legislation governing the security of e-money, their storage and flow. In addition, Azerbaijan practically has not developed mechanisms for the use of e-money. Despite that Azerbaijan is the most developed country in the region, information technologies, as well as elements of e-government are being actively implemented, the mechanisms for the use of e-money have not yet been fully formed.

Given that electronic money covers a variety of smart cards and bank cards, as well as payment on the Internet, the regulation of electronic money should be sufficiently necessary. Creating a legal framework will encourage the development of the scope of electronic money, which is part of the creation of e-government. In addition, stimulation of the scope of electronic money will lead to overall development of the banking sector.

Today Azerbaijan is developing the legal framework to regulate operations with electronic money. The Central Bank is developing a legal framework to regulate operations with electronic money, and it is expected that this preparation will be ended by the end of the year.

According to EU legislation, e-money can be anonymous if the amount in the account does not exceed 150 euros, otherwise they must be personalized. This amount is expected to be about 150 manat in Azerbaijan. E-money is most frequently used in making mass payments for a small fee, for example, for payments to the transportation, utilities, various fines, accounts on the Internet. The process of making payments by e-money is carried out quickly, there are no queues, no need to give change.

In addition, On-line shopping provides flexibility and enables purchasers of goods and services and the sellers to save time. The latter also appears an opportunity to work round-the-clock, accept payments at any time of day.

On-line booking and reservation of tickets, hotel accommodations, cinemas and other public places are a commonly spread case. Being at work, you can plan not only the next vacation abroad, but also by credit card can pay for the cost of an airline ticket on the appointed day, to book a hotel or even to buy a specific tour that will take place six months later.

In other CIS countries, the legalization of e-money is going on slowly. Thus, recently the National Bank of Ukraine (NBU) has drafted legislative changes concerning payment systems and development of non-cash payments in Ukraine. The relevant text of the document has been published on the official website of the regulator for public discussion. The National Bank says the bill is aimed at "increasing the financial independence and security of the country, mass introducing cashless payments and developing a national payment infrastructure, reducing foreign exchange costs of citizens and banks by switching to charging commission payments in local currency".

With this bill, the National Bank of Ukraine hopes to encourage citizens to shift to accounting via payment cards and use less cash. The bill is to harmonize the conditions of all payment systems. In particular, the bill defines the term "electronic means of payment", which ranked as bank cards, mobile payment instrument and e-money.

In June, the Russian State Duma adopted immediately in the second and third readings a bill on the national payment system, developed in 2009, the concept of "electronic money" was introduced to the legislation.

E-commerce has become a solid part of the global economy and the circulation of money in the web reached the level of global companies, corporations and banks. It is pleasant that such tendencies affect directly Azerbaijan, every year just gathering momentum.

The amount of purchases on the Internet by Azerbaijanis totals tens of millions of dollars. This suggests that the audience is serious enough and it should work. Now it is up to employers: they have to offer relevant products, and it should not be just a website, a full-fledged sales channel.

The law is needed to establish a legal basis for the production and use of so-called e-money in Azerbaijan and regulate legal relations that are emerging in their production and use for payments and other financial transactions.

With the adoption of the bill, all transactions between Internet users and sellers should be carried out legally only with the use of e-money issued by domestic issuers and expressed in national currency.

Legalization of e-money only benefits the country. In addition to conveniences for the population in terms of making electronic payments, the widespread use of electronic money by citizens also helps reduce corruption in the country.

The legislation, which takes into account international experience and business practices, can be a powerful impetus to the development of high-tech payment instruments.

Azerbaijan's digital infrastructure project to generate Digital Silk Road between Europe, C.Asia
Azerbaijan's digital infrastructure project to generate Digital Silk Road between Europe, C.Asia
IAM Construction LLC to reconstruct facility in Azerbaijan’s Seaside Park
IAM Construction LLC to reconstruct facility in Azerbaijan’s Seaside Park
Iran to construct new seaport making it largest in country
Iran to construct new seaport making it largest in country
Loading Bars
Iran's power consumption reduced by Omid plan
Iran to inaugurate more projects in free economic zones
Iran has developed steel supply chain - Iranian President
Iran's Securities and Exchanges Organization talks number of investors in capital market
Iran’s Bahar Azadi gold coin price rising
Volume of dry-farming land in Iran increases
Iran's NISOC begins excavations on its territory
Iran’s South Pars Gas Company reveals production data of its refinery
Iran waits for Europeans to comply with the JCPOA - MFA
Iran to make decision whether to open schools after Nowruz holiday
Production of LPG-fueled cars in Iran's interests - Chamber of Commerce
Armenia's war crimes exposed at UN Congress
Azerbaijan sees growth in Jan.2021 transactions via clearing system for small payments
Iran boosts car manufacturing
Spanish La Vanguardia: Return to Azerbaijan's Karabakh after war
Azerbaijan’s export of ferrous metal products down
Turkmenbashi Oil Refineries opens tender for purchase of gasoline
Britain's M&S expands online business to over 100 markets
Dustbin of history - place for former Armenian president Kocharian, 'Karabakh clan' - historian
Khazar Consortium opens tender to purchase cementing unit
Turkey’s food retail chain Migros to bolster gender-equal workforce and greener stores
Iran Mercantile Exchange working to expand sale of goods
Iran reveals COVID-19 data for March 8
Modi to inaugurate Maitri Setu between India and Bangladesh on Tuesday
India's Covid Vaccine Rollout "Rescued The World": Top US Scientist
India pre-eminent partner of US in Indo-Pacific region: Blinken tells Jaishankar
Bachendri Pal to lead all women team aged above 50 in a 5 month long Himalayan expedition
Satellite set for Mar 28 launch will provide near real time images of borders, quick monitoring of natural disasters
Sikh Fighter Pilot Memorial In UK To Honour Indians Who Fought In World Wars
IMF, Georgia review agenda of bilateral cooperation
Iranian President and Irish FM discuss JCPOA
Iran reserves strategic basic goods
Iran’s Rouhani asks for release of frozen assets in Iraqi banks
Iranian parliament approves increase of salaries to aid low incomes
Iran not to allocate Nowruz gasoline quota due to COVID-19
Uzbekneftegaz establishing production of import-substituting products for industrial enterprises
Iran to obtain its funds frozen in Iraq
Georgia opens new enterprise with support of Rural Development Agency
Interest in entrepreneurship growing among women in Azerbaijan
Export of cotton from Azerbaijan greatly increases in Jan. 2021
Mubarek oil&gas production dep’t owned by Uzbekneftegaz to increase natural gas production
Uzbekistan reveals its COVID-19 data for March 8
Iran unveils number of mining facilities put into operation
Japanese businessmen visit Azerbaijan’s Guba genocide memorial complex (PHOTO)
Development of Iran's Siyahmakan oil field launched
Nearly half of non-oil sector taxes in Azerbaijan falls on mobile operator in 2020
Azerbaijan's Azercell reveals number of processed requests in 2020
Azerbaijan's Jan. 2021 imports from EU show increase
Accumulative life insurance market in Azerbaijan grows
Iran capable of building long water transfer pipelines - Iranian VP
Deliveroo launches London IPO after business surges in 2020
Iran to publish final report of the downed Ukrainian jet soon
No direct or indirect relations between Iran and US - Iranian Foreign Ministry
Approval of FATF related bills would increase Iran's export revenue - Iranian Union
Iranian medicine importers awaiting approval of FATF related conventions
Turkey records slight decrease in car exports abroad
Cement exports from Turkey to global markets grow
Azerbaijan shows footage from Zangilan's Garagoz village (VIDEO)
Turkey's revenues from export of grains, legumes to global markets up
Moscow hosts opening ceremony of another 'Gifts of Azerbaijan' stand
Turkmenistan sells diesel fuel, gasoline to number of countries
Baku celebrating International Women's Day (PHOTO)
Kazakhstan's exports to Portugal plummet amid COVID-19
Kazakhstan boosts trade turnover with Lithuania
Oil supply to exceed demand in 2022, says JP Morgan
Georgia sees decrease in COVID-19 cases
Uzbekistan's gold deposit ranks in list of world's biggest gold mines by production
Azerbaijan's digital infrastructure project to generate Digital Silk Road between Europe, C.Asia
U.S. says all options on table for a decision on Afghanistan
Growth rate of agricultural production in Turkmenistan increases
Uzbekneftegaz reveals volume of oil products manufactured in 2M2021
Azerbaijan's First VP congratulates Azerbaijani women on International Women's Day
JP Morgan reveals 2021 oil demand & supply forecasts
Boom in Iran's housing sector create new jobs for local force
JP Morgan says OPEC to boost supply in 2021
OPEC crude output to exceed 30 mbpd in 2022 – JP Morgan
Uzbekistan, India talk mutual phytosanitary permits for agricultural products
Turkmenistan exceeds plan for transport, communication sector
Weekly review of Azerbaijani oil market
Nepal PM Oli receives first jab of Indian-made COVID-19 vaccine
Iran's economic development declines
IAM Construction LLC to reconstruct facility in Azerbaijan’s Seaside Park
Azerbaijan’s state interests on Azerbaijani-Armenian border protected at highest level
China's focus on annual GDP targets gives greater policy flexibility
Iran's CBI reveals amount of loans issued in Iran's trade sector
Buy/sell operations at Iran Mercantile Exchange on the rise
Iran kicks off development of Ramin oil field in Khuzestan Province
Iran reveals amount of loans issued in housing and construction sector
Iranian currency rates for March 8
Iranian banks issue big loans to agricultural sector
Iran boosts development of Zilayi oil field
Iran boosts exports via Zanjan Province
Iran's exports to Azerbaijan not on high enough level - Ali Jahangiri
State Oil Fund of Azerbaijan enters top five most transparent sovereign wealth funds
Large-amount loans issued in Iran's services sector
Excavations at Iran's South Pars gas field continue
Significant work done on water and electricity sectors in Iran – minister
Azerbaijan’s Buta Airways low-cost airline to resume flights from Baku to Ukraine’s Kyiv
Iran implements plan to maintain, increase extraction from several oil fields
Turkmenistan sees increase in trade turnover volumes
All news