Protection of the rights of owners of virtual assets: proposals for improving the legislation of ukraine

Abstract

This study aims to develop substantiated proposals for improving the legal regulation of the protection of civil rights of virtual asset market participants in Ukraine. It focuses on analyzing the legal status of these assets, assessing the effectiveness of existing regulatory acts, and identifying ways to enhance the security of the legal environment for users and investors. The relevance of the work stems from the rapid development of digital technologies, the growing circulation of virtual assets, and the need to adapt national legislation to contemporary challenges of the digital economy. The research employs a comprehensive approach, encompassing a comparative legal analysis of virtual asset regulation in Ukraine and abroad (EU, USA, Switzerland), a systematic analysis of current regulatory acts, including the Law of Ukraine "On Virtual Assets" and the Civil Code of Ukraine, and a synthesis of scientific publications from the past five years. The study is grounded in a critical evaluation of international experience and national peculiarities of law enforcement. The research establishes that the legal status of virtual assets in Ukraine remains ambiguous due to their classification as intangible benefits, which limits judicial protection opportunities. Key types of rights violations identified include fraud, asset loss due to technical failures, and insufficient liability of service providers. Analysis of international experience demonstrates the effectiveness of tools such as reserve funds (EU), clear asset classification (Switzerland), and an active regulatory role (USA). Specific measures proposed include amending the Civil Code of Ukraine to recognize virtual assets as a distinct type of property, specifying the obligations of service providers, establishing a guarantee fund, introducing licensing, and implementing educational programs and mechanisms for judicial and pre-trial protection. Legal regulation in Ukraine requires systemic improvement to ensure the protection of the rights of virtual asset market participants. The proposed changes will enhance legal certainty, reduce risks, and strengthen trust in the market. The study underscores the importance of harmonizing national norms with international standards to support the development of the digital economy and Ukraine’s integration into the global financial space. The findings provide a foundation for further scientific research and practical reforms in this field.