Legal regulation of currency relations

Abstract

The aim of the study is to assess the effectiveness of the modern currency supervision system in Ukraine and to identify its specific features in the context of internal and external challenges. To achieve this goal, a set of scientific research methods was applied, including comparative and systemic analysis, legal interpretation, and generalization of the practice of applying current legislation. The study covers an analysis of Ukraine’s legal and regulatory acts, decisions of the National Bank of Ukraine (NBU), European Union (EU) legislation, and international treaties in the field of currency regulation. The study establishes that currency relations combine public-law and private-law elements, are regulated by legal norms, and involve participation of individuals, legal entities, and state authorities with special powers, including the NBU. The evolution of the national currency regulation system has been analyzed, including liberalization processes, the implementation of a currency supervision model, and restrictions on currency operations caused by the Russian Federation’s military aggression. Key problems have been identified, including the instability of the legal framework, the absence of a normative definition of "currency relations," insufficiently regulated balance between NBU powers regarding control and market freedoms, and the need to improve mechanisms for regulating currency operations considering Ukraine’s integration course and international standards. A scientifically grounded definition of currency relations is proposed, reflecting their complex nature and the combination of civil, financial, and administrative aspects, as well as the role of the state regulator in ensuring the stability of the financial system. The scientific novelty of the study lies in the formulation of a comprehensive definition of currency relations and the substantiation of state intervention mechanisms that ensure a balance between control and market freedom. The results of the study have practical significance for improving legislation and enhancing the effectiveness of Ukraine’s integration into the global financial and economic space.