Problems of determining the competent authority for supervision and regulation of the virtual assets market

Abstract

The article examines the problem of determining the competent body for the supervision and regulation of the virtual asset market in Ukraine in the conditions of active digitalization of the financial system and European integration processes. The relevance of the topic is due to the rapid growth of the circulation of cryptoassets, significant volumes of operations in the domestic market, as well as the need to adapt national legislation to the requirements of the EU MiCA Regulation, which introduces uniform approaches to the regulation of the cryptoasset market in the member states of the European Union. The lack of a clear definition of the regulatory architecture in Ukraine creates legal uncertainty, restrains investments and complicates effective financial monitoring. The methodological basis of the study is systematic, formal-legal, comparative-legal and structural-functional methods, which made it possible to analyze the provisions of the Law of Ukraine «On Virtual Assets», draft law № 10225-d, the MiCA regulation, as well as the practice of EU member states regarding the determination of national competent authorities.

As a result of the study, it was found that the dualistic model of the distribution of powers between the NBU and the NCCPFR, enshrined in Ukrainian legislation, creates risks of duplication of functions, conflict of competence and contradicts the European model of the concentration of supervisory powers. It is substantiated that the mechanism of determining the regulator proposed by draft law № 10225-d through the decision of the Cabinet of Ministers does not correspond to the principle of independence of financial regulators. A conclusion was made about the expediency of determining the NKCPFR by the main regulator of the virtual asset market with a clear separation of powers from the NBU regarding electronic money tokens, which will ensure legal certainty, compliance with MiCA standards and will contribute to the legalization and development of the crypto market in Ukraine.