Legal Aspects of the Use and Regulation of Cryptocurrencies in Modern Ukraine

Abstract

The article is devoted to a comprehensive study of the legal status and regulation of cryptocurrencies in Ukraine.

Using hermeneutical, systemic-structural and comparative legal methods, the author examines the content of the concept of “cryptocurrency”, the specifics of legislative regulation of virtual assets in Ukraine (with a focus on the Law of Ukraine “On Virtual Assets”), the issues of taxation of cryptocurrency transactions and the problems of legal liability for illegal trafficking in cryptocurrencies.

The purpose of the study is to identify gaps and contradictions in the current legislation, as well as to develop proposals for its improvement in order to ensure effective regulation of the virtual asset market in Ukraine and protect the rights of market participants.

The results of the study point to the need to strengthen currency control over cryptocurrency transactions, as well as over the activities of entities that shape state policy in the field of virtual assets regulation. The introduction of effective control tools provided for by the current legislation is an urgent need. The dynamic development of the global economy in the context of globalisation and digital transformation has significantly influenced the formation of new economic realities, in particular, the active spread of digital assets. These processes require an adequate legal response. The emergence of digital assets as a new form of property requires the development of a comprehensive legal regulation system that would strike a balance between innovative development and protection of the rights of market participants, as well as the stability of the financial system.

Conclusions. This study has revealed significant gaps in the national legislation on the regulation of cryptocurrencies. The uncertainty of the legal status of virtual assets and the lack of clear rules for taxation of transactions with them create obstacles to the development of the digital economy in Ukraine and may potentially encourage shadow transactions. The analysis of global practice shows that a comprehensive approach to regulating the cryptocurrency market is needed. The study confirms the need to develop a comprehensive approach to regulating the cryptocurrency market that would ensure a balance between innovative development and protection of the interests of market participants.

Based on the analysis, the author formulates proposals for improving the current legislation, in particular, legalisation of cryptocurrencies, creation of an effective control system and development of tax legislation.