LEGAL REGULATION OF CRYPTOCURRENCY

Abstract

The article discusses the legal regulation of operations with cryptocurrency, which functions with the help of blockchain technology. It has been determined that blockchain technology will not only revolutionize financial spheres, but also has the potential to change approaches to data management, cybersecurity, logistics, medicine and other industries. Based on the principles of decentralization and security, it opens up new opportunities for optimizing business processes and ensuring transparency in other sectors of society. Purpose. It consists in an in-depth study of the essence of cryptocurrencies through the analysis of international experience regarding their legal regulation. In addition, the work is aimed at the development of specific proposals and prospects for the further development of the legal regulation of cryptocurrencies in Ukraine. Scientific novelty. It is noted that the development and expansion of the use of blockchain technology in Ukraine indicate a rapid process of adaptation to the digital age and define the country as a promising participant in the global innovation movement. It has been proven that outside of the financial sector, blockchain technology can serve as an effective tool for voting platforms and document and title management, which can contribute to improving the processes of democracy and administration. It is noted that Ukraine, being a supporter of digital innovations, is already implementing blockchain in public spheres, such as SETAM and the state land cadastre. However, the main application of blockchain in Ukraine in the public sphere is currently the cryptocurrency market, which is currently regulated by the Law of Ukraine "On Virtual Assets". Methods and methodology. In the course of the research, such methods as analysis and synthesis, methods of historical and logical modeling were used. Theoretical approaches were also applied, in particular the method of formalization and the method "from abstract to concrete". Results. In the proposed article, special attention is paid to the analysis of aspects of the practical application of the legal mechanism of the cryptocurrency market. Conclusions. The national legislation on the regulation of the cryptocurrency market in Ukraine needs improvement. This may include implementing a taxation system for cryptocurrency and defining a clear legal status for this type of digital asset. It is also important to determine the algorithm of actions for transactions with cryptocurrencies and establish transparent rules for their regulation. The creation of dedicated regulatory bodies that specialize in digital currency matters could contribute to more effective oversight of the industry. These authorities may be responsible for advising users, issuing licenses and controlling processes related to the use of cryptocurrencies, including money laundering prevention.