ON THE ISSUE OF RECOGNIZING VIRTUAL ASSETS AS FOREIGN EXCHANGE RESERVES OF UKRAINE

Abstract

The article explores key aspects of the legal regulation of virtual assets in Ukraine at the intersection of private and public law. The authors focuses on the contemporary challenges associated with the expanding use of virtual assets, particularly in the context of legislative initiatives aimed at including them in the state's foreign exchange reserves. The impetus for this research and the examination of prospects for recognizing virtual assets as a component of Ukraine’s national financial system was the announcement of the creation of a national Bitcoin reserve in the United States. The study outlines the issues surrounding the integration of virtual assets into the legal framework of public governance, considering that virtual assets already have a clear legal status under civil legislation (private law). The authors analyzes the private-law nature of virtual assets, which are currently recognized in national legislation as digital things, and compares their specific characteristics with the key criteria for international reserves. Special attention is given to evaluating their liquidity, security, and risk levels in light of the requirements for foreign exchange reserves. The study concludes that although digital assets are a promising object for public finance, their transition into the realm of public law requires thorough legal elaboration and the development of a new regulatory approach.