FUNCTIONING OF THE CRYPTOCURRENCY MARKET: CURRENT STATE AND DEVELOPMENT PROBLEMS

Abstract

The article is devoted to the analysis of the cryptocurrency market functioning and the existing problems of its development. Today, the world needs electronic transactions and the elimination of the state monopoly on the issuance of funds. The cryptocurrency market is the evolution that can change the current situation. The factors affecting the demand for cryptocurrencies were determined in this article. One of the most important is the desire of investors to receive a one-time income on the difference in purchase and sale prices, not showing interest in long-term investment in new technologies. Also, regulatory and legal features of cryptocurrency regulation in the international space are revealed. Thus, in some developed countries, cryptocurrencies are recognized as a legal, regulated means of payment, which is allowed to be used when paying for goods and services. The article identifies barriers to market development, including a ban on turnover in some countries and the lack of elaboration of the legal aspect. In conclusion, the opportunities and prospects for the development of cryptocurrency as a means of exchange are revealed. It is noted that more and more countries are beginning to actively understand the issue of the cryptocurrency market and make at least some regulatory framework for their regulation, but at the moment the main financial regulator of the Russian Federation continues to adhere to a negative point of view in terms of cryptocurrencies.