Some aspects of legal regulation of cryptocurrency circulation in Ukraine

Abstract

The impact of modern information technology has led to the emergence of a new form of currency – cryptocurrency, based on blockchain technology. This study aims to analyze the existing legal framework and delve into potential ways of legal regulation of activities related to the circulation of cryptocurrencies, in particular bitcoin. To achieve this goal, the study used a comprehensive set of both general scientific and specialized cognitive methods, including the comparative legal method, the systemic and structural method, methods of generalization, analysis and synthesis.
 The study clarifies the essence of blockchain-based cryptocurrencies as an alternative to traditional fiat currencies based on the fundamental principle of decentralization. It is noteworthy that among the many cryptocurrencies, bitcoin stands out with a distinctive feature called “hardness,” which gives it the properties of “digital gold.” This quality makes bitcoin a powerful means of preserving value, like precious metals, strengthening its status in global finance.
 In addition, the study outlines the current state of legal regulation of relations related to the circulation of virtual assets. A thorough analysis of the existing legal framework and its effectiveness in addressing the unique challenges posed by decentralized currencies has also been conducted.
 The study pays considerable attention to the prospects for the development of legal regulation of cryptocurrencies, which will consider the dynamic nature of virtual assets.
 To summarize, this study contributes to the understanding of the economic intricacies inherent in blockchain-based cryptocurrencies, with a special emphasis on the “hardness” of bitcoin as a distinguishing factor. In addition, the study sheds light on the current state of legal regulation of virtual assets, paving the way for insightful predictions of the future regulatory landscape. This work not only adds to the academic discourse around cryptocurrencies, but also serves as a valuable resource for policymakers, practitioners and academics grappling with the challenges and opportunities presented by this new financial paradigm.