Subjects of financial monitoring of cryptocurrency circulation in Ukraine and their powers: financial and legal aspect

Abstract

The article proves the relevance of studying the subjects of financial monitoring of cryptocurrency circulation in Ukraine and their powers. Based on the analysis of scientific developments on the outlined issues, the author substantiates the absence of systematic scientific developments on the outlined issues.
 The purpose of the article is to substantiate proposals for clarifying the subjects of financial monitoring of cryptocurrency circulation in Ukraine and their powers.
 The author clarifies the classification of subjects of financial monitoring of cryptocurrency circulation. According to the first criterion, «level of financial monitoring», the law distinguishes between subjects of general monitoring (the State Financial Monitoring Service of Ukraine, the Ministry of Digital Transformation, the National Bank of Ukraine, the National Securities and Stock Market Commission) and internal monitoring (banks, insurance and other financial institutions, exchanges and other participants in the virtual asset market, and individuals).
 According to the second criterion, «time of conduct», financial monitoring of cryptocurrency circulation is divided into preliminary, current and subsequent, and the subjects of these types of financial monitoring are identified accordingly.
 Based on the results of the study, the author suggests that the Law of Ukraine «On Prevention and Counteraction to Legalisation (Laundering) of Proceeds of Crime, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction» should be amended to provide for the division of subjects of financial monitoring of cryptocurrency circulation not by types of virtual assets, but by levels of such monitoring (general, internal), and also depending on the time of its conduct (preliminary, current, subsequent). When improving this Law, it is advisable to: define the mechanism for financial monitoring of cryptocurrency circulation, which should cover the entirety of the specified types of virtual assets; specify the powers of the subjects of each type of financial monitoring.
 The author concludes that, taking into account the novelties of legislation and the author’s own proposals, it is advisable to include a separate set of such entities as subjects of financial monitoring of cryptocurrency circulation in Ukraine, which is the scientific novelty of this study. At the same time, as a direction for further research, it is necessary to note the development of a model for financial monitoring of cryptocurrency circulation, taking into account important developments of the European experience in this context.