The formation of legal base for regulation of cryptocurrency circulation in Ukraine as an important component of counteraction to their use for illegal purpose

Abstract

The article highlights the current problematic aspects of formation of the organizational and legal principles for cryptocurrency circulation, as well as the threats posed by their uncontrolled circulation, identifies the main areas of improvement of its legislative regulation. It was concluded about the necessity of international standards implementation for regulating activities in the field of creation and circulation of cryptocurrencies, their control and monitoring, identification and investigation of related illegal activities, establishment of public-private partnership and development of international cooperation in this area. The experience of EU countries in determining the legal status of cryptocurrency is highlighted. The new edition of the Law of Ukraine «On Prevention and Counteraction to Legalization (Laundering) of Proceeds of Crime, Financing Terrorism and Financing the Proliferation of Weapons of Mass Destruction» is analyzed, the content of which provides a number of innovations for organizing monitoring of the use of virtual (digital) assets as a means of calculating and combating money laundering money and terrorism financing using cryptocurrency. Legislative innovations of implementation of the updated FATF recommendations on counteraction to money laundering and financing of terrorism with use of cryptocurrencies are covered: improvement of the state policy in the field of counteraction to use of cryptocurrencies in illegal activity is necessary; coordination of work of controlling and law enforcement bodies of Ukraine on counteraction to use of cryptocurrencies for illegal purposes and their interaction competent authorities of foreign states; the latest forms and methods of detection and termination of activities related to the use of cryptocurrencies for illegal purposes; analysis of potential risks and threats of using cryptocurrencies for illegal purposes; blocking the propaganda of the possibility of using cryptocurrencies as a means of payment in illegal activities and to finance its various forms; conducting legal work with the target audience on the inadmissibility of using cryptocurrencies for illegal purposes and the necessity of immediate informing the authorities about the identified cases.