Circulation Of Cryptocurrencies Research Articles

SYSTEM ANALYSIS OF SUBJECTS CRYPTOCURRENCIES OPERATIONS IN THE CONDITIONS OF GLOBAL CHALLENGES

The article considers cryptocurrency as a new type of intangible assets and the regulatory and legal support for its implementation. Particular attention is paid to defining the content, legal status, features of accounting, and taxation of transactions with such assets. The market capitalization and bitcoin forecast are analyzed. The interdependence between the exchange rate of bitcoin and pairs of the most influential world currencies, world prices for precious metals, and securities rates on the largest stock exchanges is determined. The most significant influencing factors on the bitcoin price are determined using correlation and regression analysis. The advantages of using cryptocurrencies have been identified, including high speed of transactions, reduction of the intermediaries number, and low fees. The threatening nature of the crypto-industry development for the economic potential of the state is also determined, taking into account available with current global challenges such as cyberattacks and fraud and data theft. Real fraud schemes in the field of crypto-circulation are considered. It is noted that without determining the clear legal status of cryptocurrencies in the country, it is impossible to resolve the legal, accounting and tax consequences of these transactions. It was determined that for the legal circulation of cryptocurrencies, the creation of a financial institution or a special state body, which should exercise control over the cryptocurrencies circulation, must be ensured as a minimum; introduction of taxation for companies whose activities are related to the crypto industry; establishing the obligation of users to declare their income and profits from crypto-assets, etc. Because of this, the functions of state authorities in regulating operations with cryptocurrencies are characterized, and the changes that will be introduced to the Tax Code of Ukraine are analyzed, regarding the taxation of transactions with cryptocurrencies, which in the future will make it possible to increase budget revenues, regulate and facilitate accounting and taxation of transactions with cryptocurrencies, use legal remedies for virtual assets, reduce possible tax evasion, etc.

Зміна ролі криптовалют у світовій фінансовій системі через збройну агресію проти України

Introduction. Сryptocurrency as a component of Ukraine's digital war against Russia. Rapid collection of funds from all over the world to help Ukraine.The USA imposes sanctions on the Russian Federation. Russia is looking for methods to circumvent sanctions. The purpose of the research work is to develop proposals for greater effectiveness of international sanctions and to find new useful methods of using cryptocurrency for Ukraine, which is part of the international financial system. Problems. Sanction packages are applied to various sectors of the economy, and following the implementation results, the following packages of sanctions are produced by the countries, so, according to the results of the implementation of sanctions, certain Russian banking institutions have been circumvented by using crypto market tools and operators that interact with sanctioned Russian banks, companies, and individuals. The use of traditional financial services, financial technologies and alternative payment services is a more effective way of circumventing sanctions in terms of volumes and costs than the use of crypto-assets.Goal. Development of proposals to increase the influence on the implementation and effectiveness of international sanctions, the need to take quick and optimal actions to eliminate the activities of many Russian cryptocurrency tools for circumventing sanctions. Materials and methods. General scientific and research methods are used: analysis, theoretical generalization, synthesis, description, comparison, observation and study of foreign mass media articles. Results. Attention was focused on Ukraine's new positive use of cryptocurrency, which is part of the international financial system, unprecedented use of new digital assets to raise funds to support Ukraine during the war. Conclusions. Crypto assets have become Ukraine's deadly weapon against Russia. Taking into account the advantages of the circulation of cryptocurrencies and virtual assets in general, the private sector in Ukraine organized charitable funds for the accumulation of resources, among which crypto funds took a leading place and were able to quickly cover the needs of defenders of Ukraine, citizens who suffered from Russian military aggression, supported socially vulnerable Ukrainian citizens. At the same time, IT specialists and amateurs organized themselves into an IT army, which was able to completely or for significant periods stop the activity of the infrastructure of the aggressor states, which slowed down the flow of resources for the continuation and escalation of military operations.

Cryptopace and problems of decentralization of the financial system: view from Russia

The article examines the problems of the formation of cryptospace in modern Russia, determines the objective prerequisites for the formation of a parallel fi nancial system, which is based on blockchain technology and the idea of cryptocurrency circulation. The author presents the characteristic features of centralized and decentralized financial systems, considering differences in the way to achieve goals, the functioning of regulatory norms of legislation, the degree of fi nancial independence and manufacturability. It is indicated that the very ideology of a free market economy and free circulation of information in the context of digitalization led to the emergence of these phenomena. The objectivity of these phenomena raises the question of the admissibility of their introduction into the fi nancial system of the Russian Federation. The author critically comprehends the provisions regarding the advantages and disadvantages of cryptocurrencies in the context of the development of the fi nancial system. It is indicated that this form of circulation of fi nance is new and promising, although it carries signifi cant risks for both the fi nancial system and users. At the same time, arguments are given in favor of the legalization of cryptocurrencies in Russia, a model for the circulation of cryptocurrencies is given that considers the interests of all participants in virtual monetary relations, and a promising direction for further research on cryptocurrencies and blockchain technology is identified.

ADAPTATION MECHANISM OF THE CRYPTO INDUSTRY IN THE PROCESS OF VIRTUALIZATION OF FINANCIAL FLOWS

It has been investigated that the development dynamics of digital media environment causes the emergence of the crypto industry on the basis of blockchain technologies and asymmetric encryption of reliable transactions. The authors state that the crypto industry has been growing through the stages of adaptation, whose features are incredible dynamics and speed of transformations. It has been established that cryptocurrencies, introduced on the markets, function as a means of exchange, store of value and unit of account, are based on mathematical calculations, are a result of these calculations and have cryptographic protection. It has been noted that the basis of cryptocurrency is blockchain technology, considered as a distributed database created by electronic computing and representing a code, whose process of creation is called mining. The advantages and disadvantages hindering the development and use of cryptocurrency in the world have been outlined. Introduction. Current trends in the development of information technology and digitalization of economic processes create an innovative basis for the functioning of the financial market. The dynamic development of the digital media environment is due to the emergence of a new digital economy – Industry 4.0, which is accompanied by virtualization of financial flows through cryptocurrency circulation in the Internet environment based on new blockchain and asymmetric encryption technologies. Problem Statement. Modern computer information technology has significantly affected the global economy and the stock markets, creating opportunities for their virtualization. Today, despite the value of scientific results, many issues of organizational, legal, financial, information support, economic stimulation of the cryptocurrency market, as well as the adaptation mechanism of the crypto industry in the process of virtualization of financial flows remain unresolved. Although studies have been conducted by many authors, methodological approaches to solving the problems of the functioning of the financial mechanism and the integral assessment of the effectiveness of the development of cryptotechnologies are still insufficiently explored. In this context, there is a need for theoretical justification and the formation of a holistic view of the role of the crypto industry in the process of virtualization of financial flows as a basis for building effective financial policy, which determines the relevance of this study. Purpose. The aim of the study is to identify the main problems and outline the directions of development of cryptocurrency in the digital economy. Materials and Methods. The study of this problem was carried out using a multi-level concept, which includes a range of various scientific methods, in particular, dialectical and general scientific principles of complex research, which include: empirical (to identify approaches available in the global and domestic practice to the assessment of trends in cryptocurrency circulation and the cryptocurrency market – observation, comparison, description); theoretical-cognitive (to consider the essence and substantiate the cryptocurrency features – formalization, proposal and testing of hypotheses); general logic (to identify methodological problems of cryptocurrency integration into the financial system and differentiation of approaches to the concept of cryptocurrency – analysis, synthesis, scientific abstraction, generalization, induction, deduction, analogy). Results. It has been found that the emergence of cryptocurrencies has dramatically changed the perception of the world of finance and business. The costs of cryptocurrency extraction have been analyzed and their economic feasibility has been considered. It has been established that the main advantages of cryptocurrency are: the possibility of its use as an investment instrument, protection against inflation, lack of control and restrictions on financial transactions, anonymity, high speed transactions and low commission. However, there are some disadvantages, such as the possibility of a hacker attack, the high cost of cryptocurrency, the instability of its exchange rate, the complexity of legislation, the possibility of tax evasion and financing of criminal groups, speculation in the virtual currency market.

Development of Innovative Tools in Global Financial Markets

The purpose of the article is to study the theoretical foundations and develop practical recommendations for improving the process of functioning financial instruments in global financial markets. The article reveals the essence and characterizes the components of the modern global financial market, defines its role in the development of the national economy, and the peculiarities of its formation in the conditions of the expansion of innovative digital technologies. The essence of financial market instruments is revealed and the need to improve their investment qualities to the requirements of modern economic conditions is argued. Financial instruments that are in circulation on the financial market are systematized according to several features. Considerable attention is paid in the work to the circulation of innovative financial instruments, the main feature of which is a high level of risk. Peculiarities of the formation and functioning of derivative financial instruments were studied, and the essence and specifics of the use of credit notes on the stock market were revealed. The mechanism of circulation of credit notes is presented and their main functional features are defined. It is noted that the issuance and sale of credit notes enable borrowers to mobilize funds on the global financial markets, and improve their investment image in the international market through the formation of a high credit rating from global financial institutions. The peculiarities of cryptocurrency circulation on the global financial market from the point of view of today's most popular innovative financial instrument are revealed; the authors emphasized the dual nature of cryptocurrencies, as it has the properties inherent in stock market instruments and features that characterize financial pyramids. The dynamics of the development of the global cryptocurrency market over a long period have been analyzed. The peculiarities and problems of regulating the circulation and taxation of cryptocurrencies in Ukraine and the world are highlighted. The formation and specifics of circulation on the domestic financial market of bitcoin derivatives as a new financial instrument are described. The authors also focused attention on the spread of negative trends in the circulation of cryptocurrencies and substantiated possible ways to overcome them. The article analyzes the functioning and development of the option certificates and derivatives market in Ukraine in terms of stock and over-the-counter markets. The main factors restraining their development include inadequate regulatory and legal support, the small size of the markets, and a small number of tools used in them.

To the question of improving the legal regulation of the traffic of cryptocurrencies and electronic money in the aspect of fighting crime

The article is devoted to the assessment of the regulation of the circulation of cryptocurrencies and electronic money in the Republic of Belarus and ways to improve it from the standpoint of ensuring the fulfillment of the tasks assigned to law enforcement agencies, in terms of combating crimes and compensating for the damage caused by them. The paper reveals gaps in the legislation of the Republic of Belarus regarding the circulation of cryptocurrencies and electronic money, justifies the introduction of specific rules regarding the implementation of mechanisms to ensure the onset of legal liability for crimes committed.

Bitcoins Usage By Cybercriminals – Evolution And Current Mitigating Approaches

Bitcoins Usage By Cybercriminals – Evolution And Current Mitigating Approaches Daniel Tibina Apuri Digital Forensics & Cyber Security Graduate Programme Department Of Information Systems & Innovations Ghana Institute of Management & Public Administration Greenhill, Accra, Ghana E-mail: dapuri@gimpa.edu.gh Phone: +233205967243 ABSTRACT The issue of security is one of the most pressing concerns about the emergence and adoption of cryptocurrencies. There is currently a serious concern regarding the security of blockchain technology. Although cryptocurrencies offer a high level of network security by keeping transactions anonymous, it also raises the possibility of bitcoin being used for illegal reasons. Furthermore, the technology that underpins the operation of a cryptocurrency, like any other information system, is vulnerable to many forms of attacks. A connection where bitcoin is traded for traditional money is a weak spot in the cryptocurrency circulation chain. Because this occurs on newly unregulated exchanges, they are frequently targeted by hackers. Other dangers exist in the bitcoin industry. For example, with the fast appearance of new cryptocurrency exchanges, determining their previous performance and just hoping for their dependability becomes challenging. There are "grey" stock exchanges, which can halt operations at any time after withdrawing assets. The potential of a cryptocurrency to launder money or support terrorists is the most serious security concern for many nations. To combat money laundering, the Japanese government, finance ministers, and chiefs of central banks in France and Germany have proposed making cryptocurrency regulation international. The IMF also believes that worldwide regulatory oversight of the digital currency sector is required. Keywords: Cryptocurrencies, Blockchain, Security, Transaction, Distributed, Network, Encryption, Privacy, Regulations, Decentralised, Dark Web BOOK Chapter ǀ Research Nexus in IT, Law, Cyber Security & Forensics. Open Access. Distributed Free Citation: Daniel Tibina Apuri (2022): ): Bitcoins Usage By Cybercriminals – Evolution And Current Mitigating Approaches Book Chapter Series on Research Nexus in IT, Law, Cyber Security & Forensics. Pp 251-258 www.isteams.net/ITlawbookchapter2022. dx.doi.org/10.22624/AIMS/CRP-BK3-P40

CRYPTOCURRENCY AS MONEY: Islamic Monetary System Perspective

The existence of cryptocurrencies that have emerged and developed since the last decade is still a debate, both in terms of function, regulation and compliance with Islamic economic principles. Different countries give different attitudes towards cryptocurrencies. Some countries accept its existence, while some other countries reject it. This is inseparable from the question that arises whether cryptocurrencies function as money or commodities. In addition, the absence of an official institution that is responsible for and regulates the circulation of cryptocurrencies and no underlying assets is also another problem. This article aims to see how cryptocurrencies are positioned based on their nature, characteristics and functions using an Islamic finance point of view. The results of the study indicate that cryptocurrencies currently carry out more functions as a store of value that are not in accordance with the Islamic financial system. In addition, the use of cryptocurrencies as money and means of payment carries a fairly large risk. This violates the principle of property protection in the maqasid al-shari'ah view.

НАПРЯМИ ЗМІН У ПРАВОВОМУ РЕГУЛЮВАННІ ОБІГУ КРИПТОАКТИВІВ: АНАЛІЗ ЗАРУБІЖНОГО ДОСВІДУ

The proliferation of cryptocurrency transactions and the increase in their value raises the question of the need for a final solution to the problem of legal regulation of their circulation. The urgency of this task is exacerbated by the fact that leaving cryptoassets out of the legal field promotes their use in illegal activities and deprives the state of significant revenues from their proper taxation. The purpose of this article is to study the approaches to the legal regulation of the circulation of cryptoassets, which are recently formed in the world, to determine the positive experience and opportunities to borrow successful legislative decisions. The article analyzes approaches to the regulation of relations arising from cryptocurrencies in the United States, Canada, Great Britain, Germany, Austria, Estonia, China, Singapore and Australia. Particular attention is paid to the analysis of the European unified approach to the regulation of cryptocurrencies for all European countries, as well as cryptocurrency services. According to the results of the study, it is concluded that today the attitude to cryptocurrencies differs depending on the level of development of the country. However, recently there has been a tendency to focus efforts on the implementation of cryptoassets in the legal field and ensure legal regulation of their circulation. In general, 2020, the year of the pandemic and the transfer of life to the online format, was marked by special attention to the development of legal regulation of cryptocurrency circulation. Of particular concern to the authorities are features of cryptocurrencies such as decentralization and anonymity, which allow these assets to be used to launder criminal proceeds and finance terrorism. It is in this direction that government regulation of cryptocurrency circulation has been moving recently. Most countries in the world of cryptocurrency regulation focus on licensing cryptocurrency exchanges, identifying their users, taxing, and countering money laundering and terrorist financing. These principles are the basis of the unified approach to the regulation of cryptocurrency activities for all European countries proposed by the European Commission. It is noteworthy that both in the European unified approach to the regulation of cryptoassets and in their legal regulation in some European countries and the United States, it is proposed to classify cryptocurrencies and divide them into several categories depending on the functions they perform. These approaches to the classification of cryptoassets should be considered when determining the legal framework for regulating the circulation of cryptoassets (virtual assets) in Ukraine.

Республика Иран: встраивание в глобальные тенденции развития мировой экономики

The Islamic Republic of Iran, as an actor in the world economy, is developing in accordance with the emerging trends, however, the manifestation of these trends is quite individual. The place and role of Iran in the modern world are considered, the features of its development and expansion of cooperation, primarily, trade in the conditions of imposed sanctions are analyzed. It was stated that Iran also pursues a protectionist policy towards a number of countries. It is proved that Iran is quite seriously implemented in the world economy, which allows us to talk about the manifestation of the main trends in the Iranian economy, in particular, development and regionalization, within the framework of which Iran’s cooperation and promising relations with the EAEU within the framework of a member of this organization, cooperation with China and India within the framework of the Silk Road Economic Belt initiative and the Transcontinental Transport Corridor “North-South”, the Organization for Economic Cooperation. It is said that Iran does not remain aloof from the development of the digitalization and from the circulation of cryptocurrencies, the introduction of digital money, the development of its own payment system, its own Internet. There are considered the means of regulating this area, in particular, of mining and of developing digital money. The impact of the pandemic on the development of the considered trends is proved. The factors determining the future development of Iran are identified. It has been inferred that global trends will continue to manifest themselves in six main scenarios: from the great economic decline (least likely) to the economic prosperity. It is found that further economic transformations carried out under the influence of these trends will contribute to the development of the country.

Проблемы легализации криптовалюты в России: законодательные противоречия

The purpose of the study is to assess changes in Russian legislation and legislative initiatives related to cryptocurrencies and digital financial assets. The article focuses on the possible economic consequences of using cryptocurrency for Russian business; determining the degree of impact of transactions with digital assets on the country's economy in connection with the introduction of the Federal Law of the Russian Federation regarding cryptocurrency. The scientific novelty lies in the development and theoretical justification of the legal principles of regulation of cryptocurrency and its place in the domestic legal system, the need to improve the legislation of the Russian Federation in relation to cryptocurrency is substantiated. As a result, the existing legal framework governing the circulation of cryptocurrencies and digital assets in Russia was analyzed, measures of responsibility for failure to report on transactions with cryptocurrencies were identified, and the need to eliminate disagreements on the legalization of cryptocurrencies in the country was substantiated.

The concept and essence of cryptocurrency

The relevance of the research topic is related to the distribution and development of a new financial instrument, aimed at studying and developing such issues as the features of the object and subject of crimes committed in the circulation of cryptocurrency in our country and in other countries, international cooperation in the field of cryptocurrency circulation and the experience of foreign countries in this direction. These questions are important not only for understanding the relationship between the use of cryptocurrencies by transnational criminals, but also for finding measures to control and prevent such cybercrimes. It is necessary to make one more note, in this final qualification work such terms as cryptocurrency, virtual currency, digital currency and digital cash will be used interchangeably to describe cryptocurrency. In the era of globalization, the accelerated development of technology, it is impossible not to notice and feel the influence of the virtual world. This virtual world, referred to as the Internet, has simplified many life processes. In the recent past, crimes were more local and less transnational

The current state and prospects for further development of the global cryptocurrency market

The article examines the genesis and technologies of the cryptocurrencies, presents data from leading cryptocurrencies platforms for the purpose of in-depth analysis of the current market situation. In recent years, there has been a significant growth of the cryptocurrency market, the development of new technologies and products on the market, as well as an increase in its influence on more traditional financial markets. In this regard, the issue of regulating cryptocurrencies at the national and supranational levels is becoming increasingly relevant. The subjects of the research are the international cryptocurrency market, the technology of the distribution register, the experience of various countries in regulating the issuance and circulation of cryptocurrencies. Based on the results of the study, the authors identified current trends in the global cryptocurrency market. According to the authors, it is practically impossible to completely ban the issue and turnover of cryptocurrencies by the state due to their decentralized nature. Regulation of the cryptocurrency market is a new source of funds for the tax budget, and will also contribute to the further development of the field of digital technologies. In the article, the authors investigated the approaches a number of countries in the direction of regulation and legalization of the cryptocurrency market, which can be used as an example in the process of creating a regulatory framework for the Russian cryptocurrency market.

Analysis of the development of cryptocurrency instruments

Objective. The aim of the work is to determine the prospects for the development of digital financial instruments in the management of social and economic systems. Method. The comparative analysis of the results of an anonymous survey using interactive multi-user social networks was used as research methods in the work. Result. The factors and key parameters influencing the development of cryptocurrency mechanisms are revealed, the advantages and disadvantages of using digital tools are identified. Suggestions for the management of cryptocurrency instruments and recommendations for improving the reliability and development of digital instruments in the financial and digital environment are given. The results of the analysis of a survey of 1121 respondents on the topic of using cryptocurrencies are presented. The results of the study showed that the most commonly used cryptocurrencies are Bitcoin and Ethereum, with a significant proportion of respondents preferring digital activities such as mining and trading. At the same time, a significant number of respondents believe that the future development of digital financial instruments is directly dependent on the legitimization of cryptocurrencies by the state and improvement of blockchain technology. Conclusion. The development of cryptocurrencies cannot be assessed unambiguously. With the development of cryptocurrency instruments, a number of threats arise, which include significant volatility, the presence of legislative restrictions on their use, and the inability to withdraw operations. The further development of cryptocurrencies should be associated with the legal regulation of their distribution, both at the national and international levels, which will ensure the determination of their legal status among other monetary units. It is also necessary to carry out a phased introduction of cryptocurrencies into payment systems for cash settlements, which should be carried out on the basis of the organization of the official circulation of cryptocurrencies and blockchain technology.

Interrelation between State Regulation and Self-Regulation in the Cryptocurrency Market

The rapid development of the cryptocurrency market makes us think about the need and subject of regulation of activities related to their issuance, placement, storage and circulation. The question arises whether the activities that are related to them are entrepreneurial or professional, related to the commodity or financial market, subject exclusively to state regulation, exclusively self-regulation or both types of regulation at the same time. The authors come to conclusions that will allow building a theoretical basis for a more systematic perception of the cryptocurrency market in the future, including revealing the concept and legal nature of cryptocurrencies, the features of these objects of civil rights that require their free circulation in the financial market, the role of private entities in their creation and use. It is concluded that the activities related to the turnover of cryptocurrencies are entrepreneurial, unregulated activities in the capital market as part of the financial market. Special attention is given to public interest in the framework of the circulation of cryptocurrencies, in particular to national security issues, protection of the weak side of transactions using cryptocurrencies, protection of personal data. In particular, the authors acknowledge that intermediary activities in the cryptocurrency market involving financial services consumers should be regulated and recognized as professional. The authors, on the one hand, point to the need to ensure state regulation of the use of cryptocurrencies, on the other hand, emphasize that a balance must be achieved between public and private interests in this area, that it cannot be over-regulated, which will ensure stable economic growth in the digital environment.

Особенности правового регулирования и обращения криптовалют: зарубежный опыт

The purpose of the article was to study the approaches of foreign countries inrelationtothelegalregulation and circulation of cryptocurrencies. To achieve this goal, the method of chronological researchwasused, during which an analysis of the legislative framework of a number of foreign countries, their methodologyfor developing laws, policies and legal frameworks in relation to cryptocurrencies was carriedout. Thepeculiarities of the development of the ecosystem of cryptocurrencies and startups in the use of cryptocurrenciesontheterritory of a particular country, as well as the relationships that arise between intermediaries, startupsandinvestors in these countries, are studied. The opinions of experts, politicians, scientists concerningthefutureprospectsof cryptocurrencies in the legal field of foreign countries are noted. Complementing this withanassessment oftherisks and prospects in the use and integration of such a new "technological phenomenon". It is concludedthatcryptocurrencies will be able to become part of the global system if aspects of the licensingactivitiesof exchanges, as well as the administration, issuance of virtual currencies, storage and management of thirdpartiesbecomeacoordinated and controlled process.

АНАЛІЗ ВПЛИВУ ТЕХНОЛОГІЇ БЛОКЧЕЙН НА ФІНАНСОВУ СИСТЕМУ

The development of modern science does not stop, and new approaches and technologies are constantly appearing. A vivid example of new technologies is blockchain technology and its application in the financial sector. The article presents an analysis of the future development of blockchain technology. A review of modern studies in the field of application of blockchain technology in financial systems is given. The need for a long-term impact analysis of this technology on the financial system is justified because the technology's potential is not yet fully disclosed. Of course, because existing financial sectors, in particular, cryptocurrency generation, have incomprehensible prospects from economic and legal points of view. In the study, an analysis of this technology was conducted compared to the development of other fundamental technology that has changed the way of life and worldview over the past 30 years, namely the Internet. It was noted that a significant variation in the modern development of blockchain technology is that the early Internet was completely non-commercial. Internet was developed for military goals and used by scientists for communication between research institutes and universities. This difference was critical and allowed to form of the modern network architecture of the Internet. To make it in commercial conditions was problematic. The natural commercialism of the blockchain has led to the situation that today there are no general principles for regulating and use of modern financial technologies based on blockchain, both globally and nationally. The technological bases of cryptocurrency generation and the economic consequences of their circulation on the financial system are also considered in the work. So, need to develop basic principles for the generation, accounting, and circulation of cryptocurrencies at the national level, considering aspects of information and financial security. The need for further research is determined by the high speed of technology development. Areas of promising research in this context may be the use of technology in the commercial activities of enterprises and in the field of public administration and regulation in the financial sector.

Establishment and development of legal regulation of turnover of virtual assets

Problematic issues of functioning and further development of the market of virtual assets in Ukraine are outlined. Historical aspects of legal regulation of cryptocurrency circulation both in Ukraine and abroad are researched. The principles of development of the market of virtual assets in Ukraine are determined. Globally threatening trends in the use of virtual assets and cryptocurrencies have been identified. Legislative initiatives of some countries in the world to create national digital currencies are detailed. The threats and risks of using cryptocurrencies worldwide have been specified. The global trends in the development and use of virtual assets, in particular cryptocurrencies are outlined. The directions of the improvements of the legislative support for the circulation of virtual assets in Ukraine have been identified.

BLOCKCHAIN-TECHNOLOGIES: STATE AND PROSPECTS OF DEVELOPMENT IN UKRAINE

The article investigates the origin and development of distributed registry technology – blockchain. It serves as a database and is a reliable form of information storage. The global application of blockchain technology is widespread. Such countries using blockchain as USA, Estonia, Germany, Japan, Great Britain, UAE were analyzed. The technology is used in various industries and spheres of activity: public administration, non-cash payments, financial and production activities, the sphere of various professional services, the sphere of social security, etc. This allows to simplify activities and improve the level of state development. Ukraine is one of the countries that use blockchain technologies and one of those, where these technologies are used at the state level. The most commonly used blockchain in the field of high-tech enterprises (Fintech), at the household level, the blockchain is closely linked to the circulation of cryptocurrencies. Today there are about a hundred companies and projects in the blockchain industry of Ukraine. Among the main projects using this technology are: electronic land auctions, the activity of the State Land Cadaster, the State Register of Real Property Rights and the System of electronic trade in seized property. The main advantages and disadvantages, existing problems, prospects for development, and domestic projects using blockchain technology in Ukraine are identified. Analyzing users’ search queries on the Internet allowed us to conclude the growing interest in these last hours. SWOT analysis was conducted to determine further prospects for the use of the blockchain in Ukraine: the main strengths and weaknesses of the use of the blockchain in various fields are identified, and its potential opportunities and threats are described.

Digital Financial Assets: Problems of Recognition, Valuation and Legal Regulation in Accounting

The article reveals the author’s vision of the recognition, valuation and legal regulation of accounting of digital assets at company level.
 The economic nature of cryptocurrency is discussed through interpreting the functions of money: a measure of value, a means of circulation, a means payment and accumulation, and the global money. It is concluded that cryptocurrency does not comply with the classical definition of “money”, because it does not feature its main functions. But it can be said that cryptocurrency constitutes the first opened, digital alternative currency able to take the form of traditional money. 
 The procedure for cryptocurrency valuation in the business stocks and intangible assets is analyzed. In cases when a business entity is intended to buy cryptocurrency as a commodity, the transactions related to cryptocurrency flows should be recorded on the account 28 “Commodities”, whereas the transactions related to cryptocurrency production should be recorded on the account 26 “Finished products”. 
 The proposed improvements in cryptocurrency accounting in the company stocks will be realizable when the transactions on cryptocurrency purchase or production (mining) are performed on permanent basis. The recognition of cryptocurrency in the intangible assets of a company will be feasible on the following conditions: cryptocurrency does not have a physical form; it can be identified; it is a non-monetary asset. The distinctive features of Bitcoin in relation to financial instruments are outlined, ways of cryptocurrency production using ІСО, mining, forging etc. are discussed. 
 Regarding the legal regulation of cryptocurrency circulation in Ukraine, it is revealed that no normative and legal document exists to specify the legal status of the notions “virtual assets”, “digital financial assets” or “cryptocurrency”. By now, the draft law has been approved, intended to regulate purchase, sale and taxation of virtual assets. The official recognition of digital financial assets and blockchain technology is expected to promote the transition of Ukraine to the digital economy. This transition is going to give rise to the emergence of a new object of accounting, e. g. digital financial assets. The authors’ vision of the normative and legal regulation of cryptocurrency accounting at micro- and macrolevel allowed to propose a new national standard of accounting “Digital financial assets”, to develop a methodological framework for reporting the data on digital financial assets and their disclosure in the financial statements of companies.