Legal Status Of Cryptocurrencies Research Articles

THE ROLE OF CRYPTOCURRENCY IN THE DIGITAL ECONOMY

Goal The article examines the concept of "cryptocurrency", substantiates the popularity of this new type of financial instrument in the economic space, highlights the main features of cryptocurrency as a type of virtual money and its impact on the economic system. Methodology. The following key features of cryptocurrency are highlighted: payment for goods and services; minimum level of impossibility of abduction; payments, fast and direct transactions; investment asset; business development on cryptocurrency, the functional roles of cryptocurrency in the digital economy are considered, trends and prospects for their development are investigated. Results.The main types of the most popular cryptocurrencies today have been considered, and their common features have been unified. It has been established that the most widespread cryptocurrency is Bitcoin. Market capitalization of cryptocurrencies provided. Scientific novently. An overview of crypto-spot exchanges is presented. The legal status of cryptocurrency was investigated, and it was found that more and more countries are granting cryptocurrency the status of a legal and legal means of payment, in some places equating it to electronic money. Practical significance. It is noted that cryptocurrency has both positive features and disadvantages, the main of which is the increased risk of fraud and fraud using digital currency.

REGULATION OF LOSS-INDUCING CRYPTO ASSET INVESTMENTS: CHALLENGES IN REGULATION, PROTECTION AND SUPERVISION

Cryptocurrency has become evidence of the rapid growth of the digital economy. This phenomenon has left countries worldwide in a dilemma regarding the legal status of cryptocurrencies. Specifically in Indonesia, cryptocurrency is regulated in a limited manner, creating a gap in legal protection for investors. This research employs a normative research method with a legislative and conceptual approach. The findings of this research indicate that Indonesia tends to position cryptocurrencies in a "limited" capacity, restricting them to being considered investments rather than currency. Nevertheless, due to the legal gaps, there is a need to establish standardized, periodic, and embedded security measures overseen by Bappebti to ensure maximum protection provided by every cryptocurrency wallet service provider. Additionally, it should be mandatory for every service provider to comprehensively insure digital assets to offer financial protection to individuals.

The legal nature of cryptocurrency as property: Accounting and taxation implications

This Article takes an interdisciplinary approach to examining the legal nature of cryptocurrency as property and its accounting and taxation implications for companies holding cryptocurrencies. Nowadays an increasing number of companies accept cryptocurrencies as payment and investment methods, but it is still unclear how to classify them as property, which results in uncertainties relating to their treatment for accounting and taxation purposes. This is a significant issue because it may affect the available legal remedies, presentation of companies’ financial statements and taxation outcomes. Although the legal status of cryptocurrency as property has now been well explored, little research has been conducted to think about the property, accounting and taxation aspects together.While cryptocurrencies are likely to be treated as either things in action or general intangible properties in law, in accounting they are often treated as inventories or intangible assets. Yet neither of them can satisfactorily represent the true nature of cryptocurrencies as property, because they fail to take into account the unique features of cryptocurrencies. We make several suggestions for improvement, including enhancing disclosure and making better use of contractual arrangements in the short run. In the long run, new legal provisions and accounting standards should be developed specifically for cryptocurrencies to better reflect their unique nature and features as property. But most importantly, professional judgement should always be exercised to ensure a true and fair view about cryptocurrencies is presented.

Crypto-Currencies Are Objects of Property Rights

‘Crypto-currencies are objects of property rights just as chairs are objects of property rights.’ There has been some controversy over this statement. With the rapid development and popularity of cryptocurrencies such as Bitcoin, the research and application of cryptocurrencies have exploded. Given that cryptocurrencies themselves are still evolving as innovative Internet financial products, it is necessary to first make a preliminary determination on the basic issues of what cryptocurrencies are and what their legal properties are, and this article will focus on whether cryptocurrencies are objects of property. This essay will primarily address the issue of whether or not bitcoins are considered property. We must first define the ideas and standards of property, such as definability, third-party identifiability, exclusivity, and competition, in order to ascertain the legal characteristics of cryptocurrencies. The legal status of cryptocurrencies will be determined by examining the structure, traits, and classification of property. In the end, it is found that most nations and regions also recognize cryptocurrencies as objects of property rights and that they usually have the property of things.

KRİPTO VARLIKLARIN İCRA VE İFLÂS KANUNLARINDA GÖRÜNÜMÜNE DAİR İSVİÇRE ÖRNEĞİ

Kripto varlıkların hukuki durumu henüz belirli değildir. Türk hukukunda bu hususta bir düzenlemeye ihtiyaç vardır. Bu çalışmada kripto varlıklarla ilgili İsviçre örneği ele alınmaktadır. İsviçre hukukunda 2021 yılında yürürlüğe giren düzenlemelerin amacı, kripto varlıklar hakkında değişik sistemleri içerisinde barındıran hukuki bir yatırım ortamı tesis etmektir. Bu anlamda İsviçre örneğinde kripto varlıklar hakkında hukuki düzenlemeler yapılırken ekonomi hukukunun maddi hukukun ve icra ve iflâs hukukunun birçok kurumlarından yararlanılmıştır.
 Kripto varlıklar için hazırlanan yatırım ortamının oluşmasına hizmet eden düzenlemelerden biri, İsviçre İcra ve İflâs Kanunu madde 242a’dır. İsv. İİK’de kripto varlıkların her icra işlemindeki görüntüsü ayrı ayrı düzenlenmemiştir. Dolayısıyla kanun koyucunun kripto varlıklar hakkında düzenleme yaparken kazuistik bir yöntem kullanmadığı belirtilmelidir. İsv. İİK’de, güvenli yatırım için önemli bir unsur olan aracı kuruluşlar ile yatırımcılar arasındaki ilişkinin iflâs tasfiyesi boyutuna odaklanılmıştır. İsv. İİK m. 242a, aracı şirketlerin tasfiyesinde kripto varlıkların hariç tutulabileceğine ilişkindir. Bu maddeden bir kaç farklı sonuç çıkartılabilir. Örneğin kripto varlıkların iflâs tasfiyesine dair maddelerde yer alması, aynı zamanda kripto varlıkların haciz işlemine konu ve iflâs masasına dahil olacağını da zımnen ifade etmektedir. Bu çalışmada İsviçre hukukunda yapılan kanuni düzenlemelerde yer alan gelişmeler ışığında, iflâs tasfiyesinde kripto varlıkların durumu tartışılacaktır.

Introduction to Cryptocurrency: An Overview

Cryptocurrency is one of the safest digital money. The currency has broader usage. Bitcoin and different sorts of tokens in addition to coins with all forms of cryptocurrency were utilized in India for a long term now. Cryptocurrency has no fund transfer limit, account of the people cannot be hacked and also there is no central point of failure. The transactions of these sites cannot be handled by a third party. Therefore this paper mainly focuses on secondary data to understand the concept, types, advantages, disadvantages, and legal status of cryptocurrency in India. The study found that cryptocurrency brought out an effective advancement to the sectors like e-business and e-payment. Nevertheless, the cryptocurrency had lack of trust yet. It is must to take adequate steps by the India Government to administer for making it safer, transparent and more trustworthy.

Криптовалюта, як предмет кримінального правопорушення проти власності: національне та міжнародне законодавство

The article defines the essence of the concepts of cryptocurrency, bitcoin and mining, considers the status of cryptocurrency in Ukraine and other countries. In addition, problems related to the uncertain status of cryptocurrency are indicated, ways to solve them are proposed, special attention is drawn to the disclosure of the conceptual aspect in the qualification of criminal offenses related to cryptocurrency. At present, the use of cryptocurrencies as a financial instrument by various states is increasingly common, and Ukraine is no exception. According to the reports of the Chainalysis platform, Ukraine ranks high in the ranking of both the general use of crypto-assets and their use for illegal purposes. According to the Ministry of Digital Transformation of Ukraine, our state is a leader in the use of virtual assets among the population; the Ukrainian community of blockchain developers is one of the largest in the world and is in the top 3. Cryptocurrency is a digital (virtual) currency, the unit of which is a coin, protected from counterfeiting, as it is encrypted information that cannot be copied, because the emission and accounting of cryptocurrency is based on asymmetric encryption using various cryptographic protection methods, such as Proof-of- work and/or Proof-of-stake. The physical feature characterizes the technical aspects of the functioning of the cryptocurrency, the economic feature is determined by the price that interested parties can pay for it, and the legal feature is established on the basis of a consistent analysis of the types of civil rights objects provided for by the current legislation. So, in the context of criminal law regulation, cryptocurrency is data in electronic form that has a price and is the subject of the right to information. The attractiveness of cryptocurrencies for the criminal world is due to the fact that Bitcoin and other cryptocurrencies are based on the principle of decentralization and the Blockchain system: electronic money is not tied to and is not controlled by any financial authority of any country, users of the system remain anonymous and have equal statuses. Cryptocurrency, the main advantage is its anonymity, in addition, the personal data of the owner of the electronic wallet is kept secret and it is only a set of symbols by which it is impossible to determine the owner, therefore it is impossible to recognize the name or address of such a user, and the history of transactions is open information. Agreements related to cryptocurrency are also anonymous, besides, they are irreversible. Cybercrime has also become widespread, in particular criminal offenses with cryptocurrencies, because in Ukraine and the world, individuals and legal entities are increasingly faced with their illegal acquisition, however, in our country, the legal status of cryptocurrencies has not yet been determined, in addition, so far in Ukraine does not provide for liability for illegal possession of cryptocurrency, currently in the world there are already quite widespread situations of criminal offenses against property (theft, robbery, extortion, fraud), where the object of encroachment is computer equipment, hard drives or portable crypto wallets together with the corresponding passwords from them for the purpose of taking possession of cryptocurrency and receiving funds from its further conversion.

Examination of the Tax Treatment of Cryptocurrency Transactions in Nigeria

Tax is assessed and paid in the legal tender in which the transaction was conducted. A legal tender is a fiat currency centrally issued by the government through its Central Bank and is legally declared and designated as money to meet all kinds financial obligations including payment of taxes and debts within the boundary of a particular country. However, advancements in technology led to the emergence of virtual medium of payment such as ‘cryptocurrency’ which do not enjoy legal tender status like fiat currency. Over the past decade, there has been an increased number of transactions in Nigeria where cryptocurrency was the means of payment. This raises the question as to how such transactions will be assessed to tax bearing in mind that tax can only be assessed and paid in the currency in which the transaction was conducted. In addition, the virtual nature of cryptocurrency creates opportunities for tax avoidance thereby constituting a serious tax challenge for a developing country such as Nigeria. It therefore becomes necessary to address the taxation of cryptocurrency transactions to prevent tax avoidance that can arise therefrom. This objective of this article is toexamine the nature and the legal status of cryptocurrency. The article will also examine the tax treatment of cryptocurrency in some selected tax jurisdictions as well as the tax challenges posed by cryptocurrency transactions.

DIGITAL CURRENCY AS A SUBJECT OF CRIME AND A MEANS OF COMMITTING CRIMES

In this article, the author examines the issues of the criminal legal status of digital currency as an objectand as a means of committing a crime. In 2020, a special Federal law was adopted defining the legal status ofdigital assets, as well as amendments were made to the Civil Code of the Russian Federation concerning theestablishment of the legal status of cryptocurrency or digital currency in the terminology of these regulationsas an object of civil rights. Significant changes in the civil legal regulation of cryptocurrencies have led to achange in approaches to assessing the criminal legal status of virtual money. In particular, the recognitionof digital currency by other property has allowed solving a number of qualification issues, but until now,criminal law is very cautious about the official recognition of cryptocurrency as the subject of a crime. Theauthor of the work offers options for the qualification of crimes committed using digital currency, in theabsence of changes in the criminal law and explanations of the Highest Court.

Changing the legal status of cryptocurrency in Russia in 2020–2021 as a promising step into the future

Subject. The article deals with the process of cryptocurrencies development in Russia after the change in their legal status, and the forecast of further legislative changes in this area. Objectives. The aims are to consider the change in the legal status of cryptocurrencies in Russia from January 1, 2021, the successful experience of legal regulation of cryptocurrency turnover in Japan, and to compare it with the Russian experience of recent years; to justify the need for further legal changes in the field of cryptocurrencies in the Russian Federation; to address prospects for active implementation of cryptocurrencies in Russia. Methods. The study employs methods of comparative and systems analysis, method of observation, generalization, classification, the analysis of theoretical Russian and foreign sources, the structural type of analysis, using analytical, graphical and statistical tools. Results. The paper presents the main legislative changes that have taken place in the field of cryptocurrency adoption in Russia since January 1, 2021; considers draft laws on settlement of cryptocurrencies of the past years, explains their fundamental shortcomings. It predicts legislative initiatives in cryptocurrency development in the Russian market and proves the further need for changes in the regulatory framework for cryptocurrency. Conclusions. Tightening and regulating the cryptocurrencies in the Russian financial and economic market are a timely response to speculation and fraud. The change in the legal status of cryptocurrencies in Russia is a step into the future.

Liability in the field of digital payment systems and cryptocurrencies: mission is (im)possible?

An electronic payment system is a system of settlements between different organizations and Internet users when buying or selling goods or services over the Internet. The relevance of the research topic is that electronic payment systems are used widely at the present stage of the development of society. This area has not escaped criminal activity. Penalties for digital payment systems and cryptocurrencies should be commensurate with the level of damage caused. The article analyzes the international legal establishing liability for this type of crime. At the instant, it remains an open question for further study of the legal status of cryptocurrency in different countries and the settlement of penalties for violations in the field of digital payment systems and cryptocurrency. Research methods: comparison, observation, analysis, synthesis, analogy, the system method, generalization method, and formal-legal method. According to the results of the study, the international comparative aspect of the types of liability for offenses in the field of digital payment systems was analyzed; the issue of criminal liability for offenses in the field of digital payment systems and cryptocurrencies, as a key punishment for these actions; identified means of protection of payment systems; the issue of legal regulation of cryptocurrency in different countries.

Cryptocurrency as a secondary form of manifestation of finance virtualization

Object: Object of the paper is to develop theoretical principles that reveal the content, functions and role of cryptocurrency as new, quite controversial means of settlements appeared in digital society. Cryptocurrency is studied as a secondary form of finance virtualization. The investigation is directed on cryptocurrency’s theoretical and practical aspects of functioning.Methods: The investigation used statistical and economic-mathematical methods to analyze the current trend of development in bank and non-bank payment systems. The authors collected data about legal status of cryptocurrencies, then the obtained data was analyzed according to its official status in developed and developing countries.Findings: It was found that the biggest non-bank electronic payment system PayPal, as a secondary form of virtualization manifestation it currently shows higher growth of rate than the biggest bank card payment system — VISA. The position of cryptocurrencies in National Legal Systems of developed and developing countries was collected and analyzed, according to its legal status. The possible risks and controversial questions of cryptocurrency’s influence on price stability, stability of payment and financial systems are determined.Conclusions: Emergence of cryptocurrency in modern society is the evidence of global digitalization. Virtualization in its primary and secondary manifestation form affects financial sector. Secondary form of virtualization results in non-bank sector development, namely non-bank electronic payment systems (e.g., PayPal) and non-institutional digital schemes of settlements (cryptocurrency). Developed countries are mostly more progressive in cryptocurrency regulation than developing countries. In the case of global cryptocurrency spreading wide there are some risks national economies may face. They include the problem of price stability, the stability of the financial system, the stability of payment systems. Generally, the authors substantiate the requirement for search of the complete definition of cryptocurrency that may be integrated into national legal system for further regulation and risks controlling.

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

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.

CURRENT ASPECTS OF TRANSFORMATION OF ECONOMIC RELATIONS: CRYPTOCURRENCIES AND THEIR LEGAL REGULATION

The article is devoted to the analysis of transformation of economic relations due to the emergence of such phenomenon as cryptocurrency. It is substantiated that its appearance is connected with the development of the information society, the formation of the virtual economy and the spread of digitization processes in all spheres of economic activity. It is proved that despite the innovative nature of the revolutionary character and the considerable potential for stimulating radical changes in the sphere of economic relations and economic model of modern society, the cryptocurrency is a confirmation of the evolution of money. From the point of view of the theory of money, the ability of cryptocurrency to perform the functions of money (measures of value, means of payment and medium of exchange, accumulation, world money), as well as new specific functions — social, regulatory, indicative and others, — have been proved.
 Analysis of the practice of cryptocurrencies spread gave the opportunity to reveal their characteristic features on grounds of the format of money, unit of account, legal status, money creation, stability of payment, mechanism of exchange, regulation and supervision, risks, etc. In addition, the positive properties of cryptocurrencies and their possible negative effects are identified.
 It is emphasized that the adoption and active spread of cryptocurrencies leads to the transformation of economic relations, and more precisely, the objective formation of a new system of economic relations as a compensator of the negative manifestations of a modern economic society, which, at the same time, has exacerbated to some extent the threats to the traditional monetary system. This is confirmed by the tendencies of the development of the cryptocurrency market, changes in the position of the central banks of the countries of the world from rigid rejection to the development of national cryptocurrencies, including in Ukraine.
 The problematic aspects of determining the legal status of cryptocurrencies in the regulation of cryptocurrency in Ukraine from the point of view of civil-law relations and relatively criminal-law context have been identified. It is concluded that it is necessary to determine the legal status of cryptocurrency in Ukraine, taking into account the position of the leading countries of the world.

Cryptocurrency as a modern phenomenon: advantages, disadvantages, problems of legal regulation

The article is devoted to the study of cryptocurrency as a new means of payment, which is relevant both in Ukraine and abroad. The urgency of the problem described in the article is due to the accelerated scientific and technological progress and global computerization of society, where modern technologies contribute to the emergence and development of new mechanisms of the economy, in particular, relations using non-cash payments. The main features of cryptocurrency are considered and argued in the form of its advantages: availability, speed, decentralization, security, and disadvantages: unreliability, distrust of users, inability to cancel transactions, use to commit illegal acts. The features that are controversial in modern conditions are anonymity and transnationality. The main problems of cryptocurrency and its legal regulation are generalized. Emphasis is placed on the practice of regulating the cryptocurrency market in the European Union, as well as on the legislation of the Republic of Estonia in the field of virtual assets. The legal status of cryptocurrency in Ukraine is considered, which is an urgent problem on the way to its legalization both in the legislative and technical plan. Attempts to legally regulate a new type of currency are analyzed. Bills and acts of the National Bank of Ukraine in the field of cryptocurrency circulation are described. Gaps in the current legislation, in particular in the Law of Ukraine "On Prevention of Corruption", were identified, and ways to solve such problems were suggested. It is concluded that it is necessary to develop and create effective legislation in the field of regulation and control of cryptocurrency circulation not only at the national but also at the international level, because otherwise there is a threat to economic and financial life of the state and society and other problems for the international community. in the form of criminal acts with cryptocurrency, because today in Ukraine there is no effective legislation on the circulation of cryptocurrency, and the number of problems with the use of digital currency is growing every day, so it is worth paying attention to such components as the Internet and virtual assets, as in the leading countries of the world this direction is important in domestic and foreign policy.

Legal Status of Cryptocurrencies: the Experience of BRICS

Legal Status of Cryptocurrencies: the Experience of BRICS

Accounting Treatment of Cryptocurrency: A Malaysian Context

"Cryptocurrencies have become the buzzword among society, especially after some prominent companies such as Wikipedia, Microsoft and Amazon accept the use of cryptocurrencies. Nonetheless, accounting treatment of cryptocurrencies appears to be a challenging area for standard setters, financial statement preparers, and also users. This is mainly because elements of cryptocurrency do not explicitly fall under any existing accounting standards. The fact that cryptocurrencies are held for different business models and intentions may affect how it should be treated under accounting standards. Hence, this research aimed to examine factors that affect the accounting treatment of cryptocurrencies in Malaysia. Different factors were examined including the function of cryptocurrencies, conceptual framework of financial reporting and the legal status of cryptocurrencies. Targeted respondents involved in this research were accountants in Malaysia. Data collected were analysed using SPSS and SmartPLS 3. SPSS was mainly used to analyse the demographics of respondents whereas SmartPLS 3 was used to carry out reflective measurement model and structural model evaluation. The results concluded that all the independent variables which are the functions of cryptocurrencies, conceptual framework of financial reporting, and the legal status of cryptocurrencies have a significant relationship with the accounting treatment of cryptocurrencies. The results of this study provide an insight about factors that standards setters and financial standards should consider when accounting for cryptocurrencies’ transactions in order to provide faithful representation and relevant information. Some limitations and suggestions are included in this research to provide ideas for future researchers to carry out further research. Keywords: Cryptocurrencies, Accounting Treatment"

Криптовалюта як валюта майбутньої фінансової системи

Annotation. Introduction. At the present stage of development of the world is the rapid functioning of all spheres of society. Based on this, today society seeks to be progressive, modern, and therefore the world introduces us to a new type of money that is gaining popularity – cryptocurrency. Currently, humanity is aimed at finding a more progressive way of realization of any financial transactions with minimal risk. Now, the cryptocurrency is in the same city, where was the first paper money during the popularization of the concept of “printing money”. That is why, after a certain period of time cryptocurrency calculations become commonplace. Purpose. The purpose of the study is to consider cryptocurrency as the currency of the future financial system and possible prospects for its future development in Ukraine and the world. Results. The article discusses the theoretical aspects and history of cryptocurrency as currency future financial system. The main types of cryptocurrencies, the process of their creation, which is based on the solution of computers to complex mathematical problems and their entry into the market, are identified. The advantages and disadvantages of using cryptocurrencies are studied, as well as its feature as decentralization, which distinguishes it from other currencies. It is emphasized that in the world, so far, there is no consensus on the further strategy for the development of cryptocurrency in the world, its legalization and legality of use, thus analyzing the legal status of cryptocurrency in different countries and prospects for use. The legal regulation of cryptocurrencies in Ukraine in accordance with the norms of Ukrainian legislation is considered. The peculiarities of the functioning of virtual currencies in Ukraine are highlighted. Conclusions. Cryptocurrency inevitably and actively popularized worldwide in furthering decade. In some areas, such as online gaming business, this kind of currency has found its application in full. In Ukraine, there is everything necessary for legal operations with cryptocurrencies, but it is at the legislative level that there is a problem that prevents the active distribution and use of such currencies. The situation when cryptocurrency is not banned, but also not allowed, is an additional reason for fraudulent schemes. Legal entities and individuals who want or are able to use cryptocurrency is not protected. Similarly, the state can not get taxes from prospective activities. That is why the need for a clear establishment of the concept of “Cryptocurrency” by the law of Ukraine and the creation of mechanisms for regulating any activity with cryptocurrencies at the legislative level, are the priority state tasks at present. Keywords: cryptocurrency; currency; bitcoin; mining; digital currency; the legal status.

Issues of regulating cryptocurrency and control over its turnover: international experience

The article deals with an important and relevant topic – the definition of the concept and essence of cryptocurrencies, the study of the problems of their legal regulation, the rationale for control over their turnover, as well as the analysis of ways to counter money laundering that involves cryptocurrency. The authors emphasize that measures taken exclusively at the state level are not enough to create an effective, integrated and comprehensive system for regulating the legal status of cryptocurrencies. Therefore, international cooperation and the strengthening of cooperation between various states in the field of cryptocurrency regulation is important. The authors analyze the scientific doctrine regarding the essence of cryptocurrency. It was found out that there was no single approach to the definition of “cryptocurrency” among scientists. Moreover, cryptocurrencies in various laws of the world have different status. The authors used general scientific and special scientific methods, which provided an objective analysis of the purpose of the study. The research methods were used in interconnection and interdependence, which ensured the comprehensiveness and completeness of the research, as well as the validity of the obtained scientific results. The authors have determined states where cryptocurrency has an official status, is at the initial stage of legal regulation or completely prohibited at the state level. The relevance of the research consists in the actual absence of the legal framework for the regulation of cryptocurrencies, which is conditioned by the novelty of this phenomenon and the problems related to its functioning. The authors proposed their own definition of cryptocurrency based on its main features.

Cryptocurrency as an object of tax law: practice of political application and legal regulation

Problem setting. The work is devoted to the study of the legal status of cryptocurrency as an object of taxation. The legal status of cryptocurrency in legal relations between tax authorities and individuals or legal entities is an urgent problem, since there is only a small number of works on this issue. Of particular note is the study of international experience in taxation of cryptocurrency transactions, as well as an analysis of the most relevant proposals for amending national legislation in order to establish the legal status of cryptocurrency and transactions related to cryptocurrency as an object of tax legal relations. Analysis of recent researches and publications. Despite the great relevance of this topic, in the modern science of tax law there are no fundamental scientific works and studies on the problems of taxation of cryptocurrency and cryptocurrency transactions. Target of research. The purpose of the scientific article is to conduct research on the legal nature of cryptocurrency, as well as the disclosure of theoretical, practical problems and features of legal regulation of cryptocurrency and operations related to the use of cryptocurrency in modern tax law. Article’s main body. The article deals with the legal nature of transactions connected with the use of the cryptocurrency as an object of tax relations. The issues of the possibility of attributing income, as well as profits from cryptocurrency transactions to the objects of taxation of personal income tax, profit tax, and value-added tax, are disclosed in accordance with the current tax legislation. The following conclusions have been drawn: it is impossible to impose the relevant taxes on income and profits from transactions with the cryptocurrency; there is a conflict in the current legislation, according to which the proceeds from transactions with cryptocurrency may be subject to the Law ‘On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime or Terrorism Financing, as Well as Financing Proliferation of Weapons of Mass Destruction’ In addition, foreign experience of legal regulation of transactions with cryptocurrency in tax legislation in such economically developed countries as the USA, Great Britain, Canada, Germany, Switzerland, etc. has been analyzed. It has been established that nowadays, in world practice, there is no unambiguous approach to the tax regulation and taxation of cryptocurrency transactions. So, in some countries, the income from operations with cryptocurrency is taxable, while in others cryptocurrency transactions do not belong to objects of taxation. Conclusions and prospects for the development. As a result, the author presents her own proposals on amending the tax legislation aimed at determining the legal status of cryptocurrency transactions in tax law. The article is devoted to the legal nature of transactions related to the use of cryptocurrency as an object of tax relations. Foreign experience of taxation of operations with the cryptocurrency is analyzed. The author considers current proposals for amending the tax legislation of Ukraine, who’s the purpose of which is to determine the legal status and control measures for compliance with tax legislation in the implementation of cryptocurrency transactions in tax law.