LEGAL PRINCIPLES OF THE OPERATION OF CRYPTOCURRENCY EXCHANGES

Abstract

The article examines the current state of legal regulation concerning the activities of cryptocurrency exchanges in Ukraine within the broader context of digitalization of the financial sector. It identifies the key legislative acts that govern the circulation of virtual assets, in particular the Law of Ukraine “On Virtual Assets,” as well as the draft laws aimed at amending the Tax Code of Ukraine. The study provides an analysis of current legislative initiatives, their advantages, and associated risks for market participants. Attention is drawn to the primary issues hindering the implementation of legal regulation for cryptocurrency exchanges in Ukraine, including the absence of secondary legislation, blocked financial operations through the banking system, legal uncertainty, and deficiencies in the financial monitoring regime. The article explores the impact of regulatory restrictions imposed by the National Bank of Ukraine on the operation of crypto exchanges and the shift of exchange platforms toward peer-to-peer models as a means of adaptation. The typology of cryptocurrency exchanges is reviewed, distinguishing centralized (CEX), decentralized (DEX), and hybrid platforms, with examples of the most active market players. The article emphasizes the need to harmonize Ukrainian legislation with international standards to ensure transparency, security, and the sustainable development of the virtual asset market. The article substantiates the necessity of urgent legislative measures aimed at launching the authorization procedures for crypto exchanges, defining a taxation regime, and introducing cybersecurity and anti-money laundering (AML) requirements. The conclusion highlights the potential for developing the cryptocurrency market in Ukraine, provided that a clear and stable legal framework is established.