В ходе исследования проведен анализ рынка криптовалют для выбора более актуальной монеты с большой капитализацией. Благодаря своей набирающей популярности для исследования была выбрана криптовалюта ETH. Литературный обзор подтвердил актуальность и показал невысокий уровень изученности этой криптовалюты в рамках темы. Рассмотрены значения ряда за период с 14.03.2020 по 30.06.2020. Проведены тесты стационарности с помощью анализа графиков АКФ и ЧАКФ выбранного ряда криптовалюты, а также расширенные тесты Дики-Фуллера. Преобразованы исходные данные для уменьшения разброса дисперсии (логарифмирование) и исключение сезонности и тренда (взятие второй разности). Выполнено построение моделей прогноза с помощью модели авторегрессии — проинтегрированного скользящего среднего ARIMA (p, d, q) и с помощью статистических методов (анализ обычного и скорректированного коэффициентов детерминации) и информационных критериев Акайке и Швардца была выбрана единственная подходящая модель. Для того, чтобы можно было прогнозировать значения, была проведена диагностика модели по трем параметрам (остатки белый шум; модель стационарна и обратима) с помощью анализа остатков и теста единичного корня, и после получения успешного результата, спрогнозированы 2 значения за период с 01.07.2020 по 02.07.2020. Сравнение реальных и прогнозных значений цены криптовалюты показало, что сумма квадратов отклонений существенно ниже от выбранной точности результатов. Визуальный анализ графика также показал: модель способна формировать пики и спады цены. Был сделан вывод об эффективности данного метода в краткосрочных прогнозах криптовалюты. The study conducts an analysis of the cryptocurrency market to select a more relevant coin with a large capitalization. Due to its gaining popularity, the cryptocurrency ETH was chosen for the study. Literature review confirms the relevance and shows a low level of study of this cryptocurrency within the topic. The values of the series for the period from 14.03.2020 to 30.06.2020 are considered. The stationarity tests with the analysis of ACF and ChakF charts of the selected cryptocurrency series, as well as the extended Dickey-Fuller tests are carried out. The initial data were transformed to reduce dispersion (logarithm) and to exclude seasonality and trend (taking the second difference). Forecasting models were built by means of autoregressive model — ARIMA (p, d, q) integrated moving average and by means of statistical methods (analysis of ordinary and adjusted coefficients of determination) and Akaike and Schwartz information criteria the only appropriate model was selected. In order to be able to predict values, the model was diagnosed by three parameters (residuals white noise; the model is stationary and reversible) using residuals analysis and unit root test, and after obtaining a successful result, 2 values were predicted for the period from 01.07.2020 to 02.07.2020. A comparison of the real and predicted cryptocurrency price values shows that the sum of squares of deviation is significantly lower than the selected accuracy of the results. Visual analysis of the chart also shows that the model is able to form price peaks and declines. It is concluded that this method is effective in short-term cryptocurrency forecasts.
Ivana Martinčević, Vesna Sesar, Krešimir Buntak, Ivan Miloloža
The digital age creates new concepts, methods, and rules that are affecting the accounting process which presents new challenges in accounting practice. One of the most significant changes and innovations within accounting processing and the financial industry is the emergence of cryptocurrencies that create a completely new financial business concept. Cryptocurrency is the equivalent of electronic money and is completely digital. Cryptocurrencies and transactions with cryptocurrencies are frequent appearances in todays modern business but are not fully regulated. Accounting and tax treatment in the Republic of Croatia and other European Union countries but also beyond is not fully established and adjusted for doing business with cryptocurrencies. Due to the mentioned lack, cryptocurrencies and their transactions require strict regulation and adjustment operations. This article aims to investigate the development of cryptocurrencies and their involvement in the financial industry and business environment, with a focus on the accounting and tax treatment of cryptocurrencies within the accounting profession. Cryptocurrencies are rapidly developing on a daily basis and pose a significant challenge to the financial industry and especially their regulation within the accounting profession. A systematic literature review was undertaken to provide an overview of the related area of cryptocurrencies and their accounting and tax treatment. The terms ("cryptocurrency") and ("accounting" OR "tax") were used to collect data. The papers were reviewed to investigate whether a cryptocurrency control system has been established from an accounting and tax point of view and whether it functions as such but also its impact on the financial industry. Results indicate that the main problem that arises around the concept of cryptocurrencies and their accounting and tax treatment is insufficient regulation and inconsistencies in the implementation, monitoring, and evaluation of cryptocurrencies in the field of accounting at the local but also global levels.
Constantin Yarovyi, Olena Martynenko, Антонина Шнурко
Abstract. Introduction. Cryptocurrency is a completely new economic and legal phenomenon, different from traditional or electronic money. At the same time, it should be noted that there is no single definition in the world that would reveal its essence, economic and legal nature. Purpose. Taking into account the opinion of other scientists, it is necessary to consider the concept of cryptocurrency, the functions performed by virtual assets, as well as to determine the legal status of cryptocurrency in different countries of the world and the chronology of events that regulate the legal status of cryptocurrency in Ukraine. Results. Cryptocurrency provides a fast and reliable system of payments and money transfers, which is based on the latest technologies and is not under the control of regulatory state institutions. The article provides a brief overview of the term cryptocurrency as used by various sources. The most common cryptocurrency, created back in 2009, Bitcoin is also considered. Questions of its similarity to electronic money are raised. The advantages of cryptocurrency have been identified, some of which can be disadvantages at the same time. The analysis of the opinion of the scientific community allows us to distinguish the functions characteristic of virtual assets and the functions characteristic of fiat money. Positions of foreign central banks and other financial regulators regarding cryptocurrencies and cryptocurrency markets were also presented. The paper considered the chronology of events regulating the legal status of cryptocurrency in Ukraine. It is proposed to carry out further research on issues of cryptocurrency legitimization. Conclusions. The mechanism of state regulation of cryptocurrency in Ukraine requires further refinement, starting with streamlining the terminological base and determining the directions of work with this type of currency.
Introduction. In the last decade, the cryptocurrency market has shown significant development. The active growth of this market has created significant investment opportunities for entrepreneurs. In order to form highly profitable investments, one should pay attention to the price behavior of cryptocurrency coins and their niche in the cryptocurrency market. Scientific research analysis. Despite the impact of investments in cryptocurrencies on the economic development of many countries, scientific research in the field of cryptocurrencies is still inconsistent. Investment activities on the primary and secondary cryptocurrency markets were analyzed in the scientific publications by M. Duchenko, T. Pavlenko, Z. Dvulit, H. Peredal, M. Rebryk, I. Gonak and other scientists. However, scientific research on cryptocurrency investing is at an initial stage since a significant number of aspects of their implementation have not yet been worked out and require systematic development due to the rapid transformation of both the cryptocurrency market and the legislative provision of their functioning in the conditions of dynamic geo-economic changes. The purpose and tasks of the research. The purpose of studying cryptocurrencies as an investment field is to find out the advantages of investing in cryptocurrencies in comparison with other investment objects, as well as to evaluate the effectiveness of such investment through the use of mathematical modeling methods. Research methodology and methods. The following special research methods were used: direct observation; applied information processing methods for the development of tables of linear dependence; to determine the closeness of the relationship between the dynamics of the value of the main cryptocoins, the method of conducting analytical work on the calculation of the correlation coefficient was used. Research results. Cryptocurrencies have taken an important place in the development of investment activities. As an investment object in the primary cryptocurrency market, it is advisable to mine the Ethereum cryptocurrency, and in the secondary market, it is advisable to buy Ethereum and Bitcoin for investments, which occupy two thirds of the cryptocurrency market and between which there is a significant correlation. Investing in cryptocurrencies is advisable due to the significant potential of mining, the growth of the value and limits of the cryptocurrencies use. Investing in cryptocurrency coins is advisable both in the short term and in the long term. There is an average (not high) correlation between the primary and secondary markets of cryptocurrency, so an investor is recommended to focus on one of the forms of investment in order to obtain a high profit, and to reduce risks, you can diversify your business by investing in the primary and secondary markets. Scientific novelty of the research results. The possibilities of cryptocurrency investment in short-term and long-term periods were considered, and a slight correlation between the primary and secondary markets of cryptocurrencies was revealed. Cryptocurrency is a relatively new object of savings and investment, therefore, with dynamic changes in the legal regulation of the cryptocurrency market, the transformed conditions for the attractiveness of cryptocoins will be formed, and this will require reflection in further scientific publications. Practical significance of the obtained research results. According to the authors, investing in cryptocurrencies is appropriate both in the primary and secondary markets of cryptocurrencies (although the correlation between them is not high) in both the short-term and long-term perspectives. The obtained research results will be useful for use in the practical activities of conducting cryptocurrency business. The article contains: formulas: 6, fig. 2, table 5, bibl. 24).
The article highlights analogues of traditional financial instruments - decentralized financial services (DeFi), their protocols and essence, it also explores the spheres and types of activities, crypto-financial operations, defines the concept of decentralized finance and reveals the essence of blocked capital and market making. Concepts and prospects for the development of decentralized stablecoins and stable assets, their interaction, disintermediation function and decentralization are considered. Current risks associated with the use and adoption of DeFi areanalyzed, including market manipulation, wrong incentives, excessive short-termism, systemic risks, fraud and money laundering issues. Implementation of a risk-oriented approach in the context of combating money laundering and terrorist financing (AML/CFT) by national state supervisory and law enforcement agencies and enterprises involved in activities on the virtual assets market, is a mechanism for preventing threats and developing a legislative framework for regulation crypto market and interaction on these issues at the international level.
Purpose. The aim of the article to work out the theoretical and practical aspects of the functioning and development prospects of the cryptocurrency market in Ukraine in the context of international monetary and credit relations.. Methodology of research. The theoretical and methodological basis of the research is the fundamental provisions of modern economic theory, scientific works of scientists. General scientific and special methods were used in the research process, in particular: dialectical, monographic and systemic analysis – to substantiate the essence of the cryptocurrency market; analysis and synthesis – for studying the object and subject of research; comparative analysis – to compare economic indicators in time and space; graphic – with a visual representation of the dynamics and structural changes of the cryptocurrency market; constructive and experimental – to form a decision with the help of analytical support; abstract and logical – during the formation of theoretical generalizations, assumptions, conclusions. Findings. The peculiarities of the development of the cryptocurrency market in Ukraine as a component of the financial market are considered. Ukraine's place in the Global Cryptocurrency Adoption Index has been studied and analysed. Originality. It has been proven that there is correlation dependence between the prices of Bitcoin and Ether cryptocurrency coins on the Ukrainian cryptocurrency market, and there is no multicollinearity between Ether and Litecoin coins. It was found that the correlation between cryptocurrency mining and their price is average. Prospective directions for the development of the cryptocurrency market in Ukraine are offered. Practical value. The main results of the conducted research will create favourable conditions for a better understanding of cryptocurrency as a new type of money, which will make it possible to use it more widely in the economic activities of economic entities and countries. Key words: financial market, cryptocurrency market, cryptocurrency, crypto coin, cryptocurrency coin, Bitcoin address, Bitcoin, Ether, Litecoin.
Today, in the world and in Ukraine, in particular, along with fiat money, there are cryptocurrencies in circulation. One type of cryptocurrency is non-fungible tokens (NFT). NFT is a type of digital asset created on the blockchain basis, which allows you to obtain ownership of a product that exists exclusively on the network (images, videos, animations). NFT opens up new opportunities for intellectual property objects. The purpose of the article is to research the theoretical foundations of cryptocurrency accounting, in particular one of its types, non non-fungible token (NFT). NFT framework is the ERC-721 (Ethereum Request for Comments 721) standard for issuing and trading non-fungible assets. The creation of legislative norms to regulate relations related to cryptocurrencies has just begun in Ukraine. The Law "On Virtual Assets" was adopted in Ukraine, but it has not entered into force. Accounting issues remain unsettled due to the lack of a regulatory framework.
The cryptocurrency market is rapidly gaining momentum and is becoming an alternative financial platform to the traditional financial trading market. Currently, cryptocurrency is of particular interest to criminals to make illegal profits, such as money laundering, terrorist financing, financing the proliferation of weapons of mass destruction, corruption. The main purpose of the study is to identify information signs that indicate the implementation of illegal financial transactions using cryptocurrencies. Empirical (observation, description) and theoretical (grouping, synthesis, abstraction) research methods were used for this research. According to the results of the study, it is established that the signs of illegal transactions with cryptocurrency are: non-transparent cryptocurrency contracts; encrypted cryptocurrency transactions; impersonal transactions; fragmented systematic transactions into marginal, limited amounts to avoid identification; transactions that do not comply with the approved transaction protocols; currency exchange transactions by unidentified traders; confusing cryptocurrency to other forms of electronic funds in order to withdraw such funds in cash. The authors of the article identify the main agents in the cryptocurrency economy (centralized and decentralized cryptocurrency exchanges, token issuers, distribution services, gaming services, cryptocurrency wallets). The paper describes software products for the identification of illegal cryptocurrency transactions. The results of the study are of practical value to national regulators in strengthening financial stability and combating illegal financial transactions. management of financial institutions to improve the system of counteraction to illegal financial transactions using payment cards, namely the creation of separate bodies for analysis and regulation of fraud in the banking sector, strengthening responsibility for fraud at the legislative level, establishing a single authentication standard for customers, development of open banking.
Introduction. Dynamic changes in the geo-economic and geopolitical spaces associated with the global financial crisis of 2008-2009, the coronavirus pandemic and the Russian-Ukrainian war have led to the accelerated development of fintech, in particular the emergence of cryptocurrencies. Problem. The high probability of widespread use of cryptocurrencies as a means of payment, circulation and investment with particular urgency raises questions about their regulation at the state and international levels. Purpose: an in-depth analysis of the strengths and weaknesses of cryptocurrencies in terms of their regulation within the respective models. The presentation of the material of the article. Cryptocurrencies (bitcoin and others), while not related to fiat money, still have a number of strengths, in particular, such as decentralized character. At the same time, they have many weaknesses, namely, the imperfection of blockchain technology; significant energy consumption of mining; high volatility; the presence of "bad actors" associated with laundering "dirty money"; displacement of national currencies. It is for their neutralization that the regulatory mechanism should be used. Currently, five models of cryptocurrency regulation have been clearly outlined: repressive, which implies a complete ban (Bolivia, etc.); conservative - allows them to buy and sell only to individuals (China); liberal - provides for most operations of their circulation (EU, Ukraine, USA, etc.); legal circulation (Switzerland, Japan, etc.); permitting, under which bitcoin is recognized as a legitimate means of payment (El Salvador). The formation of cryptocurrency regulation models is influenced by the actions of world and national regulators, international payment systems and stock markets.Results and its discussion. Conclusions. Despite significant restrictions, the global volume of cryptocurrency transactions is growing rapidly. Ukraine's cryptocurrency use index, including for the defense of the country, is one of the world leaders.
Abstract. The article examines integration of cryptocurrencies as electronic payment systems in e-commerce enterprises. Practical usage of Ethereum and Bitcoin cryptocurrencies as electronic payment systems, as well as factors that may affect their functionality are studied. Coinbase Commerce and Bitpay, as market leaders in cryptocurrency payment providers, were analyzed to compare integration issues and commission analysis with traditional payment systems LiqPay, PayPal. It is determined that the factors influencing the integration of cryptocurrencies in the enterprise include the field in which this enterprise is operating, instability of the national currency, development of information technology. It has been proven that e-commerce companies specializing on selling consumer goods could use hybrid cryptocurrency payments in Bitcoin in 50% of transactions and Ethereum in 65% of transactions in the studied timeframe to reduce the cost of the transaction compared to the LiqPay system. Key words: electronic payment systems, cryptocurrency, e-commerce, transactions. JEL Classification D2, C50, G23, G41 Formulas: 0; fig.: 9; tabl.: 2; bibl.: 16.
Introduction. It is extremely important to improve the management of territorial development and to determine the priorities of state regional policy and to harmonize national, regional and local interests. At the present stage, the institutional support for the development of territories is characterized by the slowness of state measures to implement reforms, the inconsistency of regional and local development and «point» bills. Therefore, today there is an urgent need to explore the essence of institutional imbalances and their impact on the management of territorial development.Purpose of the research. Research of defining features of the development of territories, the characteristics of the evolutionary transformations of the state regional policy of Ukraine and the definition of institutional imbalances in the modern management model and their impact on the development of territories.Research methods. To achieve this goal, the following research methods were used: system analysis, systematization, generalization - to identify signs of development of territories; chronological - to study the peculiarities of the evolutionary transformations of the state regional policy of Ukraine; institutional analysis - to determine the impact of institutional imbalances on the development of territories.Results. The signs of the development of territories are highlighted, namely: the impact of the development of territories on the national economy as a whole; rational use of various territorial resources through effective institutional mechanisms and management tools; development is always associated with the spatial organization of the territory; the real development of territories is based on partnership relations between public authorities, business representatives and the public. The features of evolutionary transformations and the current state and specificity of the state regional policy of Ukraine are investigated: from smoothing disproportions in regional development and solving point chronic problems to socio-economic cohesion and unity of the country and sustainable growth in the quality of human life, regardless of where he was born, where he lives now and where he will live in the future. It has been proved that decentralization is primarily due to the declared state regional policy, which determines the scale and pace of reforms, and that the relationship between decentralization and the development of territories is ambiguous, since in the context of the new state regional policy, the problems of institutional support for managing the development of territories lead to a number of contradictions and imbalances. , namely: the formation of a hierarchical system of regional and local authorities has not been completed; low involvement of state authorities and local self-government bodies at the district and regional level in the processes of organizing cooperation between territorial communities; lack of a full-fledged system for monitoring the impact of reforms on the development of territories; inadequate participation in the territorial development management model of the Regional Development Agencies; the development of territories requires not only their effective functioning, but also ensuring economic security. It has been determined that the development of territories requires both the effectiveness of measures of state regional policy and the development of local authorities, since the decentralization reform itself will be perceived as an expansion of the powers of local authorities, and therefore the ability of local residents to develop, finance and implement local policy.Perspectives. In the conditions of realization of the new state regional policy the prospects of further scientific researches are directions of improvement of institutional maintenance of management of development of territories.
The article examines the trends of rapid development of blockchain technology. Approaches to interpretation of the concept of "blockchain" in the works of domestic and foreign scientists are revealed. The principles which the development of blockchain technology is based on are determined. Examples of use of blockchain technology applications with class grouping are studied. Examples of application of blockchain technology in such areas as finance, international trade, smart cities, banking are given. The current state of development, opportunities for implementation and features of legal regulation of blockchain technology in Ukraine are described. The advantages and disadvantages of blockchain technologies are highlighted. The further directions of blockchain technology development are analyzed according to such scenarios as centralized programs are replaced by decentralized ones, development of programs for financial inclusion, increase of efficiency of international digital transactions, blockchain turns into "new Internet".
The article describes the Bitcoin cryptocurrency generation system. The use of blockchain technology and encryption algorithm SHA-256 in the Bitcoin generation system is considered. The aim of the work is to research the technologies and value of cryptocurrency. The article describes the structure of Bitcoin and blockchain -the technology that underlies this cryptocurrency. An analysis of existing problems with Bitcoin and its future is presented.
The purpose of the study is to offer a scientific vision of the essence of digital goods and recommendations for its reflection in Ukrainian legal regulation based on the study of scientific publications of researchers of digital goods and existing normative acts regulating the processes of their production and circulation. The article brings forward arguments to support the opinion that «virtual assets», «digital assets» and «crypto assets» are not good names for goods operating on the basis of distributed ledger technology, since such a name is not scientifically based and does not reflect the essence of these objects. From the point of view of economic science, it is more expedient to use the name «crypto goods», which reflects both the commodity essence of these objects and their external technological form, formed on the basis of cryptography and a distributed ledger. According to their functional role, among crypto goods can be distinguished articles related to money, investment goods, personal consumption items, and means of production. It is determined that regulators chose such names, guided not by scientific, but political expediency, as they try to prevent competition on the part of monetary crypto goods for the sake of the monopoly of issuing public money by central banks. Simultaneously, the economic essence of crypto goods in general forces the relevant institutions to be appointed directly responsible for the regulation of certain crypto goods. For example, monetary crypto goods are regulated by central banks, and investment crypto goods are regulated by bodies that are usually engaged in the regulation of the securities market. The philosophy of regulation is aimed primarily at legally making all crypto goods either investment or consumer goods. Monetary crypto goods is only viewed as digital currencies of central banks. A promising direction of research in this area may be the analysis of the consequences of the spread of the production of crypto goods, especially in metaverses, for national economies and for business.
Every year, the cryptocurrency is more active in the global financial market, offering users more convenient and cheaper terms of payment. In addition, it allows you to receive financial income, makes it more and more competitive in the electronic money market. Over the past decade, it is cryptocurrency that has provided the largest 463 increase in the value of assets and the number of services for the population and business. Accordingly, both accounting and auditing are obliged to meet the challenges of the modern economy. The use of cryptocurrency primarily influences the choice of audit procedures. Since, along with traditional audit procedures, it is important to apply new methods to reduce the risks of inaccurate currency valuation and identify possible fraud. The procedures, along with the validation of reporting figures, should ensure that the business is held accountable to the public for the veracity of transactions. While this is more like cybersecurity, its assessment should also be a major part of the expert audit process. Our study summarized the theory and practice of auditing cryptocurrencytransactions, analyzed the main procedures and proposed our own audit sequence in accordance with the International Standards for Quality Control, Auditing, Reviews, and other assignments. Auditors do not assess the state of cybersecurity, however, they use information, the veracity of which is associated with the risks of unauthorized access to IT systems and data. Therefore, for a cryptocurrency, the state and assessment of the IT system of an enterprise has a direct impact on the indicators of financial statements.
This research revealed the essence of digitalization in the field of local finances of Ukraine as a mechanism for the democratization of public administration and determined the features of its practical support. The research was carried out with the help of modern theoretical and cognitive methods, the dialectics of the processes of state administration and local self-government under the conditions of financial decentralization and digitalization. The purpose of the conducted research is the scientific and theoretical justification of the development of digitalization in the field of local finances of Ukraine as a mechanism for the democratization of public administration and the development of practical recommendations for their improvement. Practical implication. The main aspects of the development of digitalization and the expansion of access of the territorial community to the process of managing local finances in the conditions of decentralization of power have been studied. The current state of digitization of local finance management is analyzed from the point of view of filling electronic platforms and programs with hardware capabilities. The directions and necessary conditions for improving the efficiency of local finance management by all members of the territorial community using the digitization mechanism have been determined. Value/originality. Developed the mechanism of financial decentralization using digitization tools, which is accompanied by appropriate software and hardware, characterized by the complex application of modern information and communication technologies, which significantly increases the efficiency and effectiveness of the implementation of local financial programs, the quality of control over expenses, the filling of local budgets. It was concluded that the digitization mechanism in the field of local finances introduces an important trend – the transition from public control to public initiative. The expansion of forms of electronic democracy with the help of technological capabilities significantly expands the community’s access to public administration services in real time, which increases the rationality of using local financial resources. By its content, this is a way of practical implementation of participatory democracy in Ukraine.
The work examines the main trends in the functioning of the domestic IT sector and the formation and development of digital infrastructure. The main directions of the digital transformation of the national economy include support and stimulation of the development of the IT sector, development of the national digital infrastructure, expansion of the scale of digitization of business, state administration, social sphere and livelihood of the population, as well as the development of digital skills and digital culture of citizens in order to overcome the “digital divide”. It has been proven that digital infrastructure should be considered as an interconnected set of technical and technological means, software, services and processes that ensure the use of IR technologies in all sectors of the economy and spheres of social life. According to the performed functions and tasks, two types of digital infrastructure are distinguished – technical-technological and software-service, which, constantly developing and becoming more complicated, support and complement each other. It was determined that the main criteria for assessing the level of development of digital infrastructure should be compliance with technical, technological, ethical and regulatory standards, systematicity, complexity, transparency, controllability, legitimacy and inclusiveness. The need to ensure effective state regulation, supervision and control over the functioning of the national digital infrastructure as a component of the state’s digital sovereignty has been proven. It was determined that the development of the national digital infrastructure should become a strategic priority of the state, and its main objects should be broadband Internet, 5G mobile communication, the infrastructure of the Internet of Things and cyber security, as well as “Industry 4.0”. It has been proven that in order to combine centralized and decentralized management mechanisms for the processes of formation and development of digital infrastructure, it is necessary to use a system approach that ensures a high level of functionality of all technical and technological components of digital infrastructure, programs and services. The main principles of the introduction and use of the “Industry 4.0” technology and promising sectors of the domestic economy for its implementation are determined. The potential sources and forms of financing the development of the IT sector and the development of IR technologies are characterized.
Introduction. Economic development of Ukraine in the third decade of the 21st century largely depends on the development of digital technologies, on which the cryptocurrency business directly depends. According to the Index proposed by chainalysis.com, Ukraine is one of the leaders in the world and the undisputed leader in Europe in the adoption of cryptocurrencies. This became possible thanks to the active development of financial and information technologies in Ukraine, and the financial, economic and military-political crises only give additional impetus to the development of the cryptocurrency business due to its global nature and full or indirect independence from attempts at state regulation. One of the areas of cryptocurrency business development is cryptocurrency mining. The purpose of the article is to reveal the algorithm of conducting business in the field of cryptocurrency mining and the economic efficiency of mining in Ukraine and the possibility of its impact on economic growth in the country. Results. Cryptocurrency mining is the process of creating cryptocurrency coins. It has been investigated that the cryptocurrency mining process is not a financial pyramid or some kind of virtual game, but is one of the newest types of business activity, which requires significant theoretical and practical economic and technical knowledge, is economically expedient both in the short and long term. When mining, you can use a variety of computer equipment, depending on the miner’s economic tasks and desired results. ASIC equipment has been developed for mining on an industrial scale. Cloud mining is used for investing. If there is no knowledge about mining and limited financial resources, you should use browser mining or mine on your own PC, laptop or smartphone. However, the most efficient and widespread mining takes place on video cards. It was found to be a by-product of mining. It is estimated that there is a slight correlation between the earnings of miners on the Ethermine mining pool and the daily mining profit. Conclusions. Although the history of cryptocurrency business is only one and a half decades, mining, as an object of business activity in Ukraine, is a significant economically effective type of business activity, which is noted in the world rating of the perception of cryptocurrencies, according to which Ukraine is one of the world leaders. Attempts to implement legal regulation of cryptocurrency mining both in Ukraine and in other countries, and its gradual implementation do not significantly harm the creation, distribution and use of cryptocurrency coins, however, will create transformed conditions for the economic attractiveness of cryptocurrency mining as business objects.
The paper aims to study some aspects of the legal regulation of relations with cryptocurrency in Ukraine and the EU and suggest improvements for Ukrainian legislation on virtual assets.
The article is to research the possibilities and prospects of using graphical technical analysis for forecasting the movement of asset prices by an Internet trader using the example of Bitcoin (BTC – BitCoin). The theoretical and methodological aspects of cryptocurrency technical analysis in the conditions of modern financial markets were analyzed. A comparative analysis of short- and medium-term technical analysis strategies in Internet trading was carried out. Cryptocurrency-applied technical analysis was used to determine current trends of the Bitcoin growth cycle. The research methods included comparative analysis, and graphical and analytical methods of technical analysis such as the method of observing price movement, capitalization analysis, pattern identification, support/resistance levels identification, indicators use and comparison, and bars analysis (Japanese candles). Cryptocurrency analysis used the Traidingview platform data from BINANCE, BITSTAMP and CRYPTOCAP exchanges. Considering the example of the analysis of the medium-term agreement with patterns and indicators of the BTC instrument, the most likely movement of the asset price is calculated in several stages. In the first stage, the classification of analysis tools and the possibility of applying several of them were investigated. The second stage involved analyzing the difference and risk of using different time frames for investment and finding rational ways of applying the available information to analyze the subsequent deal. In the third stage, a comparative analysis of the transaction with the BTC instrument was carried out, and the likely movement of the cryptocurrency price was determined. Based on the research, the only possible scenario for the behavior of the BTC instrument has been developed, namely: a drop in price and accumulation in the further bearish market. It is substantiated that the best option for analysis is the collection of all available information from the chart and its further analytical summation to obtain the most likely trend of the instrument's movement, as well as the analysis of the speculative value of the deal. The considered approaches to the technical analysis of the Bitcoin cycle create a scientifically based practical tool for Internet trading.
The author analyzes the existing legal regulation of relations related to the use, issuance, trade and other operations with cryptocurrencies in the European Union law. It was noted that the development of cryptocurrency markets in the EU requires a well-built legal framework clearly defining the regulation regime for all cryptocurrencies that are not subject to current legislation on financial services. The main directions of regulatory influence on the cryptocurrency market in some EU Member States are identified. The problems of the system of legal acts covering legal relations with cryptocurrencies are analyzed. It was stated that creating a high-quality and effective legal framework within the EU internal market is an extremely important though challenging task. Perspective directions of legal regulation of crypto-assets according to the Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937, COM/2020/593 final, are analyzed. When analyzing the draft Regulation, it was found that its adoption would be an important step towards maximum harmonization of cryptocurrency legislation. A number of problems of the future legal act have been revealed. These include ambiguous legal regulation of cryptocurrency market participants’ cybersecurity. In addition, the legislative bodies should bear in mind that cryptocurrencies are in the process of constant transformation and transition from one type of token to another. In this case, the rules of the upcoming Regulation should be more flexible to future changes. It was concluded that according to the current draft Regulation, it is extremely unlikely that any types of crypto-assets will remain unregulated in the EU.
Сергій Михайлович Фролов, Volodymyr Orlov, Regional State Administration, Yevhenii Kozmenko
The paper notes that at the present stage, research primarily by foreign scientists defines decentralized finance as based on the cryptocurrency ecosystem. The development of new financial technologies, which led to the emergence of digital currency, and its attractiveness, primarily as an asset for investment, have already formed a certain ecosystem of cryptocurrencies. In particular, the functioning of crypto-exchanges, which include various participants: issuers providing mining, agents and a kind of intermediaries in cryptocurrency transactions during the circulation of stablecoins. The dynamics of market capitalization of cryptoassets was analyzed according to the statistics of the International Monetary Fund (IMF), which increased more than 10.5 times (from USD 191.6 bln at the beginning of 2020 to USD 2,027.5 bln as of the end of September 2021). At the same time, it should be noted that the structure of the cryptocurrency market is unstable, which is typical for the new market that is in its infancy. This is confirmed by the market capitalization structure of bitcoin, ethereum, and stablecoins for the above period. Based on IMF data, indicators characterizing the state of formation of the cryptocurrency ecosystem, namely, bitcoin volatility and market capitalization of tokens, are analyzed. It is noted that the fairly rapid spread in the global financial space, and especially the growing attractiveness of cryptocurrencies in emerging financial markets, require the study of possible risks, arising from the formation of an ecosystem of cryptocurrencies and decentralized finance to ensure the stability of the centralized financial system. The main financial stability risks associated with the cryptocurrency ecosystem are systematized and grouped into key blocks: operational risk, cyber risk, misappropriation, bribery and corruption, as well as risks related to financial imbalances. The emphasis is on a problem that is formed purely in the field of decentralized finance and is associated with the development of peer-to-peer lending, crowdfunding and crowdinvesting. A generalization is made about the understanding of the ecosystem in the financial system (financial ecosystem), which is used in modern research at two levels: at the micro level it reflects the business model of a financial institution, and at the macro level it reflects the transformation of the financial system under the influence of financial technology. The formation of the financial ecosystem was the result of the intensive development of financial technologies (FinTech), among which neobanks are the most popular today. In addition, a classification of neobanks is proposed with an emphasis on the level of digitalization.