The article examines key trends in the development of digital currencies in the context of the transformation of the global financial system. Based on a comparative analysis, central bank-controlled central digital currencies (CBDCs) and decentralized cryptocurrencies, primarily Bitcoin, are considered as alternative models of digital money. The fundamental differences between them are identified in terms of issuance mechanisms, level of regulatory support, degree of transparency and application of blockchain technologies.
Open access
Security, Politics, and Digital Transformation
Blockchain Technology Applications and Security
Economic, Social, and Public Health Issues in Russia and Globally
The article examines the definition of «cryptocurrency,» its legal status, and prospects for regulation in Ukraine. The authors analyze contemporary approaches to understanding cryptocurrency as a digital asset, considering it either as a new form of money or as an object of civil rights. Particular attention is paid to the provisions of the Law of Ukraine «On Virtual Assets,» adopted on February 17, 2022, and its significance in creating the legal foundation for cryptocurrency market regulation. However, it is emphasized that this law has not yet come into force due to the absence of corresponding amendments to tax legislation, complicating the legalization of cryptocurrency transactions. The distinction between «virtual assets» and «cryptocurrencies» is discussed, highlighting key limitations of existing legislation, particularly the prohibition on using virtual assets as a payment method in Ukraine. The article outlines issues such as the lack of a transparent regulatory environment and a taxation system, which hinder the development of the cryptocurrency market, reduce its investment appeal, and create risks for market participants. The article also analyzes international cryptocurrency regulation experiences, particularly in the United States, Canada, Japan, and the European Union. Special attention is devoted to the European regulation Markets in Crypto Assets (MiCA), which could serve as a foundation for developing a unified regulatory framework in Ukraine. The authors stress the importance of harmonizing Ukrainian legislation with European standards within the framework of European integration. The potential benefits of cryptocurrency legalization are highlighted, including attracting foreign investments, developing financial technologies, reducing the shadow economy, strengthening consumer protection, and creating new markets. Specific recommendations are provided to improve legislation, such as implementing transparent regulatory mechanisms, taxation, investor protection, and ensuring cybersecurity. This article is a significant contribution to the study of the prospects for the development of the cryptocurrency market in Ukraine, outlining the challenges and opportunities for integrating Ukraine’s financial system into the international space through the adoption of MiCA standards.
The article is devoted to the study of the features of smart contracts, which are a type of electronic contracts. Smart contracts, which are also called “smart contracts” (origin of the word “smart contract”), correspond to modern trends in digitalization and provide an effective mechanism for the implementation of business, financial and economic relations in a virtual environment. The following methods were used in the study: general logical, method of analysis and synthesis, formal-legal, comparative-legal, systemic. When comparing the so-called “technological” and legal approaches to understanding the concept of “smart contract”, the views of different groups of foreign and domestic scientists and researchers on the interpretation of this concept were analyzed. The principle of operation of a smart contract is considered on a specific example, while the way in which a smart contract operates in certain specific conditions is studied in detail and possible reasons for its failure to perform are analyzed. When analyzing the operation of smart contracts, their practical, technical, legislative problems and features were identified. Thus, the feature of immutability of a smart contract is its advantage because it excludes the intervention of the human factor. But the immutability of a smart contract is also its disadvantage because it makes it impossible to conclude additional agreements to a smart contract when certain circumstances change. Taking into account the study of the properties of a smart contract and an example of its operation, it can be stated that a smart contract can function only in a certain environment provided that the executable program code has direct and unlimited access to the objects of the smart contract. This creates integration problems of a smart contract with the objects of its operation. Thus, if the subject of a smart contract is real estate and in this regard the specified electronic contract requires notarial electronic certification and corresponding registration in the digital environment, then today in Ukraine there is an integration problem of electronic notarial certification of such contracts due to the absence and legislative uncertainty of the mechanism of electronic notarial certification and registration. Also relevant is the problem of smart contracts regarding payments under them in cryptocurrency, which also requires a legislative solution, since the legal status of cryptocurrency in Ukraine has not yet been established. Solving these problems in the future will allow for the wider use of smart contracts by their Ukrainian counterparties.
The subject of the study is the main theoretical approaches to understanding the nature and functional role of smart contracts developed in the Russian civil doctrine. The object of the study is public relations in the field of using smart contracts as a means of regulating the turnover of copyright objects. The author raises the actual problem of using smart contracts in the field of copyright protection. The relevance of the issue is due to the widespread technological innovations in the field of intellectual property turnover, which requires the state to develop new solutions in the field of legal policy. The use of smart contracts is a promising technological solution that can ensure the effectiveness of protecting the interests of copyright subjects. Special attention is paid to certain aspects of the operation of smart contracts (their modification, termination) within the framework of the turnover of rights to copyright objects. The research methodology involves the use of structural and functional analysis tools, a method of interpreting legal ideas and a systematic approach, on the basis of which the article attempts to identify the functional significance of smart contracts as a technological and legal phenomenon in the sphere of turnover of copyright objects. The use of smart contracts is an innovative approach that contributes to the improvement of document management in Russian copyright law. The main conclusions of the author are the statement of the limited nature of the use of smart contracts in the framework of copyright protection of the results of intellectual activity. The author's contribution to the disclosure of the research topic is determined by the identification of differences between smart contracts and classical means of regulating contractual relations. Based on the conducted research, the author suggests ways to improve the legislative policy of the state, related to the lack of an orderly system of civil law norms governing relations in the field of smart contracts as tools for ensuring the registration of copyright objects and the fulfillment of private law obligations. The author substantiates the need to develop the provisions of civil legislation in terms of expanding legal structures capable of ensuring the fulfillment of agreements reached between the parties to a private law relationship.
Krypto-Assets sind mit der zunehmenden Beliebtheit von Kryptowährungen ein verbreitetes Anlageprodukt geworden. Das Ziel der Arbeit besteht darin, das Konzept der Blockchain mit entsprechender technischer Umsetzung zu erläutern, die Investitionseigenschaften anhand einer Analyse aufzuzeigen und die Auseinandersetzung mit häufigen Kritikpunkten. Die empirisch‑quantitative gewonnenen Daten liefern im Betrachtungszeitraum von 01.02.2018 bis 31.01.2025 folgende Erkenntnisse: Kursentwicklung: Bitcoin (1010%) weist die höchste Performance auf und übertrifft damit Ethereum (211%) um das Fünffache, den S&P 500 (114%) um das Neunfache. Tether (2%) fokussiert keine Rendite, sondern Stabilität, dient daher nur als Referenz. Volatilität: Ethereum (1.9) hat den höchsten Spitzenwert für die rollierende Volatilität im 30-Tage-Fenster, gefolgt von Bitcoin (1.5). Einem vergleichbaren Bewegungsmuster folgen der S&P 500 (0.85) und Tether (0.15) und finden ihre Extremstelle ebenso im ersten Halbjahr 2020. Die deutlich geringere Schwankungsanfälligkeit des S&P 500s ist auf die höhere Diversifizierung durch die dahinterstehenden Wertpapiere zurückzuführen, bei Tether aufgrund der direkten Wertkoppelung an US-Dollar. Rendite-Risiko-Verhältnis: Bitcoin (35%) weist in der jährlichen Betrachtungsform die höchste annualisierte Rendite auf, gefolgt von Ethereum (15%), dem S&P 500 (10%) und Tether (0.003%). Die annualisierte Standardabweichung beschreibt das Risiko und wird von Ethereum (2.11) angeführt, darauffolgend Bitcoin (1.21), der S&P 500 (0.19) und Tether (0.008). Im sich daraus ergebenden Rendite-Risiko-Verhältnis führt der S&P 500 (0.39), danach folgen Bitcoin (0.26), Ethereum (0.04) und Tether (-3.21). Somit liefert der S&P 500 trotz geringerer Performance das beste Verhältnis aus Rendite und Risiko, was auf das deutlich geringere Risiko zurückzuführen ist. Korrelation: Bitcoin und Ethereum haben die höchste Korrelation (0.81), da beide als Kryptowährungen den gleichen Marktbedingungen ausgesetzt sind. Die Differenz zu 1 ist auf Einflüsse zurückzuführen, die das Asset selbst betreffen. Der S&P 500 korreliert leicht mit Ethereum (0.3) und Bitcoin (0.28). Die geringste Korrelation weist Tether auf, im Zusammenhang mit Bitcoin (0.01), dem S&P 500 (0.01) und Ethereum (0.02). Maximum Drawdown: Ethereum (90%) hat den höchsten Verlust im Vergleich zum Höchststand. Darauf, ebenso zu Jahresende 2019, folgt Bitcoin (70%), der S&P 500 (30%) zu Beginn des Jahres 2020 und Tether (5%) Ende 2019. Gesamtbewertung: Statistisch weist Bitcoin im Vergleich zu Ethereum höhere Renditen bei geringerem Risiko auf. Die geringere Korrelation von Bitcoin mit klassischen Anlageprodukten wie dem S&P 500 kann eine Diversifikationsfunktion begründen. Haftungsausschluss: Diese Thesis dient ausschließlich akademischen Zwecken. Trotz größter Sorgfalt bei der Erstellung kann keine Gewähr für die Richtigkeit und Vollständigkeit der enthaltenen Informationen übernommen werden. Der Autor übernimmt keine Haftung für Folgen, die sich aus der Verwendung dieser Arbeit ergeben. Disclaimer: This thesis is intended for academic purposes only. Although care has been taken to ensure the accuracy and completeness of the information, no guarantee is made that it is free of errors or omissions. The author assumes no responsibility for any consequences arising from its use.
This article examines the legal qualification of smart contracts within civil law jurisdictions, emphasizing the challenges posed by automated, code-based agreements in systems traditionally grounded in codified statutes and doctrinal principles. By exploring current scholarly debates, legislative approaches, and judicial interpretations, this study highlights the tension between the self-executing nature of smart contracts and the requirement for consent, formality, and interpretation under civil codes. Drawing on a qualitative analysis of doctrinal writings, statutory frameworks, and case-based discussions, the paper identifies core issues of enforceability, liability, and consumer protection. Results reveal the need for a more coherent integration of legal theory and technological design, underscoring the role of hybrid solutions that blend human interpretation with automated execution. The discussion situates these findings in the broader trajectory of contract law modernization, concluding with recommendations for policymakers and practitioners regarding risk mitigation, technological design improvements, and harmonized regulatory standards.
Ahmad Anwar Zainuddin, Farah Mazlan, Nur Faizah Omar, Nik Nor Muhammad Saifudin Nik Mohd Kamal
Most conventional contract systems have issues with middlemen, drawn-out implementation procedures, fraud risk, and human error. Considering this, the project uses smart contract technology to provide a decentralized, automated, and safe solution in an effort to address such inefficiencies and the trust issues they raise. Smart contracts enable self-execution of contracts whose conditions are expressed explicitly in lines of code by presenting solutions using blockchain technology. The concept behind a smart contract is that each party may carry out their portion of the duties without depending on a third party and the contract will automatically execute in the meantime. This automation significantly reduces transaction costs while simultaneously improving security and transparency. With the use of this underlying technology, smart contracts may be used to directly code parties' compliance with their duties under the agreement and the blockchain will keep an immutable record of every transaction. For smooth and dependable transactions, smart contracts offer a dependable and effective substitute for conventional contract methods. Furthermore, integrating smart contracts with cutting-edge technologies like machine learning and artificial intelligence could improve decision-making and accelerate operations in a variety of sectors. Their application extends beyond financial transactions to areas such as supply chain management, energy trading, and healthcare, showcasing their versatility. Despite these advantages, issues like energy consumption, scalability, and regulatory compliance still need creative solutions. Ongoing research and development aim to address these issues, fostering the evolution of smarter, more sustainable contract systems. By leveraging these advancements, smart contracts keep opening the door for a revolution in the digital economy that will increase productivity and confidence.
The subject of the study is the dependencies, trends and key features of the turnover of cryptocurrencies as a separate phenomenon. The purpose of the study is to analyze the key features of the cryptocurrency turnover and the problems of their legal regulation, followed by the development of practical proposals for the prevention of cryptocurrency crime. The objectives of the research are: analysis of modern technologies related to cryptocurrencies; their features and degree of influence on financial markets; problems of prevention and legal regulation of cryptocurrencies in Russia. The object of research is formed by public relations related to the use of cryptocurrencies in the financial market. Cryptocurrencies represent one of the most significant phenomena in financial technology. In the context of globalization and digitalization, they provide new opportunities for transactions, investments and storage of funds. However, the rise of decentralized finance, anonymous wallets, and NFT scams has turned blockchain into a "new shadow" of the global economy. This confirms the importance of developing new techniques and means of preventive activities of law enforcement agencies. The methodological basis of the work is the method of dialectical cognition, thanks to which it was possible to study the object and subject of research in relation to the domestic criminal legislation and other normative legal acts. The theoretical and methodological basis of the research is various logical techniques and means of scientific knowledge, general scientific and private scientific methods: modeling, forecasting, formal legal. The novelty of the study is due to the analysis of modern official statistical data and materials of investigative and judicial practice on the state of cryptocurrency crime in Russia. The study of domestic legal acts in the field of the use of financial assets allowed us to conclude that the status of cryptocurrencies is uncertain. The authors summarize that cryptocurrency crime does not require prohibitions, but a rethinking of law, because it is not technology that poses a threat, but its exploitation in conditions of legal inequality. The main conclusions obtained by the authors relate to determining the financial characteristics of cryptocurrencies, their volatility, liquidity, and risk assessment of use. The trend of increasing demand for the integration of cryptocurrencies into traditional financial systems has been proven. The problems of legal regulation and regulatory consolidation of the concept of "cryptocurrency", including in domestic criminal legislation, are outlined. The main reasons for the spread of cryptocurrency crime and the prospects for preventive activities of investigative authorities based on the capabilities of artificial intelligence have been identified.
The report substantiates that cryptocurrencies are a unique financial phenomenon that continues to evolve and change the global economic landscape. They provide users with new opportunities to conduct financial transactions, increasing speed, transparency and reducing transaction costs. At the same time, their decentralized nature contributes to reducing dependence on traditional financial institutions, which makes cryptocurrencies especially attractive in conditions of economic instability.
Krypto-Assets sind mit der zunehmenden Beliebtheit von Kryptowährungen ein verbreitetes Anlageprodukt geworden. Das Ziel der Arbeit besteht darin, das Konzept der Blockchain mit entsprechender technischer Umsetzung zu erläutern, die Investitionseigenschaften anhand einer Analyse aufzuzeigen und die Auseinandersetzung mit häufigen Kritikpunkten. Die empirisch‑quantitative gewonnenen Daten liefern im Betrachtungszeitraum von 01.02.2018 bis 31.01.2025 folgende Erkenntnisse: Kursentwicklung: Bitcoin (1010%) weist die höchste Performance auf und übertrifft damit Ethereum (211%) um das Fünffache, den S&P 500 (114%) um das Neunfache. Tether (2%) fokussiert keine Rendite, sondern Stabilität, dient daher nur als Referenz. Volatilität: Ethereum (1.9) hat den höchsten Spitzenwert für die rollierende Volatilität im 30-Tage-Fenster, gefolgt von Bitcoin (1.5). Einem vergleichbaren Bewegungsmuster folgen der S&P 500 (0.85) und Tether (0.15) und finden ihre Extremstelle ebenso im ersten Halbjahr 2020. Die deutlich geringere Schwankungsanfälligkeit des S&P 500s ist auf die höhere Diversifizierung durch die dahinterstehenden Wertpapiere zurückzuführen, bei Tether aufgrund der direkten Wertkoppelung an US-Dollar. Rendite-Risiko-Verhältnis: Bitcoin (35%) weist in der jährlichen Betrachtungsform die höchste annualisierte Rendite auf, gefolgt von Ethereum (15%), dem S&P 500 (10%) und Tether (0.003%). Die annualisierte Standardabweichung beschreibt das Risiko und wird von Ethereum (2.11) angeführt, darauffolgend Bitcoin (1.21), der S&P 500 (0.19) und Tether (0.008). Im sich daraus ergebenden Rendite-Risiko-Verhältnis führt der S&P 500 (0.39), danach folgen Bitcoin (0.26), Ethereum (0.04) und Tether (-3.21). Somit liefert der S&P 500 trotz geringerer Performance das beste Verhältnis aus Rendite und Risiko, was auf das deutlich geringere Risiko zurückzuführen ist. Korrelation: Bitcoin und Ethereum haben die höchste Korrelation (0.81), da beide als Kryptowährungen den gleichen Marktbedingungen ausgesetzt sind. Die Differenz zu 1 ist auf Einflüsse zurückzuführen, die das Asset selbst betreffen. Der S&P 500 korreliert leicht mit Ethereum (0.3) und Bitcoin (0.28). Die geringste Korrelation weist Tether auf, im Zusammenhang mit Bitcoin (0.01), dem S&P 500 (0.01) und Ethereum (0.02). Maximum Drawdown: Ethereum (90%) hat den höchsten Verlust im Vergleich zum Höchststand. Darauf, ebenso zu Jahresende 2019, folgt Bitcoin (70%), der S&P 500 (30%) zu Beginn des Jahres 2020 und Tether (5%) Ende 2019. Gesamtbewertung: Statistisch weist Bitcoin im Vergleich zu Ethereum höhere Renditen bei geringerem Risiko auf. Die geringere Korrelation von Bitcoin mit klassischen Anlageprodukten wie dem S&P 500 kann eine Diversifikationsfunktion begründen. Haftungsausschluss: Diese Thesis dient ausschließlich akademischen Zwecken. Trotz größter Sorgfalt bei der Erstellung kann keine Gewähr für die Richtigkeit und Vollständigkeit der enthaltenen Informationen übernommen werden. Der Autor übernimmt keine Haftung für Folgen, die sich aus der Verwendung dieser Arbeit ergeben. Disclaimer: This thesis is intended for academic purposes only. Although care has been taken to ensure the accuracy and completeness of the information, no guarantee is made that it is free of errors or omissions. The author assumes no responsibility for any consequences arising from its use.
Тулаев, Д. А., Голованова, К. А., Tulaev, D., Golovanova, K.
В статье рассматриваются смарт-контракты как инновационный инструмент в финансовой сфере, акцентируя внимание на их необходимости и преимуществах в условиях цифровизации экономики. Автор анализирует функции смарт-контрактов, такие как автоматизация процессов, повышение прозрачности и безопасность транзакций, а также их влияние на сокращение затрат и временных издержек. Исследование базируется на современных примерах использования смарт-контрактов в финансовых услугах и обсуждает потенциальные вызовы и риски, связанные с их распространением. В заключение подчеркивается важность интеграции смарт-контрактов в финансовые экосистемы для повышения эффективности и конкурентоспособности в условиях цифровой трансформации.
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.
The emergence of Central Bank Digital Currencies (CBDCs) has accelerated the digital transformation of monetary systems, yet cross-border interoperability remains fragmented across national and regional implementations. This paper presents a technical model for a multi-CBDC ecosystem designed to enable seamless value exchange between sovereign digital currencies while maintaining compliance, settlement finality and monetary sovereignty. Drawing from comparative analyses of CBDC initiatives in China, the European Union and emerging economies, the proposed model introduces a bridge-layer architecture that supports both wholesale and retail CBDCs through programmable smart contracts, distributed ledger interoperability and standardized messaging protocols.
The rapid expansion of cryptocurrency markets has fundamentally challenged the architecture of traditional tax systems.As digital asset transactions increasingly bypass institutional oversight, national and international tax frameworks remain fragmented, reactive, and insufficient.This paper critically examines the structural, technological, and policy-driven barriers that inhibit global tax systems from effectively regulating cryptocurrency conversions, particularly the transformation of digital assets into fiat currencies.Drawing upon a comparative analysis of tax regimes across the United States, European Union, United Arab Emirates, and Singapore, this study identifies systemic inconsistencies in the classification of crypto assets, the recognition of taxable events, and the enforcement of cross-border reporting standards.The research highlights the growing prevalence of decentralized finance (DeFi) platforms, peer-to-peer exchanges, and privacy-enhancing technologies, which further complicate tax compliance and erode the ability of authorities to trace digital wealth.Using an interdisciplinary framework grounded in regulatory arbitrage theory and institutional economics, the paper explores the interplay between policy inertia, technological complexity, and jurisdictional competition.It critically assesses the limitations of emerging efforts such as the OECD's Crypto-Asset Reporting Framework (CARF) and FATF's Travel Rule, arguing that without coordinated global standards, crypto tax evasion will persist through legal voids and regulatory arbitrage.The study concludes with a set of policy imperatives for achieving equitable, technologically feasible, and internationally harmonized approaches to digital asset taxation-ensuring tax integrity without stifling innovation or violating digital privacy rights.
This thesis consists of three essays that provide a comprehensive exploration of the cryptocurrency market, addressing significant gaps in the literature through a systematic review and empirical investigations into the asset pricing process.The first essay systematically reviews 2,098 cryptocurrency publications in finance, identifying three primary research streams: features of cryptocurrencies, market behaviour, and blockchain implications. It synthesises diverse findings, resolves contradictions, and maps future research directions. Additionally, it highlights two critical research topics that form the foundation for the subsequent essays.The second essay examines the impact of economic shocks on cryptocurrency asset pricing. The results show that incorporating sensitivities to unexpected changes in economic variables, such as global stock market returns, financial stress, and inflation expectations, significantly enhances the explanatory power of asset pricing models in explaining both time-series returns and cross-sectional expected returns. Furthermore, the sensitivities to economic shocks yield substantial abnormal returns over the long run, suggesting the presence of economic risk premia within the cryptocurrency market. For example, cryptocurrencies with higher sensitivities to global stock market shocks and inflation expectations outperform their counterparts by average weekly returns of 0.48% and 0.49%, respectively. Similarly, cryptocurrencies more vulnerable to spikes in fear sentiment and financial stress deliver long-run outperformance of 0.47% and 0.44% per week, compared with the more resilient coins.The third essay investigates the time variation of factor premia in the cryptocurrency market, focusing on six categories of long-short factors, including size, momentum, liquidity, volatility, psychological, and economic sensitivities. The essay explores the influence of behavioural finance variables, economic and financial indicators, and cryptocurrency market state variables on factor returns. The findings reveal substantial time variation in cryptocurrency factor returns, shaped by three pivotal mechanisms: behavioural finance-driven mispricing, investor behaviour amid different market states, and fundamental forces from economic and financial conditions. For example, heightened fear sentiment enhances the performance of larger and more liquid cryptocurrencies, while bullish market conditions amplify returns for lottery-like assets. This research extends traditional asset pricing models to the cryptocurrency market, offering novel insights into the predictability of factor premia and providing practical implications for investors navigating this dynamic and volatile market.
The rapid development of the cryptocurrency market forces states around the world to look for effective mechanisms for legal regulation of this new financial reality. In addition, Russian citizens are active users of online platforms that trade cryptocurrencies. Thus, the urgent task of the Russian Federation at the present stage of its development is to find the optimal cryptocurrencies legal regulation. Purpose: to analyse trends and prospects of cryptocurrencies legal regulation, including various approaches to legal regulation, counting abroad. Methods: comparative analysis of the legal regulation of cryptocurrencies in various jurisdictions, as well as a study of technological solutions used abroad. Results: the study made it possible to analyse legislative initiatives regarding cryptocurrencies, from a liberal approach to a complete ban. It also reflected the need to maintain a difficult balance between the desire to protect investors, fight crime, and encourage innovation in the digital economy.
The article discusses the legal regulation of operations with cryptocurrency, which functions with the help of blockchain technology. It has been determined that blockchain technology will not only revolutionize financial spheres, but also has the potential to change approaches to data management, cybersecurity, logistics, medicine and other industries. Based on the principles of decentralization and security, it opens up new opportunities for optimizing business processes and ensuring transparency in other sectors of society. Purpose. It consists in an in-depth study of the essence of cryptocurrencies through the analysis of international experience regarding their legal regulation. In addition, the work is aimed at the development of specific proposals and prospects for the further development of the legal regulation of cryptocurrencies in Ukraine. Scientific novelty. It is noted that the development and expansion of the use of blockchain technology in Ukraine indicate a rapid process of adaptation to the digital age and define the country as a promising participant in the global innovation movement. It has been proven that outside of the financial sector, blockchain technology can serve as an effective tool for voting platforms and document and title management, which can contribute to improving the processes of democracy and administration. It is noted that Ukraine, being a supporter of digital innovations, is already implementing blockchain in public spheres, such as SETAM and the state land cadastre. However, the main application of blockchain in Ukraine in the public sphere is currently the cryptocurrency market, which is currently regulated by the Law of Ukraine "On Virtual Assets". Methods and methodology. In the course of the research, such methods as analysis and synthesis, methods of historical and logical modeling were used. Theoretical approaches were also applied, in particular the method of formalization and the method "from abstract to concrete". Results. In the proposed article, special attention is paid to the analysis of aspects of the practical application of the legal mechanism of the cryptocurrency market. Conclusions. The national legislation on the regulation of the cryptocurrency market in Ukraine needs improvement. This may include implementing a taxation system for cryptocurrency and defining a clear legal status for this type of digital asset. It is also important to determine the algorithm of actions for transactions with cryptocurrencies and establish transparent rules for their regulation. The creation of dedicated regulatory bodies that specialize in digital currency matters could contribute to more effective oversight of the industry. These authorities may be responsible for advising users, issuing licenses and controlling processes related to the use of cryptocurrencies, including money laundering prevention.
Purpose : This paper explores the emerging role of cryptocurrencies as a distinct asset class within the financial landscape. As digital currencies gain traction among investors and institutions, it becomes essential to analyze their unique characteristics, volatility, and potential for diversification compared to traditional asset classes such as stocks and bonds. The study examines the historical evolution of cryptocurrencies, their investment potential, and the impact of regulatory frameworks on market dynamics. Additionally, it investigates the increasing adoption of cryptocurrencies by institutional investors and the challenges they face, including market volatility and security risks. Ultimately, this research aims to provide a comprehensive understanding of cryptocurrencies as a legitimate asset class and their implications for future investment strategies.
Blockchain technology, a revolutionary innovation built on the principles of distributed ledgers and consensus algorithms, has been the driving force behind the meteoric rise of cryptocurrencies.What was once considered a niche concept has now become an integral part of the global economic fabric, captivating the attention of investors, institutions, and policymakers alike.However, their unique nature challenges traditional accounting frameworks.This paper reviews the domestic and international research on the accounting treatment of cryptocurrencies.Globally, the accounting recognition of cryptocurrencies varies.They are often classified as financial assets or intangible assets depending on their usage.Measurement models, such as the historical cost method, fair value method, and intangible asset revaluation model, all have their own advantages and disadvantages.Currently, the information disclosure regarding cryptocurrencies is fragmented, lacking a unified standard.To tackle these issues, future research should focus on leveraging the distributed ledger technology of blockchain to enhance accounting transparency and establish consistent information disclosure norms.This will improve the quality of financial reports, support informed decision-making, and promote the standardization of cryptocurrency accounting.