The aim of this study is to realize an analysis of cryptocurrencies in Albania. Cryptocurrencies have experienced tremendous changes in the last years, and have often been the subject of debates. Albania is one of the countries in which seems really difficult to have the opportunity of using cryptocurrencies as a payment tool, or as an investment alternative. Throughout this investigation, we will treat some of the main difficulties and challenges of the cryptocurrency market in Albania. As the study reveals, it seems that it has not been easy for Albanian investors to use cryptocurrency as an investment alternative, or use cryptocurrency as a payment tool. Anyway, what we can emphasize is the fact that we can see some positive steps in this direction. Even though it seems a slow process, the removal of some legal restrictions related to cryptocurrencies reflects the “break” of the “walls” that were serving as a barrier for them in Albania. Only the future can show this, so the only thing that we can do is to wait for it
Introduction. The digitalization of the economy is closely linked to the formation of an effective legal framework. Any development or operation of digital instruments must be accompanied by appropriate financial and legal regulation. The study of the functioning of digital financial assets allowed us to conclude that, unfortunately, their rapid development is observed against the background of the lag of regulatory regulation of the relevant legal relations that are formed as a result of such activities. A critical scientific analysis of international experience in the field of financial regulation of cryptocurrencies has identified a number of key generalizations. The purpose of the article is to identify the main markers of digital financial assets, study international experience in financial regulation of virtual assets, including cryptocurrencies, identify opportunities to implement positive foreign practices to Ukrainian realities and diagnose the current state and prospects of cryptocurrency in Ukraine. Results. The specific characteristics of digital financial assets are substantiated, namely: freedom of issue, availability of cryptocurrencies, absence of intermediaries, high degree of protection, openness to developers, integration with the latest technologies that produce new digital products. The international practice of state regulation of cryptocurrencies is generalized in terms of both the interpretation of the conceptual apparatus and in view of the qualification of the mechanism of conducting operations with digital assets. It is proved that in Ukraine from the point of view of legal regulation of cryptocurrency is still outside the full framework of the legal field of domestic legislation. The main innovations and specifics of regulation of the market of virtual assets in accordance with modern Ukrainian realities are determined. Conclusions. The difference between national laws in the field of regulation of virtual assets is proved. It is argued that the main vector of regulation is aimed at strengthening control over the transparency and accountability of transactions with virtual assets, cybersecurity and mandatory user verification. The main directions of increasing the settlement and trust in virtual assets are formulated: production of standards and rules of cryptocurrency circulation, in order to bring it to the rank of a competitive means of payment; consolidation of the official status of cryptocurrency; formation of an open ecosystem through effective interaction of all participants in the process of buying / selling cryptocurrency; formation of a legal trading platform for cryptocurrency circulation; support of information literacy of the population to understand the benefits and risks of virtual currency etc.
Ivana Kuchařová, Daniela Pfeiferová, Enikő Lőrinczová
Research background: With the advancing entrance of digital technologies into all areas of private and business life in the past 10 years a new digital asset referred to as virtual currency or cryptocurrency had been invented. This virtual currency is not yet regulated in most countries and there is a need to establish a legal framework for accounting, taxation and recording of financial transactions so the treatment of transactions with these digital assets is the same across the globalized environment, as different approaches may affect the decision-making of the management and investors or can alter the tax base for income tax purposes. Purpose of the article: The aim of this paper is to compare and discuss the different possible approaches of recording and reporting of the virtual currencies for accounting and tax purposes and to compare the approaches among the Czech Republic, the Slovak Republic and Germany to point out the need for a harmonized solution in a global environment, as dealing with cryptocurrencies is not included in the accounting and tax legal framework in many other countries. Methods: Methods of description, analysis, comparison and synthesis are used to achieve the set aim of the paper. Different approaches to the topic are demonstrated and compared in illustrative Tables. Findings & Value added: The paper highlights the need for a uniform approach for the accounting and tax treatment of virtual currency by comparing the level of legal definitions and different approaches. The most elaborate legal implementation of this topic is in the Slovak Republic where the treatment of virtual currencies is included in the Accounting Act and the Income Tax Act. The Czech Republic approaches cryptocurrencies only on the basis of recommendations from the Ministry of Finance, which is not legally binding to obey. Germany has included cryptocurrencies in the Banking Act, the accounting definition is missing and the tax solution is in the Income Tax Act.
Abstract This chapter introduces the fundamentals of portfolio and financial consumer protection from frauds in the cryptoasset space. Cryptoassets pose new risks to portfolios and financial consumers: idiosyncratic risks stemming from their unique features and systematic risks arising from transitioning from centralized to decentralized finance. Market experience indicates that these risks threaten every portfolio and financial consumer holding cryptoassets. In the consumer protection framework, cryptoasset risks are higher than traditional asset risks. Cryptoassets fall outside the regulatory domain in many jurisdictions. Moreover, their decentralized nature, technological attributes, and the momentum of financial technology cause asymmetric technology, disarming system-based portfolio and consumer protection mechanisms against frauds and abuses. Hence, the idiosyncratic and systematic risks of cryptoassets highlight the importance of developing more vigilant self-protection mechanisms.
Purpose. The aim of the article is elaboration of theoretical and practical aspects of definition and functioning of cryptocurrencies as money. Methodology of research. The following methods were used in the study: statistical analysis and comparison – in the study of problematic aspects of the definition of cryptocurrency as a kind of money; logical assessment – in substantiating the principles of determining cryptocurrency as a kind of money; generalization – in the process of formulating conclusions based on the results of the analysis. Findings. It is established that money is a financial asset with high liquidity, which can be quickly converted into paper money or coins, serve as an intermediary in money circulation (i.e. play the role of equivalent in exchange) and can be used for savings and therefore anything that can function as money, are money (including cryptocurrency coins). It is substantiated that cryptocurrency coins, as a type of money, perform the following functions: there is a potential to perform the function of a measure of value after reducing the significant volatility of the value of cryptocurrencies; partly as a medium of exchange due to high volatility, regulatory resistance and low prevalence, but prevalence will increase as traditional payment systems begin to integrate cryptocurrencies, cryptocurrencies have high convenience and inclusiveness, have the potential to reduce transaction costs, increase settlement speeds, develop cryptocurrency markets and increasing their prevalence; due to opposition from ESG investors and regulators, low confidence from a significant number of citizens (especially over the age of forty) and a significant speculative component of cryptocurrency coins, only partially serve as a means of accumulation, however, the demand for cryptocurrencies from investors is constantly growing. Originality. The definition of cryptocurrency (cryptocurrency coin, cryptocoin) as a new digital type of money, which can measure the value of goods, services and other currencies, used for circulation, savings and investment, protected by cryptographic code with the inability to counterfeit or copy, and issue which everyone has the opportunity with the Internet and the necessary equipment with complete anonymity of the issuer (miner). Practical value. The main results of the conducted study will create favourable conditions for a better understanding of cryptocurrency as a new type of money, which will allow them to be more widely used in the economic activities of businesses and countries. Key words: money, cryptocurrency, cryptocoin, cryptocurrency coin, mining, cryptocurrency functions, Ethereum, Monero, monetary aggregate.
Introduction. Cryptocurrency is a relatively new financial market instrument, but due to a lack of the fundamental principles of the legal regulation and legal regulation of market of cryptocurrency, individuals and legal entities, who have at their disposal the virtual assets are effectively deprived of an effective way to protect their ownership of such assets. The following key features of cryptocurrency are outlined: lack of control and restrictions on financial transactions, anonymity, the possibility of using it as an investment tool, the speed of transactions, a high degree of security. The purpose of the paper is explores the question of definition of legal essence, the maintenance of cryptocurrency is investigated. Results. Nature and legal uncertainty does not allow it to be identified with any of the related concepts (money, securities, currency value, means of payment, currency, money surrogate, etc.). That is, cryptocurrencies are currently in Ukraine outside the scope of legal regulation. The analysis of definition of a concept of cryptocurrency in the draft law on circulation of cryptocurrencies in Ukraine is carried out; prospects for the legislative implementation of cryptocurrency in Ukraine, in addition, the author draws attention to the novelties of the legislation on financial monitoring, namely certain provisions of the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of Weapons of Mass Destruction Proliferation”. Conclusion. The analysis of the characteristics of cryptocurrency leads to a conclusion that the cryptocurrency can be understood as electronic money. The paper presents a vision of further trends in the use of cryptocurrency in everyday life and business environment, opens up an opportunity for further research in the field of the cryptocurrency market, further development of Ukraine and integration to the world financial system.
Олександр Сергійович Омельчук, О. С. Омельчук, Александр Сергеевич Омельчук, Oleksandr Serhiyovych Omelchuk · 13 authors
The article analyzes the legal nature and specific of legal regulation of cryptocurrency in order to reveal the features of inheritance of cryptocurrency assets. The article aims to reveal whether it is possible to inherit cryptocurrency in terms of the existent legislation and if so, what kind of peculiarities of cryptocurrency should be considered. The financial and legal nature of cryptocurrency are described in the article. The main differences between cryptocurrency and traditional electronic money are revealed. The current legislation of Ukraine and some European countries on cryptocurrency legal status is analyzed. It is stated, that in most countries of the world, cryptocurrency is not considered to be money or currency, but rather a kind of property. It is noted, that while solving the issue of inclusion of cryptocurrency assets in the legacy, it is necessary to take into account the functional features of cryptocurrencies in general and the specifics of a particular type of cryptocurrency. Most of the benefits of cryptocurrencies for their owner (such as anonymous character) are obstacles to their inheritance according to the procedures provided by applicable law. The classification of the methods of inheritance of cryptocurrency assets is made in the article. The differences in the inheritance of cryptocurrency and tokens are revealed.
Валерія Аркадіївна Динту, В. А. Динту, Валерия Аркадиевна Дынту, Валерия Аркадиевна Дынту · 9 authors
The purpose of the article is to explain the use of cryptocurrency as a terrorist financing tool. This article has emphasized the ways, which terrorists appraise for being a reliable fundraising means and their adoption. Methodology. For the purposes of the study, the methods of scientific abstraction, synthesis, observation, generalization, as well as the method of induction of literature and legal documents were used to determine the features of bitcoin, promoting and preventing its use for terrorism financing. Results. The development of the Internet and electronic devices has radically changed all spheres of human life, including criminal activity. Digitalization has led to the improvement of ordinary crimes and the emergence of new types of crime, which, in principle, cannot exist without special digital electronic devices. Among the first implementers of new technologies were terrorists, who took advantage of digitalization to increase profitability. Thus, terrorists have now significantly increased their attention to cryptocurrency as a digital means of payment, namely Bitcoin. Bitcoin has a number of features that have attracted the attention of criminals as a way to evade responsibility for a crime. In particular, decentralization avoids the need for confirmation by a central authority, and pseudo-anonymity provides a certain level of anonymity. In addition, terrorists are aware that Bitcoin's confidentiality is extremely fragile and needs to be enhanced. The paper analyzes several ways to enhance anonymity, such as software that anonymizes traffic and prevents IP identification, peer-to-peer mixers, centralized mixing services (tumbler), and other approaches. It is worth emphasizing that for the fight against crime, the main issue is the de-anonymization of the Bitcoin owner/user, which allows the identification of the criminal. Currently, law enforcement agencies use direct and indirect de-anonymization, proliferation analysis, quantitative analysis, time analysis, and transactional network analysis, among others, to achieve the above goal, which are discussed in detail in this article. In addition, agencies around the world investigated and uncovered terrorist groups and their financial facilitators. Specifically, on August 13, 2020, the U.S. Department of Justice's Office of Public Affairs announced "the largest cryptocurrency seizure in the context of terrorism in history." To investigate the agenda, the legal documents of those investigations that contain information about the terrorist fund-raising mechanism were examined and analyzed. The legal documents revealed that these investigations used the aforementioned de-anonymization approaches.
Annotation. The article is aimed at the study of cryptocurrency systems and methods of their classification by various properties and characteristics. Despite the active study of cryptocurrency systems by modern scholars, there is still no general consensus on the categorization of classifications. The result of this ambiguity is a general lack of practical understanding of the various forms of cryptocurrency at both the consumer and government levels around the world. The consequence of the article is the division of the whole set of cryptocurrencies to correct this ambiguity. The author has developed a generalized classification of cryptocurrencies, which is designed to fill certain gaps in the study of cryptocurrencies. The most important classification features are revealed and the table of classification of cryptocurrency systems is made, where cryptocurrencies are divided into types and subspecies. The purpose of the article is to develop a detailed classification of cryptocurrencies based on the systematization of existing knowledge about cryptocurrency systems. Nowadays, there are more than 2,000 cryptocurrency systems in the world. And the rapid development of these systems in recent years has forced many not only scientists but also ordinary people to study this area in more detail. Cryptocurrency is the evolution of financial technologies and cryptographic methods. The emergence of the first cryptocurrency - bitcoin led to the creation of new cryptocurrencies, which necessitated their systematization. Cryptocurrencies should be divided into groups according to their features and characteristics in the following categories: purpose, issue size, viability, originality, centralization, availability of innovations, method of rotation, legal status, type of creation, method of production, generation algorithm, encryption method, speed, scope application, degree of dependence, security, volume of capitalization, market value. The algorithms for generating cryptocurrency systems, in particular Proof-of-Work and Proof of share, are considered. The analysis shows the diversity and versatility of cryptocurrency systems. Key words: cryptocurrency, classification, virtual assets, bitcoin, mining, fork.
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.
Introduction. Cryptocurrency and related activities in Ukraine are not regulated by specialized law. Transactions with currency «crupto» are increasingly used in the accounting practice of domestic enterprises. The correctness of an accounting of such transactions is influence on actuality of the financial statements, the completeness of the taxes payment and the amount of income and profits of enterprises.The main aim is to analyze the peculiarities of the formation and movement of cryptocurrency, its recognition as an object of accounting, justification for further accounting evaluation and impact on performance.Methods. Methods observation, comparison, analogy, grouping and classification, abstraction and specification, analysis and synthesis, tabular and structural-logical methods are used. The information base of the research is the scientific achievements of domestic and foreign scientists and specialists, own experience and observations.Results. The definition of cryptocurrency as an object of accounting and a source of economic benefits is considered. The possibilities and advantages of cryptocurrency using in different spheres of economy are determined and systematized. The role and significance of cryptocurrency with the functions of money are compared. The possibility of classifying cryptocurrency as a certain type of enterprise assets in accordance with IAS and UAS (P(S)BO) is analyzed. The peculiarities of valuation and accounting of cryptocurrency as an intangible asset are substantiated. The problems of taxation of cryptocurrency transactions are identified and certain solutions are proposed until the regulatory settlement of this issue.
The emergence and popularity of the cryptocurrency has caused a great deal of controversy in the scientific community over market development opportunities, further use of virtual money, and its integration into traditional accounting systems. The global financial market creates many opportunities to use electronic and virtual money for various types of transactions, and the question of how to record cryptocurrency and related transactions in accounting remains relevant. The aim of the research is to evaluate the alternatives of cryptocurrency accounting. For the research methods of scientific literature analysis, comparison, interpretation, information systematization, generalization were used. Although various authors, national and international accounting standards regulators provide their insights and recommendations on cryptocurrency accounting, a unified system has not been formed yet. Currently are analysed such alternatives of cryptocurrency accounting as financial asset, intangible asset or inventory.
Introduction. In the coming years, the accounting sector is expected to undergo major changes due to the fact that Blockchain technology is being actively introduced in the financial sector of the countries. The article gives a critical assessment of the situation, as well as discusses the problematic aspects and prospects for the development of the blockchain in the system of accounting and auditing. The definition of the economic content of the blockchain is investigated. It has been found that the cryptocurrency system works on Blockchain technology, the essence of which is the possibility of a separate group of people to manage a virtual "ledger", i.e. one sheet of such a book is a block, and the book itself is a chain of block sheets. The platform is a public register based on distributed ledgers, which can be shared across multiple network nodes, providing each participant with their own copy. The studied technology has an important feature for accounting, because the information created in this database can be trusted, even if there is no trust in the counterparty. Blockchain technology is the basis of the basic principles of cryptocurrency: transparency, anonymity, decentralization,speed and security. Blockchain technology and one of the products of its implementation - cryptocurrency, can really be a starting point for the transformation of the world economy and its implementation in Ukraine. With the help of the blockchain, the relations «state-business», «business-business», «population-state» can change significantly. In other words, the main transformation will be related to the possibility of delegating to a computer program (algorithm) the conduct and certification of transactions without the participation of third parties (state, banks, other intermediaries), the results of which will be trusted by all or most economic entities (market). Methods. The authors used the following scientific methods in the process of research: induction and deduction - in the process of studying the general trends of Blockchain development in Ukraine, analysis and synthesis - during theoretical generalizations, formation of appropriate conclusions; bibliographic - research of literary sources to obtain the necessary information on the research topic; method of associations and analogies - for proposed new ideas and proposals that arise from comparison with other more or less similar objects. Results. Proponents of Blockchain technology believe that the new tool will be able to replace not only accountants but also banking institutions and many financial intermediaries. According to the Blockchain Research Institute, Ukraine was on the list of 14 countries that were recognized as leaders in the implementation of Blockchain. However, the state needs to restructure huge systems with a huge number of people to use this tool. Blockchain technology aims to put an end to traditional methods of accounting, documentation, processing, registration, inventory systems. Blockchain allows companies to register both parties to a transaction simultaneously in a shared book in real time, rather than storing matched records of financial transactions separately in a private database. The need for traditional double-entry bookkeeping will be eliminated, as the verification of the legality of accounting will be fully automated. Disscusion. The main task set when writing the article is to substantiate the feasibility of using blockchain technology in accounting and auditing.
The purpose of this research is to determine the prospects for the use of cryptocurrencies on the example of bitcoins. In the process of theoretical research economic and legal features of cryptocurrencies are revealed: their performing of the money functions, types of economic transactions carried out with their involvement, the legal security of the cryptocurrency market. Problems related to the decentralization of cryptocurrencies are analysed. Among them there are the threat to the stability of national currencies, the use of cryptocurrencies for financing of criminal activities, weak financial control over operations in cryptocurrencies, which reduces the possibility of adequate taxation of related incomes. It was found that improving the legal structure of cryptocurrency circulation, ensuring financial control over it would help to reduce the economic dangers and risks associated with the use of virtual money. The tendencies in change of the extracted volume, exchange price, market capitalization of such cryptocurrency as bitcoin are analysed. It is determined that bitcoin shows sharp price fluctuations over short periods of time that are not related to its quantity. But the demand and supply of bitcoins are influenced not only by speculative expectations, but also by fundamental factors, that influence the prices of other stock assets. In addition, the price of bitcoins is affected by development of the computer technologies and by legislative changes. This allows to make predictions about the dynamics of the price of virtual money. Scenarios for the development of the cryptocurrency market in Ukraine are proposed. Legislative support for the bitcoin market would accelerate its development, make its operations safer for its participants and help to counteract money laundering operations.
The purpose of the work is to determine the main approaches to the organization of accounting and management in a modern enterprise. The study found that blockchain technology supports the invulnerability and independence of the interests of legal entities in relation to the influence of third parties. The introduction of blockchain technology in accounting contributes to the innovative development of the system in the enterprise during the use of cryptocurrency in payments between buyers and customers. The article presents the main risks of using virtual currency. Implementation of modern technologies for the enterprise, such as cloud storage, XBRL technology, blockchain, violates the new requirements for the presentation of business (financial) reporting data and their transfer to stakeholders. Any technology must provide confidence in the representativeness of information and trust in it. The model of carrying out operation between the enterprises by means of cryptoactive assets is offered. The types of risks from the use of certain funds are analyzed. It is
Voznyak, H. V., Savchuk, N., Zherеbylo, І., Skasko, O.
Modern transformational changes occurring in the socio-economic life of countries are conditioned by the evolution of information and communication technologies, the deployment of globalization, decentralization, the strengthening of the openness policy and the increase of efficiency of use and hence the transition from a bureaucratic model of government to a consensus model, a built model. implementation of entrepreneurial management mechanisms in providing social services to the population actualize the need for rethinking and justification the structure of public finance in the new environment. On the basis of systematic analysis, the theoretical aspects of «public finances» are revealed in the article, their structure is substantiated and the necessity of application in scientific circulation as an important dominant of civil society is proved. It is emphasized that the essential characteristics of this definition are revealed by the existence of financial and economic relations between the population, the state, other public institutions and economic entities regarding the formation, distribution, and use of public funds to meet the public needs of the population. It is shown that the structure of public finances is formed by state and local finances, finances of communal enterprises and state corporations, finances of enterprises and organizations of communal ownership, extrabudgetary trust funds and public funds. Among the dominant features of public finances in the context of modern transformations are transparency and imperative character. It has been argued that the vector of public finance reform must continue to be decentralization, which, in addition to the redistribution of resources and powers, should promote the extension of the financial powers of local governments, increase the transparency of both public and local finances, and raise public accountability. the public sector and improving the quality of life of the population.
The use of cryptocurrencies is actively spreading in a lot of countries around the world on the basis of economic and technological progressive development. Cryptocurrency attracts investors to launch the initial coin offering (ISO). Cryptocurrency has important features: it is not controlled by the state, does not require the participation of a third party in the calculations. Cryptocurrency transactions are confidential. However, the lack of legal regulation and a unified approach to determining the economic essence of cryptocurrency makes it difficult to reflect in the accounting.
Problem setting. Comprehensive digitalization of all spheres of life, as one of the most important factors of economic growth in any country, is the mainstream of the modern global world. Digital transformations in the economy are changing approaches to both the organization and conduct of economic activity and the format of its state regulation. The development of the digital economy is inextricably linked with the “digitalization” of a number of traditional objects and / or forms of interaction between participants in economic relations, as well as the emergence and active circulation of new objects whose existence is possible only in digital format (“ digital objects “). Virtual assets / cryptocurrency are one of such objects to which there has been a bivalent attitude since its appearance, and to the legal nature of which a unified approach has not been formed to date. Analysis of recent researches and publications. Among the researchers who in their works addressed the issue of the legal nature of virtual assets / cryptocurrency and transactions with it, it should be noted M.V. Grebenyuk, B.V. Derevyanko, I.M. Doronin, A.T. Kovalchuk, L.O. Nikitin, S.S. Pylypyshyn, V.A. Ustymenko and others. At the same time, a full-scale study of this issue, in particular from the standpoint of economic law, requires further legal, including economic and legal research. Target of research is to study the heterogeneous nature of virtual assets / cryptocurrencies in the context of digital transformations in the economy and modernization of domestic legislation. Article’s main body. In the context of global digitalization, the scale and pace of digital transformations associated with the emergence of new digital objects, their active involvement in civil, economic turnover and subsequent market turnover are growing. Virtual assets/cryptocurrency are one of the objects in relation to which there has been a bivalent attitude since its appearance, and in relation to the legal nature of which a unified approach has not been formed to date. This article discusses the first official explanations in Ukraine on the nature of virtual assets / cryptocurrencies, as well as the position of the Office of Effective Regulation (BRDO) and theoretical and legal approaches to this object. Qualification features are analyzed, which contains the legislative definition of “virtual asset”, which together represent its functional heterogeneity. Some issues related to the contractual basis for the circulation of virtual assets / cryptocurrencies are highlighted, and suggestions for further development of the current legislation on these facilities are provided. Conclusions and prospects for the development. Legislative legalization of the concept of “virtual assets” is an important step towards the legalization of the virtual assets market and the first stage of the institution of virtual assets, further development of which requires intensification of work on the development of relevant legislation on virtual assets. connection with the generation (issue) and circulation of virtual assets. At the same time, achieving a synergistic effect in the legal regulation of relations, the object of which are virtual assets/cryptocurrency, necessitates appropriate amendments to the Commercial and Civil Codes of Ukraine, the Law of Ukraine “On e-commerce”, tax, investment legislation and more.
Introduction. The digitalization of the financial sector leads to the transition to blockchain technology, which opens up additional opportunities for expanding the financial base of the state through fiscal mechanisms, and generates additional risks. That is why the topic of taxation of the digital sector is now being addressed both at the governmental level and by a number of scientists and crypto enthusiasts.The relevance of the topic presented in the article is determined by the need to determine the legal status and legalization of cryptocurrencies in Ukraine in the system of modern payment and exchange transactions. Methods. Methods of analysis of foreign taxation practice and regulation of cryptocurrency circulation and determination of tax base are used in the process of preparing the article, as well as approaches to interpretation of cryptocurrency from the positions of goods, property, digital financial asset, intangible asset. Results. The results of the study showed that Ukraine has approaches that are based on domestic legislation, or rather its opportunities for expansion in order to conceptually adopt the cryptocurrency industry in the current legal field, and to study foreign experience and practice of leading countries that are already taxing transactions with cryptocurrencies on the general principles of tax legislation, or create privileged conditions in the form of reduced rates or a preferential tax period. Discussion. The difficulty is to find a balance of interests between the state and the user of cryptocurrencies, and it is essential to determine the status of legalization of digital financial assets and digital currencies for the digital economy, which will expand infrastructure and ecosystems in cryptocurrency projects. And scientific approaches will allow to integrate them into the economic system of the country. Keywords: blockchain, cryptocurrency, cryptocurrency, digital goods, taxation, legal status, tax norms
Introduction. The article gives a critical assessment of the situation and discusses the problematic aspects and perspectives of the institutionalization of cryptocurrency. Given the growing public interest in cryptocurrencies circulation, stock market trends, benefits and opportunities for the economy, as well as the associated threats and challenges, regulatory policy and the legislative framework are imperative. It is impossible to solve the problem of legal, accounting and tax consequences of cryptocurrency transactions without determining the legal status of a cryptocurrency. The lack of standards and clear recommendations of the relevant methodological authorities necessitated the search and systematization of international accounting, financial reporting and taxation practice on cryptocurrency transactions. Methods. The authors applied the dialectical method of cognition and general scientific principles of complex research, which include empirical, general logical, theoretical and cognitive methods. These methodological tools are used to identify approaches, assess trends in cryptocurrency circulation and cryptocurrency market, consider the nature and disclosure of cryptocurrency, identify methodological problems of integration of cryptocurrency and related transactions in the system of accounting and financial reporting, differentiation of approaches to determining legal status. Results. Undoubtedly, cryptocurrency has potential. However, to realize this potential, stimulate the growth, increase the accessibility and the level of trust, effectively scale of the business and its interaction with regulatory authorities, it is necessary to create a more institutionally friendly environment. Without appropriate legislative regulation of circulation and determination of the legal status of cryptocurrencies, as well as in the absence of clear recommendations of methodological bodies in the field of accounting and taxation, many legal, theoretical, and applied issues of accounting and taxation cannot be resolved. Discussion. Domestic lawmakers, regulators and scientists have to analyze actively the experience of other countries, to study scientific developments and to conduct further research in order to normalize these relations in the European and global context.
The main advantages of cryptocurrency are justified: confidentiality and, therefore, the security of owner data; independence from the state; absence of territorial and time constraints in transactions; low cost of service, etc. The advantages and disadvantages of using cryptocurrency in the period of exacerbation of economic crisis are presented. The global experience of legal and market regulation of cryptocurrency circulation is considered. Prospects for the further functioning of cryptocurrency as a financial innovation in modern economic systems are outlined.
Apr 2, 2020·CEUR Workshop Proceedings, Vol-2588: Proceedings of the International Workshop on Conflict Management in Global Information Networks (CMiGIN 2019)
Наталія Краус, Наталія Олександрівна Андрусяк, Аліна Савченко, Maksim Iavich
Pursuing the purpose of effective functioning in today's conditions, the business is forced to transform rapidly, to modernize at all levels. The world is changing, erasing the limits of its certainty. Companies need quality trans- formations and strategies that are effective in the face of rapid change towards "deep" digitization. Massive corporate management systems increasingly need the flexibility to keep pace with change. And companies with an innovative cul- ture are more in need of creative tasks than implementing detailed regulations. In the post-industrial time of digital economy, issues related to the development of the information sphere, the media and communications, the usage of modern information systems to develop the economy and stabilize social development as a whole, come first. The basic principles of practical application of Block- chain are investigated in the work. The stages of development of Blockchain technology, the stages of development of Blockchain technologies by time, the application of distributed registry technology in Blockchain applications, the principles of construction and operation of Blockchain have been specified. The benefits of using NEM for business are substantiated and the components of Proxima X technology, protocols and service layers, on-line and off-line proto- cols, decentralized applications are exposed.
Сьогодні криптовалюта набирає все більшої популярності. Використовуваний протягом кількох років, вона була незалежною, анонімною, стійкою до впливу банків чи уряду. У статті представлені носії цифрової цінності, які мають лише форму комп’ютерно-читаної інформації та не мають матеріального еквіваленту (наприклад, банкноти, монети чи жетони). У статті розглядається історія та характеристики біткойна, аналізується вплив криптовалюти на традиційні безготівкові розрахунки, методи та найпопулярніші майнери криптовалюти, а також як і де купувати та продавати криптовалюту на біржі. У висновку зазначено, що для правильної роботи з криптовалютою необхідне комплексне правове регулювання. Документ також містить інструкції, як зареєструватися на біржі CoinCasso і як використовувати посилання «рекомендація» для здійснення транзакцій на біржі
Problem setting. In modern conditions special consideration is attracted to the global discussion related to the nature and unshadowing of cryptocurrencies. One of the most relevant topics for discussion in the cryptocurrency space is the future legal regulation of this sphere and the necessity of tight control of financial institutions in the cryptocurrency trading. Nowadays on the territory of Ukraine the legal regulation of the cryptocurrency sphere remains unresolved, effective legislative changes have not been adopted yet. However, some consensus has already been reached on the territory of the European Union in the field of the legal regulation of cryptocurrencies reformation, which causes unconditional interest for Ukrainian scientists and businesses. Based on the stated above, the purpose of the article is to analyze the legal regulation of cryptocurrency unshadowing in the European Union in order to identify the most effective mechanisms for its adaptation into the domestic legal framework. Analysis of recent researches and publications. Some aspects of the legal regulation of the domestic legislation reformation in the sphere of cryptocurrencies have become the subject of scientific research of such authors as Burkovskaya A. V., Varnavsky A. V., Vasilevskaya L. Yu., Kravchenko L. M., Kud A. A., Kucheryavenko N. P., Lizunova A. N., Lunkin T. I., Perebinis M. G., Smychok E. N., and others. At the same time, comprehensive studies of the European Union legislation innovations in the sphere of the cryptocurrency unshadowing and the impact of the reformed legal EU regulation on national legislation of Ukraine is not carried out, that fact actualizes the theme of the article and further research and development. Article’s main body. European leaders today have reached the consensus on the issue that innovative technologies, which are the basis of cryptocurrencies, have the potential to increase the efficiency of the financial system and the economy as a whole, both at the national level and across the European Union. At the same time, European experts have not yet formed a unified approach to the nature and legal status of virtual currency. Scientists argue that increasingly virtual (fiat) currencies are used to finance terrorism through transaction anonymity, so the European Union introduces additional monitoring of virtual currencies and transactions, legalized in Directive (EU) 2018/843, which was analyzed in the article. Repeated attempts to legalize digital assets in Ukraine were made by the legislator, however, none of the bills has been adopted and so far the only regulatory act that would resolve the issues of the cryptocurrencies’ legalization and effective measures to unshadow them have not been adopted, which, in turn, requires the intensification of the legislators’ activities, given the rapid development of cryptocurrencies and innovations. Conclusions and prospects for development. The study showed multivariate interpretations of the legal text of the Directive (EU) 2018/843 by member-countries, as well as the presence of a hidden control regime that goes beyond the needs of the document. At the same time, the Directive (EU) 2018/843 is intended to become an effective regulator of legal relations in the sphere of cryptocurrencies and requires its gradual implementation in the legislation of Ukraine in order to fulfill the international legal obligations of our state.