The article deals with ontological aspects of cryptocurrency, its classification characteristics and types. The questions related to the creation of a new instrument of monetary policy are studied. The authors carry out analysis of foreign and domestic scientific papers, international and state regulatory documents linked with cryptocurrencies. The study reveals the distinctive features of cryptocurrency from the concepts of ‘digital currency’ and ‘virtual currency’, as well as historical stages of their development.The authors describe characteristics of three main communication elements between the participants of operations with cryptocurrencies. The article discloses the model of decentralized digital currency schemes and their main characteristics. The paper presents the analysis of normative documents regulating the turnover of cryptocurrency in Ukraine and considers the problems of displaying transactions with cryptocurrencies in the accounting.The authors investigate the problems of cryptocurrency’s use as a full-fledged currency in contemporary economic conditions, in particular, the absence of a centralized cryptocurrency emission institutions, circulation control, transaction anonymity and insufficient of high liquidity, as well as substantial short-term leaps in its value.According to the results of the study the authors propose approaches of book-keeping for transactions with cryptocurrency in accounting for companies in Ukraine depending on the purpose of their use (purchase of a web-purse for operations with cryptocurrency, purch
The subject matter of the article is the substantiation of the problems and perspectives of the introduction of Distributed Ledger Technologies (DLT) / Blockchain in the public and private sectors as a modern digital economy instrument. The goal of the work is to substantiate the scientific and methodical principles of implementing the technologies of distributed DLT / Blockchain registers. The following tasks were solved in the article: the notion of Distributed Ledger Technologies (DLT) and Blockchain is defined; types of Distributed DLT Registries are presented in the form of a classification with a distinction of features and possibilities of application of each type; the general scheme of work is described and the specific features of the Blockchain technology are systematized;the features and directions of the use of intelligent contracts (smart contracts) based on the technology of blockchain are singled out;the international experience of government initiatives and pilot projects of the blockade technology application has been analyzed; the analysis of the domestic experience of practical application of Blockchain technologies in the public and private sectors and the perspective areas for the future application of technologies of the distributed DLT registries are identified; according to the international analytical agencies research results, the obstacles of the Blockchain technologies implementation in the public and private sectors are systematized. The following methods are used: abstract-logical analysis, theoretical generalization, system and statistical analysis. The following results were obtained. The concept of technologies of distributed DLT / Blockchain registries is disclosed. The availability of the system is based on open, private and federal DLTs. The specific features of DLT / Blockchain distributed registry technologies include centralization, involvement of a large number of participants to achieve consensus, use of cryptography and digital signatures, almost impossible to change chronological records, the convenience of tracking and verifying information, and the ability to program. The international experience of using Blockchain technology in countries such as the Great Britain, Georgia, Estonia, the USA, the United Arab Emirates, Italy has been researched. Examples of practical implementation of DLT / Blockchain registry technology in Ukraine are considered. The main obstacles to implementing distributed DLT / Blockchain registries in the public sector are regulatory restrictions and technology immaturity. The obstacles to the introduction of block technologies in the private sector are identified. Conclusions: It is proved that the distributed DLT registry technology has a significant potential for development for the future digital economy. Nevertheless, there are a number of barriers to their full use in the public and private sector, which requires further study by experts.
The article identifies gaps in the legal regulation of Kiptocurrency status. The state of legislative regulation of cryptocurrency turnover in Ukraine is considered. The possibility of using cryptocurrency is considered in the economic activities of business entities, namely, making it into the authorized capital. The analysis of modern and foreign experience is given for example. On its basis, the solution of this problem is proposed.
У статті охарактеризовано основні виклики, що постали перед фінансовими системами країн світу з огляду на появу криптовалют, які здатні порушити монополію центральних банків щодо контролю грошової маси в обігу. Визначено наявні у світовій та вітчизняній практиці підходи до визначення сутності криптовалют. Розглянуто основні відмінності між електронними грошима і віртуальною валютою. Здійснено оцінку тенденцій на ринку криптовалют, динаміки капіталізації основних криптовалют, зокрема біткоіна, структури криптовалютного ринку. Проаналізовано ситуацію відносно визначення правового статусу криптовалюти в зарубіжних країнах та Україні, обґрунтовано наявність у світовій практиці п’яти основних підходів до регулювання ринку криптовалют. Визначено переваги та недоліки потенційного використання криптовалют як платіжного засобу, а також ризики, пов’язані із частковим заміщенням офіційних платіжних засобів криптовалютами. Визначено ключові передумови застосування ефективних регулятивних підходів до здійснення операцій з криптовалютами, напрями побудови законодавчо-нормативної бази таких операцій в Україні.
The need to obtain prompt access to funds through electronic communications, protecting investment after the global financial crisis has led to the emergence of a new type of electronic money — the cryptocurrencies. The modern state and prospects for development of the cryptocurrency as a special kind of electronic money were expounded. Cryptocurrencies gain significant popularity due to the advantages of their use, such as: comfort, independence, accessibility, lack of engagement, confidentiality, no documents, full automation of accounting, and cost optimization for administration. Various scientific positions concerning the accounting and economic positioning of the cryptocurrencies in Ukraine were researched. The proposed order to display in accounting the processes of initial obtaining (mining) with the definition of a cost calculating method and operation of the cryptocurrencies most fully corresponds to the national accounting treatment. It was proposed to resolve to the problems of management accounting of electronic money and cryptocurrencies in Ukraine through the combination of functional capabilities of the blockchain technology, positive qualities of the «Internet Bank» and «Client-Bank» communications, which will enable to create a hybrid system of non-cash payments by the cryptocurrencies, electronic money, funds on accounts in a bank with free conversion of existing funds and possibilities for information exchange with all the participants in settlement operations. The article presents a methodology for collecting accounting information on settlements with the cryptocurrencies and other electronic money without the formation of traditional payment documents and bank statements. Electronic information from the hybrid communication system is the foundation for fully automated documenting, formation of accounting records, informing accountants and management of non-cash transfers. Automation of management accounting of electronic transactions helps to increase the level of internal and external control over execution of money operations due to timely and remote informing sharing about the parameters of payments.
Elena Kirillova, Albert Valentinovich Pavlyuk, I. A. Mikhaylova, Зульфугарзаде Теймур Эльдарович · 5 authors
The current article examines the peculiarities and legal nature of Bitcoin, Lifecoin, Namecoin, Quark, WebMoney, Ripple and other virtual currencies. There is no single understanding of the legal essence of virtual currency in the world today; therefore, the legal status of such currencies is not officially fixed and there are no official rates of Bitcoins or other crypto currencies against national currencies. Their rate is determined in the course of trading at virtual Bitcoin exchanges and exchange platforms. Such a situation is dictated by the novelty of legal relations in the field of crypto currency circulation, the risks of their implementation, as well as security problems. The main goal of the study is to define the legal nature and features of virtual currencies and the possibilities of legislative regulation of using crypto currencies. When writing the article, the methods of collecting and studying singularities have been used, as well as generalization methods, the methods of scientific abstraction, and the methods of studying regularities. The study has concluded that it is advisable to provide for the licensing of mining and crypto trading at the international level, customers should be identified when selling and buying virtual currencies, introducing a special verification procedure for Bitcoin users will prevent the abuse of virtual currencies for money laundering and terrorism financing. As a result of the analysis, a definition has been given, and the main features and functions of the virtual currency have been highlighted. It has been proved that virtual currencies are a new kind of electronic money stored in computer memory, the monetary value of the virtual currency is managed by means of a technical device. Virtual currency is a new means of payment and does not require access to deposit accounts.
Cryptocurrencies – a new, but quickly developing concept within the sphere of finance. Opinions regarding it still differ, not only on a personal level, but also when it comes to governments. Overall the legal regulation regarding cryptocurrencies in the world is still in the formation stage. Currently the legal norms that do exist, are primarily directed towards the minimization of existing risks, especially in the field of money laundering. Though there is already no reason to doubt, that during the coming years the regulation will become stricter. In some countries cryptocurrencies are outright forbidden. For example, in China, in February 2018 additions to the legislation were issues, that broadened the cryptocurrencies ban. In other countries cryptocurrencies shall be strictly regulated. For example, in Estonia, a member of EU, cryptocurrencies are fully legal. Estonia can be reviewed as a country that independently developed its own regulation in this field. Though there is no guarantee that the legislators will keep up with the quickly developing technologies. One way or another cryptocurrencies exist and are not going anywhere. The legislation that regulates them shall be developed further and they shall become a important part of the modern financial system. The level of their influence is hard to predict, things are changing too quickly, but their existence is a fact. It is necessary to remember, that that cryptocurrencies are not a magical solution or means of profit. It is a financial instrument, new, in many ways unique, with its own special drawbacks and benefits. It is important to know and understand them, also to keep an eye on the developing technologies.
The current global financial market is witnessing the activation of cryptocurrency as a payment instrument and a means of accumulation. However, the risks of money laundering, terrorism financing and tax evasion that cryptocurrency transactions imply lead to the need to implement their state regulation, an important component of which is tax control.Therefore, the purpose of the article is to substantiate the value orientations when forming the system of cryptocurrency transactions tax control in Ukraine taking the positive experience of developed countries into account. The scientific results of the study consist in the emphasizing structural, functional, systemic and institutional approaches to understanding tax control, which became the basis for identifying the features of cryptocurrency transactions as a tax control object.It was revealed that the lack of personalization of the agreement parties, the relatively high level of information security, free international turnover and a decentralized payment system are the factors of the cryptocurrency market further development. On the other hand, this leads to the loss of tax revenues for Ukrainian budgetary system, taking into account the forecasted trends in the development of the cryptocurrency market by 2022 through methods of sums, least squares and expert estimates. Given the institutional approach to the understanding of tax control, an institutional structure of the cryptocurrency transactions tax control in Ukraine is proposed.It is established that domestic state institutions are able to carry out tax control over these transactions. It is also determined that introducing fiscal control will result in the receipt of additional revenues by budgets, reduction of shadow economy, counteraction to cybercrime and terrorism financing.The practical importance of the results is in the need to form an effective system of cryptocurrency transactions tax control as a function of public administration.It has been determined that transactions on cryptocurrency supply, on the determining exchange rates and transactions on cryptocurrency disposal should be an object of tax control in Ukraine. Mining transactions, receipt of income (profits) in the cryptocurrency are subject to general taxes, depending on the taxpayer’s legal status, in particular, personal income tax, corporate income tax and a unified social tax (UST). Taking into account the EU recommendations on the non-application of value added tax in the cryptocurrency transactions taxation, it is not appropriate to implement it in this area. Establishing tax control over cryptocurrency transactions will expand the powers of state authorities that are empowered to control observing financial discipline by economic agents in Ukraine and the financial capabilities of state and local budgets.
The purpose of this article is to determine how the use of a bitcoin as an instrument of payment can affect the system of international financial payments and the banking system. The method of critical analysis of scientific and methodological literature is used and the materials of research executed by leading experts in the fields of international finance and IT in 2009-2017 are summarized. A bitcoin can become a serious competitor to banks, payment systems such as SWIFT in the implementation of major cross-border payments. It is even compared with gold because there is no risk for the counterparty in operations with it. We suggest that a bitcoin is an outstanding digital technology which can fundamentally change the world banking system, payment settlements and the global economy. The article proposes a classification of advantages, disadvantages and prospects of using a bitcoin as a means of payment between large financial institutions and banks. The perspective of increased competition between leading international payment systems in conducting large cross-border payments is substantiated. The prospects of further studies are determined. How do central banks need to reform the system of international financial payments in view of the inevitable introduction of cryptocurrency? How to implement new financial instruments based on blockchain technology and a bitcoin? What changes in legislation should be made to get the names of buyers and sellers of bitcoins, which will help to reduce financing of illegal activities?
In Ukraine, the cryptocurrency is viewed as a monetary surrogate. In many countries of the world, operations with cryptocurrency are more or less permitted. You can name countries such as Australia, Austria, Bulgaria, Brazil, Israel, Canada, China, Norway, Singapore, USA, Thailand, Germany, Croatia, Switzerland, Japan and others. On the basis of objective analysis and the study of examples from foreign experience, the legal regime of operations with the cryptocurrency is proposed to equalize with the legal regime of operations with foreign currency; legalize the mining of the cryptocurrency as a type of economic activity, introduce its licensing and taxation of income from it. Citizens of Ukraine are not forbidden to keep savings in foreign currency and exchange foreign currency for hryvnia and other foreign currency. Ukrainians can not receive wages or any remuneration in foreign currency on the territory of Ukraine, but they can earn or win foreign currency on the Internet. The same regime should receive cryptocurrency. And operations on mining of cryptocurrency should be licensed as highly profitable and requiring a special knowledge and skills type of economic activity. Applying income tax to miners is offered on general terms. Three ways of determining the amount of taxes are proposed: 1) granting access to representatives of the fiscal body to the computer program and purses of the cryptocurrency; 2) through the calculation by the representatives of the fiscal body of the average monthly volume of production of units of crypto currency for a certain equipment and, accordingly, in proportion to it, the amount of tax; 3) in proportion to the amount of electricity spent. The last two look the most real. In the case of taxation of operations on «mining» of cryptocurrencies, the state through the amount of electricity consumed can identify and control miners. It is concluded that the legalization of the state of the budget. REFERENCES Derevianko B.V. 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The development of information technologies is accelerated in the modern world. The digitization of socio-economic relations is carried out on the basis of peer-to-peer blockchain technology. Bitcoin is a cryptographic protocol. The article shows that, to date, there is no common understanding of Cryptocurrency, in some sources they are treated as currency and other goods or raw materials in other. At this moment, cryptocurrency in Ukraine is not regulated at all. This article discusses the potential legal classification of Bitcoin and the consequences thereto. Bitcoin has been, and continues to be, used by some for the purchase of illegal substances and in furtherance of crimes. Nonetheless, Bitcoin possesses significant economic upside over traditional currencies and methods of transaction online. The National Bank of Ukraine (NBU) has not yet recognized bitcoin or other encrypted currencies. Several bills to regulate encrypted money have been submitted, but none has yet been passed. The Ukrainian parliament has been actively trying to find a solution for creating a legislative and regulatory framework specific to the cryptocurrency industry. Ukrainian draft laws give their own definition of crypto-currency, mining and other specific terms; stipulate those who have the right to engage in mining, how the activities of exchanges are regulated, and the attendant moments, such as legal responsibility and specific taxation. Yet, the proposed legislation has not yet been passed into the law. Ukraine should monitor world trends and not miss a chance to use new technologies and innovations in the financial sector. On the basis of the analysis of domestic and foreign practices, a number of non-regulated by Ukrainian law of the creation and circulation of cryptocurrencies have been identified by the law of Ukraine, proposed ways of resolving issues of determining their legal nature and legal regulation. The situation regarding the definition of legal status of cryptographic goods in foreign countries and Ukraine is analyzed. The main points to be solved in the course of approval of the right regulation of cryptocurrencies in Ukraine are determined. REFERENCES Liashenko V.I., Vyshnevskyi O.S. Tsyfrova modernizatsiia ekonomiky Ukrainy yak mozhlyvist proryvnoho rozvytku: monohrafiia. Kyiv, 2018 [in Ukrainian]. Cryptocurrency Market Capitalizations. Top 100 Cryptocurrencies by Market Capitalization. URL: https://coinmarketcap.com Ponsford M.A Comparative Analysis of Bitcoin and Other Decentralised Virtual Currencies: Legal Regulation in the People’s Republic of China, Canada, and the United States. Hong Kong Journal of Legal Studies. 2015. Vol. 9. URL: http://ssrn.com/abstract=2554186 Kryptovaliuta: Zibraty po kryptakh. Kryptofakhivtsi roziasniuiut yurystam znachennia naiposhyrenishykh sliv “latyny maibutnoho” kryptomovy. Za materialamy vydannia “Ukrainskyi Yuryst”. URL: http://axon.partners/uk/blog/cryproalphabet/ [in Ukrainian]. Nermin Hajdarbegovic. Japan Makes First Bitcoin-Related Drug Arrest. Coindesk. May 9, 2014. URL: . https://www.coindesk.com/japan-makes-first-bitcoin-related-drug-arrest Pravove rehuliuvannia kryptovaliutnoho biznesu. Axon Partners, ForkLog Research. URL: http://axon.partners/wpcontent/uploads/2017/02/Global-Issues-of-Bitcoin-Businesses-Regulation.pdf [in Ukrainian]. The Federal Reserve System’s semiannual monetary policy report to the Congress. The U.S. Government Printing Office. September 17, 2015. URL: http://www.cftc.gov/PressRoom/PressReleases/pr7231-15 Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (Text with EEA relevance). Official Journal of the European Union. L 267. 10.10.2009. P. 7—17. Court of Justice of the European Union PRESS RELEASE No 128/15. URL: https://curia.europa.eu/jcms/upload/docs/application/pdf/2015-10/cp150128en.pdf O razvitii tsifrovoy ekonomiki: Dekret Prezidenta Respubliki Belorus ot 21.12.2017 No. 8. URL: http://president.gov.by/ru/official_documents_ru/view/dekret-8-ot-21-dekabrja-2017-g-17716/ [in Russian]. V instytuti Patona pratsiuvala nezakonna fabryka Bitcoin. Informatsiinyi Aktsent. URL: https://www.infa.ua/v-insty-tutipatona-pratsyuvala-nezakonna-fabry-ka-bitcoin/ [in Ukrainian]. Prokuratura y SBU vyluchyly v Kyievi 400 bitkoin-ferm. Informatsiinyi Aktsent. URL: https://www.infa.ua/v-insty-tutipatona-pratsyuvala-nezakonna-fabry-ka-bitcoin/ [in Ukrainian]. Pro obih kryptovaliuty v Ukraini: proekt Zakonu Ukrainy vid 06.10.2017 No. 7183. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=62684 [in Ukrainian]. Pro stymuliuvannia rynku kryptovaliut ta yikh pokhidnykh v Ukraini: proekt Zakonu Ukrainy vid 10.10.2017 No. 7183-1. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=62710 [in Ukrainian].
Several years after the inception of the most dominant cryptocurrency, bitcoin, the European Central Bank in 2015 indicated the need for establishing legal clarity by relevant authorities through explaining how the current legal framework applies to cryptocurrencies. Three years later, no meaningful step has been taken by any of the European Union (EU) institutions including the parliament. By examining the EU’s legal framework governing payments services, including the Single Euro Payment Area (SEPA) Regulation, the Electronic Money Directive, the Payment Services Directive and the proposed AML/CTF Directive, this article concludes that (a) because the existing payment services laws apply to payments effected in currencies (legal tenders) and cryptocurrencies are not defined as currencies under the EU law or the laws of member states, they do not cover cryptocurrencies. It also argues that it is impossible to design sui generis payments services law for cryptocurrencies without curbing their essential features, especially decentralization. Lastly, the article proposes centralization and the creation of state cryptocurrency as possible solutions moving forward and examines their strengths and challenges.
British Financial Supervision and Control Authority has identified new technologies as a component of fintech. These components include regtech, insurtech, blockchain. These new areas of the market development are incomprehensible to a wide range of people. However, this area attracts venture capital which is actively growing worldwide. The prospects of development of these areas are interesting for many reasons: reduction of financial costs for market participants, reduction of information processing time, security of financial transactions, information security and completeness. The article describes: objective reasons of the occurrence of such a kind of the product, risks of using these products and advantages of their introduction in all spheres of life, as well as the scope of regtech implementation.Keywords: Fintech, regtech, blockchain, insurtech
The article provides an analytical overview of cryptocurrencies, the dynamics of bitcoin from the origin to the present time. The specific risks of the virtual currencies use were identified.Keywords: bitcoin, cryptocurrency, risks, electronic money; financial technology.
In the Internet economy, with the help of cryptography, a branch of mathematics dealing with the security of information, as well as authentication and restriction of access to a computer system, a new digital coin as an alternative to national currencies appeared. In accomplishing this, using both mathematical methods (taking advantage of, for example, the difficulty of factorizing very large numbers), and quantum encryption methods. Throughout the world, information technology companies are focusing on information protection, inventing day-to-day methods with greater durability. In the horizon of Information Security, Quantum Cryptography has emerged, generating new possibilities in that field, hoping that data will be better protected and that the digital currency will resist over time and eventually evolve in the future, although Kurzweil, Bitcoin's pioneering technology is unlikely to be used in this respect. The idea of virtual alternatives to national currencies is not new, with advantages and disadvantages. The advantages of this coin are high payment freedom, transparency of information, high security, reduced risks for traders. Among the disadvantages we highlight the risk and volatility, the lack of notification and understanding, with incomplete functions, but which are developing, so Bitcoin is not perfect.
The purpose of this paper is to integrate quality management system, corporate social responsibility guidelines, United Nations Sustainable Development Goals, blockchain related documents and qualitative interview results from Hong Kong and Slovakia to design a set of social inclusive quality indicators within the context of the higher education sector. Three levels for social inclusive quality indicators in relation to blockchain content distribution technology in HE have been identified: governance with transparency, trust building with the sustainable community in needs fulfilment; industry innovations with risk and security audit mechanism. The contribution of this paper is to raise awareness of educators, industry practitioners and policy makers about the importance of social inclusion in blockchain technology. This study fills the gap through integrating system thinking, humanistic thinking and proactive thinking in the higher education context.
Recent declarations and investigations by the Securities and ExchangeCommission suggest that blockchain-based assets are potentially subject to regulation as securities under the Securities Act.This Article presents a systematic analysis of the risks and embedded costs of investments in blockchainbased assets and assesses their potential regulation as securities.This Article offers a comprehensive account of the pertinent properties of blockchain-based assets, the technology of the blockchain, the markets available for their trade, and their varied underlying sources of value.It identifies unique costs and risk factors inherent to the blockchain technology, and examines whether securities laws can potentially add value and protect investors from these unique risks.Identified costs and risks factors include controlling costs prevalent even in decentralized ledgers, monitoring costs that vary according to the costs of automatic verification, technology risks rooted in the vulnerability of the blockchain to bugs in its software, and systemic risks embedded in limited transparency and contractual rigidity of the blockchain-based investment contract.This Article examines these unique costs and risk factors and assesses their normative implications for securities regulation of blockchain-based assets.With current efforts by regulatory authorities to designate blockchain-based assets as securities, a coherent approach is presented based on the type of the offering, investors' profile, and the technical and legal contours of the blockchain-based
The article is devoted to the definition of problems using of blockchain technologies, and ways to overcome them to create distributed, secure applications. The paper considers the theoretical fundamentals of blockchain technologies and blockchain applications, new models of blockchain business, blockchain applications development platform, blockchain applications security, blockchain applications development problems, prospects for further research. The analysis of recent research and publications in the field of blockchain technologies are made in the article. Based on this analysis, it was determined that the blockchain industry has not yet completed the process of generating a generally accepted multilevel technology description. The overview of existing models of business blockchain, their characteristics and areas of application are done in the article. Software tools for creating and maintaining blockchain applications are considered. The article deals with the features, advantages and problems of using blockchain technology for creating distributed, secure applications. The problem of integration of new and existing private systems with an open blockchains is considered. A possible solution to this problem is the creation of a blockchain authentication service to implement a global security level. Such a service can become a standard security infrastructure for new models of mixed private and public systems that will be useful to all participants in different areas of the economy. The directions of development of protected blockchain applications in the sphere of public administration and private business in Ukraine are determined. In addition, the priority tasks that need to be solved for successful implementation of technology in Ukraine are determined based on the analysis of the current state of development of blockchains. There are three main areas of development of blockade technology: standardization, application security and integration of block systems with existing private systems and modern technologies of artificial intelligence, large data and the Internet of things, and described prospects for further research for them.
Bitcoin: Opportunities and Threats for UkraineThe information technology world is constantly evolving.And Bitcoin has become one of the greatest innovations in economic decentralization since the late 20th century.Bitcoin is the first decentralized digital currency, which can be used through the Internet.Every country should decide what Bitcoin means for them: possibility or threat.First of all, Bitcoin has significant advantages for investors, companies, employers and employees, they are: solution of the problem of assets centralized nature; bilateral dealing system; it is not affected by inflation; geographic independence for transactions; transparency of bitcoin processes; comparative safety of cryptocurrency wallets; transaction fees and time level in comparison to SWIFT or SEPA; solution of the"double spending problem" of electronic currencies.The possible advantage for the country in case of bitcoin legalization is new business activity and new tax registration.It is important to notice that cryptocurrencies were created to be uncontrolled by any financial institutions.So the superfluous interference of the government can have detrimental effect on the development of this type of currency as a way of effective payment and accumulation facility.However, Bitcoin has some disadvantages: lack of awareness and understanding for society; risk and volatility caused by limited amount of coins and high demand; complexity and cost of cryptocurrency mining.The main threats of bitcoin distribution in Ukraine are: reduction of the state control over currency transactions and decrease of the importance of the existing currency circulation system in settlements between counterparties for goods delivered and services performed.Bitcoin is the most popular cryptocurrency in the modern world, but, despite the achieved heights, it is in the phase of development and constant improvement.Considering the facts above, we can draw the following conclusion: the importance of bitcoin should not be underestimated for Ukraine with its developed shadow economy and instability in the east of the country.This can lead to the even greater share of shadow market and reduction of legalized transactions in the field of international payments.A careful study of the currency features and analysis of its advantages and disadvantages allow to conclude that it is impossible to effectively combat the expansion and development of the cryptocurrency in the world economy.Therefore, it is advisable to take it for granted and to take the process of its development under control by adopting appropriate legislative framework and establishing the main directions for its using in the national economy.
Valentyna Kostyuchenko, A. Malinovskaya, Anastasiia Mamonova
Introduction. The worldwide expansion of digital technologies and the development of the cyber economy led to emergence of a new digital assets – the cryptographic currency that rapidly growing popularity. The phenomenon of cryptocurrency is relatively new and little investigated. \n \nPurpose. The purpose of the article is to substantiate the preconditions for the introduction of accounting and taxation of transactions with cryptic currencies in Ukraine. \n \nResults. The article considers the economic preconditions for the introduction of accounting and taxation of cryptocurrencies transactions in Ukraine. The definition of the economic content of cryptocurrency has been researched. On the basis of the definitions analysis, an author’s definition of cryptocurrency is proposed. In particular, the cryptocurrency is understood as the digital (virtual) currency, with the unit “coin”, which is emitted in the network according to certain principles of cryptography to provide transactions and control the creation of new coins. \n \nThe advantages and disadvantages of cryptocurrency as a digital currency have been analyzed. The common and distinctive characteristics of cryptocurrencies and gold were determined. The mechanism of cryptocurrencies functioning was disclosed and a glossary of terms used in cryptocurrencies transactions was provided. The cryptocurrencies development in the world and in Ukraine was investigated. Legal and tax bases for the cryptocurrencies introduction into the activities of small business entities was given. \n \nConclusions. The cryptocurrency exists outside the jurisdiction of Ukraine and in the majority world countries. The state should adopt it, acknowledge either as a digital (virtual) currency or as another digital asset, to regulate the taxation system and introduce an accounting methodology of cryptocurrencies transactions for integration into the global economic environment.
Essence of cryptocurrencies is considered in the article, their risks and prospects of development in Ukraine and world. Advantages and disadvantages of crypto currency are described. Positions of foreign central banks and other financial regulators are lighted up in relation to cryptocurrencies and markets of cryptocurrencies. It is offered, that the experience of Japan, Switzerland, the United States and England in this question should be used as a fairway. It is marked that corresponding activity and financial services must be licensed by the state as a type of professional activity on the stages of formation of cryptocurrency (mining) and support of its circulation (trading and financial consulting).
The aim of the article is a comparative legal study of laws and regulations that determine the legal principles for the regulation of cryptocurrency circulation in some foreign countries and in Ukraine and, on this basis, a definition of ways to improve domestic legislation in this sphere. The subject of the study is an interrogation of legal regulation issues of cryptocurrency circulation in Ukraine. Methodology. The study is based on a legal comparison of the regulation of cryptocurrency circulation in Ukraine and in foreign countries. Based on a comparative legal study of certain provisions of Ukrainian legislation, the possibilities and limits of implementation of positive foreign experience in this sphere are determined. The results of the study revealed that to implement foreign experience for the legal regulation of cryptocurrency circulation, it is necessary to postpone the final transition to a floating rate regime by reinforcing state interference. Moreover, it is necessary to strengthen currency control not only for currency transactions with cryptocurrency but also for the activities of entities that determine the state policy on cryptocurrency regulation, as well as operate respectively using instruments provided for by the regulations of the current legislation. Practical implications. The positive experience of the formation of the foreign exchange market in other countries demonstrates that the gradual transition to cryptocurrency circulation is the beginning of the natural market rate, the balance of payments and gradual liberation of the national economy from the pressure of administrative and corruption restrictions. Relevance/originality. The legal analysis of the regulation of cryptocurrency circulation in Ukraine and the definition of problems is the basis for developing the most promising directions for the development of domestic legislation in this sphere.