Blockchain Papers

T.P. Kozar

No abstract is available for this record.

Андрій Макурін

The article deals with constructing an asset accounting process and an algorithm for recognizing an object as an asset. The main approaches to the reflection of cryptocurrency in financial accounting are analyzed. The study showed that International Financial Reporting Standards (IFRS) still lack specific clarifications on the correctness of accounting and recognition of cryptocurrencies. Cryptocurrencies are suggested to be recognized as, intangible assets on the one hand, and as inventories, on the other. The research shows that before starting the process of accounting for any asset, it is necessary to determine, whether such a resource meets the definition of an asset. The article proves that cryptocurrency is an asset. However, attaching cryptocurrency to a certain group of assets turns out to be rather problematic. The main approaches to doing it are analyzed. Speaking formally, cryptocurrency is considered to be cash or cash equivalents. Cash and cryptocurrencies have been compared, and the main distinguishing features of these two assets have been considered. The conclusion is made that cryptocurrency should be evaluated at fair value, indicating the date of evaluation to fix actual market conditions. The measure of cryptocurrency when reflected in the financial reporting is the US dollar or its equivalent in the national currency as at the balance sheet date. The research has shown that depending on the type of the enterprise activity, cryptocurrency should be determined in the financial reporting, or the «balance sheet», as «intangible assets» (line code 1000), and the primary value of such an asset corresponds to line 1001, or inventories (line code 1100). Also, if the company’s accounting policy states that cryptocurrency is a financial investment, it should be reflected in line 1160.

Jurii Bilous

Decentralization reform includes a number of other reforms, including education reform, which is one of the most important. The main results of the reform of secondary education are: the introduction of the New Ukrainian School, the change of the system of management and financing of institutions, as well as the creation of educational districts and basic schools. Optimization of the network of general secondary education institutions (GSEI) is an important element on the way to quality educational services. When optimizing the network of GSEI, it is necessary to take into account a number of factors, among which the most important are: quality of transport routes, distance of transportation of students, number of students who will need transportation, material and technical base of institutions (availability of computer classes, gym and classrooms), staffing of the library fund, the quality of teaching staff and others. As of September,1 2019 there were 402 educational establishments with 105483 students in Chernivtsi oblast. Currently, 14 basic educational institutions and 22 branches have been established in Chernivtsi oblast. Among the raions, the largest number of basic educational institutions have been established in Hertsa raion. No basic educational institutions have been established in Putyla and Hlyboka raions, as well as in the city of Chernivtsi. A total of 7,354 students study in basic institutions and their branches. To test the method of optimization of the network of GSEI, we chose Kitsman raion of Chernivtsi oblast, which is optimal for the oblast and Ukraine in general on various indicators: demographic characteristics; the size of the raion; features of the transport network; the number of GSEI and students enrolled in them and others. Currently, there are 2 basic institutions and 2 branches in Kitsman raion. After analyzing a number of indicators (level of institutions, peculiarities of the institution location, number of students who will need transportation, area of student premises, material and technical base, staffing of the library fund, qualification of pedagogical staff and quality of graduates’ knowledge), we propose to optimize Kitsman raion network of GSEI, by means of establishing of 12 educational districts, 11 basic institutions and 26 branches. In most educational districts of Kitsman raion we propose to create one basic institution, only in Kitsman educational district – two, and in Shypyntsi and Luzhany educational districts not to create any basic institution at the moment.

T. V. Paliichuk

The article is aimed at disclosing the issue of financial support for the construction, reconstruction, repair and maintenance of motor roads in the context of implementation of budget decentralization and decentralization of road management. The article specifies the steps taken towards implementation of decentralization in the sphere of road infrastructure of Ukraine and the introduction of budget decentralization: distribution of functions and powers in the road sphere at the subregional level of management and the updated mechanism of financing the road industry. Both the dynamics of formation and distribution of the State Road Fund and the status of distribution of subvention on the streets and roads of settlements are analyzed. The vision of the main risks of financial support for the maintenance of streets and roads of communal property in settlements in 2021 is disclosed. The directions of improvement of the system of financial support for the construction, reconstruction, repair and maintenance of motor roads are proposed, including in particular: the need to deepen diversification of sources of formation of the State Road Fund; consolidation of the proper guaranteed part of the State Road Fund’s costs for the maintenance of streets and roads of communal property in settlements; balancing the expenditure load and financial support for the implementation of road projects; increasing the level of transparency of decision-making in the distribution of financial resources intended for the construction, reconstruction, major, ongoing repair of motor roads.

Valerii Yankovskyi, Мaryna Shendryhorenko

The article is aimed at studying the essential component of decentralization and budget revenues; determining the main results of the implemented reform of budget decentralization in Ukraine; analyzing the current situation of own revenues of local budgets. The following general scientific methods were used in the research process: theoretical generalization, comparison and grouping – to determine the essence of the concepts of «budget revenues», «decentralization» and disclosure of components of budget revenues; analysis – when considering own revenues of local budgets for 2014–2020 and the structure of incomes in the revenues of local budgets for January – July 2020; system approach – in the formation and disclosure of the essences of the main stages of the reform of budget decentralization in Ukraine. The views of various scientists on the concepts of «budget revenues» and «decentralization» are examined. It is determined that budget revenues are an aggregate of financial relations that participate in the process of distribution of part of GDP in order to form targeted cash funds at the level of the State and local self-government bodies, designed to finance their own functions and obligations defined in accordance with the current legislation. The main components of budget revenues are determined and their classification is provided. The main stages of the budget decentralization reform in Ukraine are defined and systematized, their detailed characterizations are provided. The analysis of own revenues of local budgets for 2014–2020 and revenues in local budget revenues for January – July 2020 was carried out, during which it was determined that local taxes, despite the introduced budget decentralization, comprise only about 30% in the structure of incomes in the revenues of the general fund of local budgets, while in some countries of the European Union this figure reaches 50–60%. Practical steps towards further implementation of the budget decentralization reform for local self-government bodies are proposed.

Вячеслав Ляшенко, Наталія Трушкіна

At present, the industrial park as an effective mechanism for the implementation of the regional economy needs transformational transformations and modernization changes in industrial production, which will help increase the competitiveness and sustainable development of local communities. The purpose of this study is to develop proposals for institutional support for the formation and operation of industrial parks at the level of integrated territorial communities in a decentralized and smart specialization, taking into account existing international practice. To achieve this goal, methods of analysis and synthesis, induction and deduction, comparison, system approach, systematization, structural and logical generalization were used. The article studies and summarizes the international experience of creation and development of industrial parks. The tax and customs privileges provided to industrial parks in different countries of the world are defined. The legal aspects of creation and functioning of industrial parks in Ukraine are analyzed. The main barriers that hinder the formation and localization of industrial parks at the level of united territorial communities have been identified. The structural and logical scheme of the concept of creation and functioning of industrial parks in Ukraine is constructed. Regional development strategies for 2021-2027 are considered. Based on the analysis, it is established that in a significant number of strategic documents the priority areas include accelerating the achievement of competitiveness and innovation of the region’s economy on the basis of smart specialization. Regional strategies do not address the creation of appropriate conditions for the formation of the institutional environment for the development of industrial parks. Therefore, it is advisable to make changes and additions to the Strategies of regional development until 2027, the content of which is to include a set of measures to intensify the development of industrial production and the formation of a network of industrial parks. An analysis of the financing of industrial parks in Ukraine has been performed. Proposals are provided, the implementation of which will improve the institutional and investment-financial support for the creation and development of industrial parks at the level of territorial communities.

Я. Журавель

The author of the article has outlined the problem of finding the most optimal model of the state for of government, because the necessary condition for stable development of society and effective functioning of the state is to ensure the balance between national interests and the interests of the population of regions and territorial communities. The preconditions, political history and periods of the formation of decentralized power in most European medieval states, scientific positions of national and foreign legal scholars on the expediency of implementing decentralization have been analyzed. It has been found out that the vast majority of Western European countries abdicate the unitary state model by introducing decentralization. The leading idea of reforming is to move the center of solving local issues to the local and, in particular regional level that is achieved by optimizing relations between different levels of territorial organization of power. National traditions, formation and functioning of public agencies in the past, specific features of administrative and territorial structure of the state, existence of autonomous territories, multiethnic population have a significant influence on the formation of the constitutional system on the basis of decentralization in the EU countries. The positive experience of Denmark and France has been studied. The author has theoretically substantiated that the principle of decentralization has been successfully implemented in the practice of the European Union countries. It has been indicated that the prerequisite for the successful implementation of decentralization processes to create an effective model of governance within the system of decentralized government of Ukraine is: the establishment of the rule of law principle; recognition and guarantees of local self-government; equal legal protection of all forms of ownership; democratic and effective electoral legislation; independence, efficiency, accessibility and transparency of the judicial system, functioning of administrative justice institutions; perfect budget process and high financial discipline; availability of adequate social standards; developed public sector and stable tendency towards its development.

Hanna Danylchuk, Oksana Kovtun, Liubov Kibalnyk, Oleksii Sysoiev

The paper focuses on monitoring and modelling of the cryptocurrency market. The application of the chosen research methods is based on the analysis of existing methods and tools of economic and mathematical modelling of time series research on the example of the cryptocurrency market. It is proved that the use of individual methods is not relevant, as they do not give an adequate assessment of the specified market, so a comprehensive approach is the most acceptable. Therefore, monitoring and modelling of some cryptocurrency pairs with different capitalization degree were implemented by fractal and recurrent methods of the financial markets. The daily values of currency pairs for the period from September 2015 to November 2019 were chosen as information basis for monitoring and modelling. The use of R /S modelling method make it possible to conclude the persistence of time series of the selected cryptocurrencies indicating that the market trends are clearly defined, the currency pair of XRP/USD has the highest level of trend resistance. To compare the obtained results, the comprehensive approach is offered using recurrent diagrams that help to determine the cryptocurrency stability. The results of modelling by the recurrent method show that the most stable cryptocurrencies are the ones with the highest capitalization, namely Bitcoin and Ripple.

Ihor Fedorovych Molotok

This paper summarizes the arguments and counterarguments within the scientific discussion on the influence of fiscal decentralization measures on the management of innovative country development. The main purpose of the research is to test the hypothesis that expenditure and revenue decentralizations have a positive impact on the management of innovative country development. Testing the hypothesis considers realization of panel data regression analysis, and consists of several stages, such as: 1) elimination of control variables multicollinearity based on the correlation analysis; 2) identification of the regression model specification (fixed or random effects model) with the help of Hausman test; 3) realization of the regression analysis and characteristic of its results (confirmation or rejection of the hypothesis). It also should be noted that country sample consists of 12 unitary European countries (Czech Republic, Denmark, Estonia, France, Hungary, Italy, Latvia, Lithuania, Poland, Slovak Republic, Slovenia, and Ukraine). Time horizon – 2008-2018. Global Innovation Index is a measure of innovative country development. At the same time, the ratio of local budget revenue to consolidated budget revenue, the rate of domestic budget expenditure to consolidated budget expenditure, the proportion of local budget tax revenue to gross local budget revenue are measures of fiscal decentralization in the research. There are also selected a set of control variables that often used in economic growth models and reflect macroeconomic perspectives of country development. However, the practical realization of the stages, as mentioned above, allow identifying that fixed effect specification of the model is more appropriate in all three cases (for three different measures of fiscal decentralization). Panel data regression analysis allows confirming the hypothesis on the positive impact of revenue fiscal decentralization and the negative impact of expenditure decentralization on innovative country development. In turn, there is no statistically significant cohesion between ratio of local budget tax revenue to gross local budget revenue and Global Innovation Index. These findings in terms of fiscal decentralization reform might be considered in order to ensure a balance between power (expenditures) redistribution from central to sub-central governments and local budget financial capacity. While in terms of innovative country development, it should be considered that the lack of local budget financial resources to cover all redistributed from central government level powers makes it impossible to invest in the development of innovation. However, the increase of local government financial capacity creates opportunities not just for essential functions financing but also advanced features investment such as innovative development. Keywords fiscal decentralization, innovation development, local budget expenditures, local budget revenue, local community.

Halyna Voznyak, Iryna Zherеbylo

Introduction. The initiated processes of administrative and financial decentralization in Ukraine have actualized the issues of modernization of the social sphere in general and its key segments, among which education occupies a prominent place. Purpose is to identify the features of the current state of functioning of the education sector and outline the directions of its reform in the conditions of decentralization. Results. The article presents a problem-oriented analysis of the functioning of the education sector in terms of its components: preschool and secondary education, vocational education and higher education, as well as the management and financing of science. The main problems that are characteristic of the field are identified, among which the imperfect mechanism of financing, built on directing the funds for the maintenance of educational institutions, and not ensuring the quality of education according to the principle of "money go after the child", the lack of incentives for professional development of teaching staff, etc., are highlighted. The specifics of functioning and financing of pre-school education by united territorial communities, peculiarities of use of educational subvention are revealed. The problems of vocational education and the need to change approaches to its organization were emphasized. The analysis shows that, despite the positive changes and new opportunities that have emerged in the field of education and due to administrative and financial decentralization, there are risks of not achieving the planned goals. These include: low financial capacity of communities, lack of established standards of educational funding, conflicts about school closures, shortages of professionals with education and work experience who could exercise new authority and manage the on-site education process, and divide responsibility for quality of learning. Possible directions of improvement of the sphere of education are outlined.

A.G. Luchkin, О.Л. ЛУКАШЕВА, Н Е Новикова, Vitalik Melnikov · 6 authors

The subject of the study is cryptocurrencies from the perspective of the possibility of using them as a means of payment in the context of economy digitalization. The aim of the work is to assess the possible consequences of the further spread of cryptocurrency in the global financial system and to find ways to overcome them. The article analyzes the history of the emergence and development of money circulation systems from the gold standard to modern conditions for the emergence of cryptocurrencies, and also discusses the possibilities of using cryptocurrencies in fraudulent schemes. As a result of the study, the following tasks were solved: a historical analysis of money circulation systems was carried out; modern trends in the development of modern payment systems were revealed; the possibilities of using electronic and virtual money in modern conditions of digital economy development were analyzed; digital fraud opportunities were evaluated; the ways of regulating cryptographic money turnover were revealed. A historical analysis of monetary systems development enables to identify the objective reasons for the emergence of cryptocurrencies and the need to develop a legal and economic mechanism for their regulation in the digital economy development. Description of cryptocurrency fraud schemes enables to identify possible ways to stop them. The problem of organizational development of the settlement of relations in the field of cryptocurrency exchange, which will prepare the Russian financial system, reduce potential risks and learn how to use the benefits arising from the cryptocurrency turnover, is being solved.

Anastasiia Ovcharenko

Овчаренко А.С

L. Byvsheva, O. Kondratenko, Yu. Samsonenko, M. Harasaylo

The article considers the strategic directions of financing the social sphere. It is determined that the effectiveness of the provision and financing of social services depends on the effectiveness of regional and local authorities and their ability to fulfill certain powers and responsibilities in a decentralized environment. At the same time, the processes of social policy reform are carried out in parallel with the process of strategic choice of the most effective model of development of the social protection system, which leads to losses and reduced efficiency of the system. The research of directions of budgetary financing of social sphere at the state level is carried out. The financial mechanism of realization of social protection which provides formation of the sources of the financial resources directed on performance of the corresponding programs and actions, and also the substantiated choice of methods, forms and levers of their use is investigated. The development of social services in the united territorial communities of Ukraine as of October 10, 2019 is analyzed. Expenditures on social protection and social security in the expenditures of the consolidated budget and GDP in Ukraine in the analyzed period are studied. Analysis of the state of filling local budgets in the context of decentralization in recent years has shown an increase in local budget revenues, which has created additional conditions for increasing funding for the social sphere from local budgets. It is determined that the main strategic directions of improving the mechanism of financial support of the social sphere in the conditions of decentralization should be: strengthening the responsibility for misuse of funds; optimal delimitation of spending powers between authorities at all levels; involvement of non-governmental organizations in the provision of social services in order to improve their quality, etc.

Tetiana Tarasova, Olga Usatenko, Андрій Макурін, Valentyna Ivanenko · 5 authors

The objective of this paper is to determine the basic features of the use of mathematical modeling of the system to forecast cryptocurrency exchange rate. The study determines that cryptocurrency is the simplest investment asset being and, at the same time, the riskiest one. Advantages and disadvantages of cryptocurrency use are specified. Advantages include: code openness, anonymity, decentralization, emission, and reliability. Disadvantages include lack of guarantees, instability, risk of prohibition and possible loss. A model to forecast bitcoin cryptocurrency exchange rate is proposed and substantiated mathematically. The observations are the basis to develop a hypothesis: the faster the cryptocurrency (e.g. bitcoin) is mined, the more difficult it is to forecast bitcoin cryptocurrency exchange rate. Certain factors emphasize which may affect the cryptocurrency exchange rate: trade wars of the USA with other export-oriented world economies (China); advent of IEO as the alternative for ICO and new drivers connected with the interest in cryptocurrency; FATF recommendations for market control, the entry of world giants (e.g. Facebook) into the crypto-market and the development of the stablecoin market.

Britchenko Igor, Maksym Bezpartochnyi, Natalia Maslii

The purpose of the article is to analyze the prerequisites, advantages, problems and prospects for the development of the processes of financial decentralization in Ukraine. Initially, the article reveals the features of the federal and unitary arrangements of states. As research has shown, the principles of fiscal federalism have been increasingly used by unitary states. The legislative and normative legal acts regulating the implementation of the decentralization policy in Ukraine are justified and given. Characteristics of the formation of new structures, such as: united territorial societies and their sources of financing are characterized. Changes in incomes in local budgets as a result of decentralization are analyzed, and their significant growth is observed. The mechanism of horizontal leveling of the tax ability of territories has been developed, which helps to remove imbalances and unevenness, most of the budgets of Ukraine are recipients of budgetary funds, since they receive a basic subsidy. The influence of the development of information technologies on entrepreneurial activity in small towns and villages is determined. Information technology is a tool of points of growth of territories. Decentralization will not gradually increase due to urbanization processes, but will be accompanied by new development mechanisms, where the labor force and the means of production will unite and help create a qualitatively new environment.

D.S. Zakharova

No abstract is available for this record.

Оlha MALINOVSKA, Уляна Моторнюк

Introduction. Transformation processes in Ukraine dictate the need to formulate such a concept of state financial policy, which would be the beginning of economic growth. This primarily leads to the creation at the territorial level of strong economic and financial systems that can independently solve local socio-economic problems. It is necessary to determine the role of material and financial support in the life of local self-government, the boundaries of a harmonious combination of economic feasibility of the existence of territorial communities with the main goal of the existence of local self-government in general - to meet the basic vital needs of citizens at the place of residence. The purpose of the paper is to study and analyze the material and financial provision of local communities during decentralization. Results. The analysis of the essence of the concept of "material and financial basis of local self-government" suggests that it is quite multifaceted. In some cases, it focuses on its economic essence, in others it is legal. Although the link and the significance of both spheres are evident. This is also explained by the dual nature of property and finance, namely, economic and legal. Principles of the formation of the material and financial basis of local self-government are the initial principles, ideas and principles, which are the basis of the organization and activity of the territorial communities, the population, representative bodies which they are formed, local executive bodies, caused primarily by the essence of local self-government those involved in the management of local material and financial resources. On the one hand, the material and financial basis is divided into two parts: material and financial. On the other hand, the components of the material and financial basis of local self-government are: first, communal or municipal property (in Ukraine, the communal property is recognized and regulated by law); and secondly, revenues (revenues) of local budgets and other funds; and thirdly, another property that is designed and used to meet the local needs of the population. Conclusion. Considering that the right to education, medical care guaranteed, guaranteed by the constitution, etc. should be ensured, and in order to prevent a biased distribution of financial resources in budget calculations, it is necessary to organize work on the calculation and consolidation at the legislative level of normative indicators of financial support of existing state social standards.

Iryna Zastrozhnikova

The article considers the main aspects and problems of transforming an educational network in the current context of decentralization. Reference is made tothe urgent need of restructuring the responsibilities in education management between the center and regions providing the latter with independence in finances, organization and management at the regional level. It is emphasized that extending powers of the local executional bodies in management of educational institutions is the primary purpose of decentralization process. There was examined a pattern of decentralizing the basic education in Poland, according to which it was recommended to oblige the local self-government bodies to implement the education politics according to the local needs, finding the school administration and continually appraise the quality of education. It has been observed that currently the essential functions of state in education are assigned to the regional state administrations, regional and local educational departments. The local authorities are burdened with responsibilities of financing and providing the social security for children, defining the network of training institutions, maintaining their records and performing control over their activities. The author points out that at present the local and regional authorities duplicate the functions of the Ministry of Education and Science of Ukraine, which is non-effective. The author believes that the local government officials are able to perform political management well up to the officials of educational departments and administrations. However, prior to assignment of new obligations, it is necessary to develop and implement an effective retraining program for personnel and staff of the municipal structures. There have been reviewed the results of the pilot project: «Decentralization: education reforms at the local level», which experts had been analyzed the consistency of educational network. It pointed to the major areas of concern for the education reforms in local communities, namely a significant expense side of budget for education financing, low level of education in rural students according to the data obtained from the independent external assessment, and lack of subject oriented teachers. The author makes a conclusion that the purpose of decentralization in education should be an overall improvement of educational services and be based upon the following basic principles: students’ right to have a free choice of educational institution, equal access to good-quality education services, decent conditions to develop their abilities, improving the quality and efficiency of the educational process, effective use of types of resources.

A. A. Makurin

The stages of formation and theoretical background of cryptocurrency have been explored in the article. It has been established that the focus of the operation and use of such a specific financial asset is the protection of cash against the depreciation that occurs during political and economic fluctuations. But this is another kind of modern money, namely, stalk line. The main processes that have taken place in the IT field, which has influenced the further development of the monetary system worldwide have been reflected in the article. There is no unified system in the EU for cryptocurrency transactions. The technologies used to create any kind of cryptocurrency have been researched by the scientists of the advanced countries in the last century. Nowadays, modern blockchain technology is an improvement of the past. Each country has its own peculiarities and approaches to the recognition or non-recognition of cryptocurrency. The problem with the use of modern money is to determine the issuer. Cryptocurrency and electronic money have some things in common and distinctive. It has been determined that the use of cryptocurrency for the purposes of storing savings and payments is gaining popularity despite the problems of economic, tax and legal regulation. The market capitalization of bitcoin is compared with the leading economies of the world. Bitcoin capitalization is found to be higher than some countries' GDP. The basic aspects of cryptocurrency functioning are revealed. The main method of scientific research is the empirical method, which allowed to make several observations on the changing attitude of countries to cryptocurrency. The measurement process made it possible to understand the volume of the bitcoin market. As a result of scientific literature, cryptocurrency as electronic money is found to be a non-personalized payment instrument and is rotated outside the banking system electronically, which is why it implies that the state cannot control this process, which is why national banks of many countries with distrust treat that kind of money. The countries of the world, at their discretion, make changes in tax and legal law.

Grigory O. Krylov, В. М. Селезнев

The article analyzes the main reasons for the slow adoption of blockchain technology, in particular, in the financial sector. The authors critically analyzed the main declared properties of blockchain technologies: trust, security, decentralization, immutable data storage, lack of intermediaries, hardware protection against attacks, and openness. The aim of the study are to show that these blockchain properties are overestimated, the expectations of its adoption are inflated, and the delays in its adaptation outside of cryptocurrencies, in particular, in the financial sector, are natural. The article is based on a methodology for the qualitative and quantitative analysis of scientific publications and statistical sources on the blockchain adaptation from the perspective of the theory of diffusion of innovations, the conditions and the specifics of economic and sociological approaches for consensus-building. The study resulted in the following new systemic findings. Blockchain and distributed ledgers are not fundamentally new technologies. In general, they do not have the properties of the immutable data storage, trust, anonymity, low transaction and adoption costs. All current consensus technologies have fundamental faults. Cryptocurrency technology is original, but it was a private experimental solution to a specific ideological problem of the libertarian political agenda. Consensus does not provide trust. Delayed blockchain adoption, in particular in traditional financial institutions, is natural, since the technology does not show better results than current digital solutions, and traditional economic institutions have greater public trust. The practical implications of the findings are that they may be used by investors.

Anastasiia Mamonova

Observing the rapid uptake and active use of virtual currencies that are not found in every country in the world, regulators are asking questions about the ability to control and regulate their operations. Therefore, the article describes approaches to determining the economic nature of virtual currencies and analyzes their legal regulation and transactions with them in the world and in Ukraine. The status and official attitude of the regulatory bodies of different countries, consolidation of legislation and taxation of virtual currencies are reflected. In recent years, there have been significant changes in the attitude of most cryptocurrencies in most of the leading countries of the world, from “illegal payment” to “promising financial instrument”. The increasing interest of government in progressive innovation has led to an increase in the influx of new entrants (both individuals and institutions) who are actively using virtual currencies. Yes, cryptocurrencies have caused a lot of concern about the risks they may bring since the first digital currency, Bitcoin. Over a period of time, cryptocurrency exchanges have been steadily increasing their interest in underwriting to ensure the secure process of exchanging and buying cryptocurrencies, reducing theft. Virtual currencies contain a large amount of capitalization in terms of fiat currencies, but the disorder and even the unstable state of cryptocurrencies, as well as the lack of historical loss data, complicate the process of controlling their turnover. However, given the interest, popularity and attention of the media, many, including lawyers, political scientists, economists, are trying to understand the basics of technology and its implications for politicians and other departments. The development of blockchain-based cryptocurrency technology has been introduced in areas that have traditionally been widely regulated, such as capital raising and money transfer. Politicians and other government officials often try to apply laws that have been developed for decades for the latest technology. The US in each state has a different definition and approach to cryptocurrency transactions. A similar situation is observed in the international arena, where some countries have sought to promote the growth of technology and others have sought to remove technology from their jurisdiction. Therefore, the legal field of law requires in-depth research and analysis on virtual currency transactions, the development and implementation of a new cryptocurrency exchange rate verification mechanism that is similar to those existing for traditional financial processes.

Iryna Prikhno

It has been proved that in the context of financial decentralization, existing mechanisms of territorial financial resources formation and use of need improvement.The purpose of the study is to identify the positive and negative effects of financial decentralization in Ukraine and to find effective sources of local budgets replenishment to increase the level of socio-economic development of the territories.The dynamics of local budget revenues are analyzed in terms of budgets of the united territorial communities. It has been found that local government general fund’s own revenue tends to increase, although the annual growth rate of local government general fund’s own revenue is somewhat slowing. The process of decentralization in Ukraine is characterized by a rapid increase in the total number of united territorial communities. The rate of united territorial communities’ budgets own revenues growth is the highest in comparison to other local budgets.The structure of own income of the united territorial communities is investigated. It is revealed that the income of the territorial communities is generated mainly by income from the personal income tax and by local taxes and fees.It was found that the amount of state support for the development of territorial communities and the development of their infrastructure is significant and has a steady upward trend. In the structure of state financing of local self-government in Ukraine subsidies for socio-economic development and for development of medicine in rural areas, and financing by the State Fund for Regional Development prevail.A number of measures are proposed that will contribute to the growth of financial support for the socio-economic development of the territories.

Дмитро Ігорович Погрібний

The article discusses current approaches to determining the legal status of cryptocurrencies in order to create effective mechanisms of economic and legal support for their use in Ukraine. Attention is drawn to such a necessary factor as cooperation in the digital sphere between the state, individuals, and groups in the context of the «digital interdependence» paradigm, which was formulated at the #EuroDig2019 UN Digital Interdependence Report. The process of transformation of existing approaches to defining the economic and legal nature of cryptocurrencies by leading countries and international financial regulators is analyzed. The advantages and disadvantages of using cryptocurrencies have been systematized, as well as the genesis of such cryptocurrency as Bitcoin. It is determined that cryptocurrency is a new stage after the first electronic money, as well as the main advantages of its use, namely: instantaneous speed of payments (from a few seconds to several minutes); absence of transaction commission; anonymity of calculations; irreversibility of payments; no need to convert to the currency of the country of production of payments, a high degree of security of operations. The previous attempts of public authorities in Ukraine to establish a legal regime for the cryptocurrency market by adopting relevant regulatory legal acts in this area are analyzed. The ways of optimization of the legislation on cryptocurrencies in Ukraine are proposed in order to significantly enhance the innovative component of the Ukrainian economy and create competitive advantages for economic entities

Halyna Zabchuk, I. O. Pashchuk

Introduction. The rapid development of information technology is transforming the modern economic system. This is especially true of changes in the area of calculations and payments, as it is directly linked to economic development and the well-being of the population. Today, with the global economy volatile, changing public sentiment, distrust of financial institutions and interest in cryptocurrencies or virtual money is increasing. Governments and central banks of different countries are often very conflicted about the use of these innovations. Therefore, studying the cryptocurrency market and regulating it as a tool for making payments and payments will reduce the risk of cash flow loss to existing institutions and will have an impact on the financial system. Methods. The following methods are used during the study: analysis and synthesis; abstract and logical (theoretical generalizations and formulation of conclusions); methods of induction and deduction, comparative method and system-structural method have been applied in the study of the legal regulation of cryptocurrencies in different countries, to determine the main approaches to such regulation. Results. The nature, history of the phenomenon, as well as the advantages and disadvantages of cryptocurrency are examined in the article. Features of creation and production of this currency are revealed. The cryptocurrency market is growing rapidly, and the state, which has not adapted the tax code to the current challenges of the digital economy, is underperforming budget revenues, as cryptocurrencies are outside the legal jurisdiction. Today, there are over 2,000 different cryptocurrencies, so it is necessary to develop common standards for the regulation of cryptocurrencies. The legal regulation of electronic currency in different countries is analysed and the prospects of using cryptocurrency in Ukraine are investigated. Discussions. Due to technology improvements, legislation and improved infrastructure, cryptocurrency will play a significant role in people's daily lives, reducing cash flow and thus stabilizing inflation and the monetary system as a whole.