The article presents a comprehensive analysis of the legal framework for public procurement in Ukraine and the European Union through the lens of balancing transparency requirements with the protection of confidential commercial information. The key principles of the Law of Ukraine “On Public Procurement” and Directive 2014/24/EU, which establish the foundations of equal treatment, non-discrimination, proportionality, and procedural openness, are examined. The practical outcomes of the Prozorro electronic procurement system are analyzed; since its launch, the system has saved over USD 8.7 billion in public funds and increased the number of bidding participants from 14,000 to 140,000. The main corruption risks at various stages of the procurement cycle are systematized – from planning and needs formulation to tender evaluation and contract execution. Based on an analysis of international studies using the Analytic Hierarchy Process (AHP) and principal-agent theory, it is established that tender evaluation is the most corruption-prone stage, with information asymmetry being the key factor. It is shown that under martial law conditions, simplified procurement mechanisms necessary for operational efficiency simultaneously expand the space for abuse. The feasibility of applying zero-knowledge proof (ZKP) protocols as a cryptographic instrument that enables combining public verification of participants’ compliance with qualification requirements while preserving the confidentiality of their commercial data is substantiated. The main classes of ZKP – interactive protocols, zk-SNARKs, zk-STARKs, and Bulletproofs – their properties, trade-offs, and practical applications in financial compliance, identity verification, and anonymous whistleblowing systems are examined in detail. Specific scenarios for integrating ZKP into public procurement procedures are considered: proof of financial capacity without disclosing reporting details, confirmation of the absence of conflicts of interest based on encrypted registry data, verification of the correctness of electronic auction results, and authentication of the supply chain. Key implementation barriers are identified: regulatory recognition of cryptographic proofs as equivalents to traditional documents, technical complexity and institutional capacity, performance and scalability concerns, legal liability for protocol errors, and compliance with GDPR requirements. A phased model for integrating ZKP into the Prozorro infrastructure is proposed, and recommendations for necessary legislative and institutional changes are formulated, including updating the Public Procurement Reform Strategy for 2024–2026, establishing independent cryptographic audit mechanisms, and developing methodological guidelines for contracting authorities.
The article presents a comprehensive analysis of the legal framework for public procurement in Ukraine and the European Union through the lens of balancing transparency requirements with the protection of confidential commercial information. The key principles of the Law of Ukraine “On Public Procurement” and Directive 2014/24/EU, which establish the foundations of equal treatment, non-discrimination, proportionality, and procedural openness, are examined. The practical outcomes of the Prozorro electronic procurement system are analyzed; since its launch, the system has saved over USD 8.7 billion in public funds and increased the number of bidding participants from 14,000 to 140,000. The main corruption risks at various stages of the procurement cycle are systematized – from planning and needs formulation to tender evaluation and contract execution. Based on an analysis of international studies using the Analytic Hierarchy Process (AHP) and principal-agent theory, it is established that tender evaluation is the most corruption-prone stage, with information asymmetry being the key factor. It is shown that under martial law conditions, simplified procurement mechanisms necessary for operational efficiency simultaneously expand the space for abuse. The feasibility of applying zero-knowledge proof (ZKP) protocols as a cryptographic instrument that enables combining public verification of participants’ compliance with qualification requirements while preserving the confidentiality of their commercial data is substantiated. The main classes of ZKP – interactive protocols, zk-SNARKs, zk-STARKs, and Bulletproofs – their properties, trade-offs, and practical applications in financial compliance, identity verification, and anonymous whistleblowing systems are examined in detail. Specific scenarios for integrating ZKP into public procurement procedures are considered: proof of financial capacity without disclosing reporting details, confirmation of the absence of conflicts of interest based on encrypted registry data, verification of the correctness of electronic auction results, and authentication of the supply chain. Key implementation barriers are identified: regulatory recognition of cryptographic proofs as equivalents to traditional documents, technical complexity and institutional capacity, performance and scalability concerns, legal liability for protocol errors, and compliance with GDPR requirements. A phased model for integrating ZKP into the Prozorro infrastructure is proposed, and recommendations for necessary legislative and institutional changes are formulated, including updating the Public Procurement Reform Strategy for 2024–2026, establishing independent cryptographic audit mechanisms, and developing methodological guidelines for contracting authorities.
The article provides a comprehensive scientific analysis of the procedural status and jurisdictional powers of the European Public Prosecutor’s Office (EPPO) as the first autonomous supranational body of criminal justice. The long history of the institute’s formation is researched, starting from the 1995 initiatives and the 1997 «Corpus Juris» academic project, which laid the foundation for the codification of EU criminal law, to the publication of the 2001 Green Paper as a key consultative document for stimulating pan-European debates. Particular attention is paid to the role of the 2007 Lisbon Treaty, which, through the implementation of Article 86 TFEU, created a direct legal basis for the establishment of the body under the enhanced cooperation procedure using «accelerator clauses». The material competence of the EPPO in the field of PIF crimes is determined in accordance with Directive 2017/1371, in particular regarding large-scale VAT fraud, corruption, and money laundering, and doctrinal proposals for expanding the mandate to environmental crimes and terrorism are considered. The study emphasizes the unique nature of the office as a body sui generis with direct enforcement powers that distinguish it from traditional agencies. The organizational structure of the body, which combines central (College, Permanent Chambers) and decentralized (delegated prosecutors) levels, ensuring institutional independence from the governments of Member States, is analyzed. Through the prism of the case law of the EU Court of Justice (Taricco, G. K. and Others, Stan v EPPO cases), the mechanisms of cross-border interaction between the handling and assisting delegated prosecutors are revealed, and the priority of national courts in exercising judicial control over the acts of the prosecutor’s office is confirmed. Systemic risks of implementing the right of evocation caused by shortcomings of Article 25 of Regulation 2017/1939 are outlined, illustrated by conflicts of competence in Spain and Croatia. The dynamics of Ukraine’s integration into the supranational financial security system of the EU are investigated: from the 2022 Working Arrangement and memorandums with NABU and SAPO to the ratification of the Framework Agreement on the Ukraine Facility in 2024. The paper examines the legal implications of the 2024 Agreement which serves as a mandatory legal guarantee for the effective protection of the Union’s financial interests during the reconstruction of Ukraine.
The article provides a comprehensive scientific analysis of the procedural status and jurisdictional powers of the European Public Prosecutor’s Office (EPPO) as the first autonomous supranational body of criminal justice. The long history of the institute’s formation is researched, starting from the 1995 initiatives and the 1997 «Corpus Juris» academic project, which laid the foundation for the codification of EU criminal law, to the publication of the 2001 Green Paper as a key consultative document for stimulating pan-European debates. Particular attention is paid to the role of the 2007 Lisbon Treaty, which, through the implementation of Article 86 TFEU, created a direct legal basis for the establishment of the body under the enhanced cooperation procedure using «accelerator clauses». The material competence of the EPPO in the field of PIF crimes is determined in accordance with Directive 2017/1371, in particular regarding large-scale VAT fraud, corruption, and money laundering, and doctrinal proposals for expanding the mandate to environmental crimes and terrorism are considered. The study emphasizes the unique nature of the office as a body sui generis with direct enforcement powers that distinguish it from traditional agencies. The organizational structure of the body, which combines central (College, Permanent Chambers) and decentralized (delegated prosecutors) levels, ensuring institutional independence from the governments of Member States, is analyzed. Through the prism of the case law of the EU Court of Justice (Taricco, G. K. and Others, Stan v EPPO cases), the mechanisms of cross-border interaction between the handling and assisting delegated prosecutors are revealed, and the priority of national courts in exercising judicial control over the acts of the prosecutor’s office is confirmed. Systemic risks of implementing the right of evocation caused by shortcomings of Article 25 of Regulation 2017/1939 are outlined, illustrated by conflicts of competence in Spain and Croatia. The dynamics of Ukraine’s integration into the supranational financial security system of the EU are investigated: from the 2022 Working Arrangement and memorandums with NABU and SAPO to the ratification of the Framework Agreement on the Ukraine Facility in 2024. The paper examines the legal implications of the 2024 Agreement which serves as a mandatory legal guarantee for the effective protection of the Union’s financial interests during the reconstruction of Ukraine.
This study substantiates blockchain analytics as a specialized expert tool for detecting the legalization of criminal proceeds under wartime conditions. The purpose is to systematize the methodological foundations of distributed ledger forensics and develop a conceptual model for its integration into Ukraine’s financial monitoring system. The implementation involves a comparative analysis of scholarly sources and a review of international regulatory standards in the field of anti-money laundering. Graph neural networks ensure an accuracy of 91 to 96 percent in detecting illicit transactions, and the dominant schemes for laundering wartime proceeds are sanctions arbitrage through stablecoins, fund mixing, and DeFi-based legalization through decentralized protocols. The immutability of records in the distributed ledger creates a unique evidentiary environment that enables retrospective analysis of transaction chains even after laundering operations have been completed. The findings confirm the necessity of fully implementing FATF Recommendation 15 and establishing specialized crypto-forensics units within the structure of domestic law enforcement agencies. The proposed four-level model, encompassing data collection, graph analysis, scheme identification, and evidence formation, defines a practical path toward standardizing crypto-forensics in domestic forensic expert practice and improving the effectiveness of financial investigations.
Open access
Business and Economic Development
Legal, Health, Environmental and COVID-19 Challenges
The relevance of the study is substantiated by the need to reform the penitentiary system of Ukraine and to identify an optimal model for its institutional development in the context of European integration. Based on the synthesis of legislation and practice of the execution of criminal penalties in the EU Member States, the author has developed an original typology of public administration models in the penitentiary sphere. Four basic models are identified: 1) centralized (ministerial), characterized by a rigid vertical hierarchy; 2) the autonomous (executive) agency model, implying the operational independence of a specialized agency; 3) decentralized (federal), where management is exercised at the regional level; and 4) hybrid (asymmetric), which combines a state-wide system with autonomous jurisdictions. The advantages and disadvantages of each model are analyzed. It is established that a common European trend is the separation of policy-making functions (the prerogative of ministries) from operational management functions. The methodological basis of the study is a combination of general scientific and specialized research methods, including comparative-legal, formal-legal, and institutional analyses. The application of these methodological tools allowed for a deeper study of the European experience of penitentiary institutions. It has been shown that, regardless of the chosen organizational structure, the primary criterion for management efficiency is the state’s ability to ensure reliable, dynamic security, strict adherence to human rights standards, and the creation of the most favorable conditions for the successful social reintegration of offenders. Attention is given to the prospects of transforming the domestic penitentiary system. It is noted that the current Ukrainian penitentiary system retains signs of Soviet institutional inertia and excessive centralization. Based on the analysis, the expediency of the institutional transformation of the penitentiary system of Ukraine through the implementation of the autonomous (executive) agency model is substantiated. The study demonstrates that current Ukrainian legislation creates the necessary legal basis for the functioning of the penitentiary service as an autonomous central executive body accountable to the Ministry of Justice.
The relevance of the study is substantiated by the need to reform the penitentiary system of Ukraine and to identify an optimal model for its institutional development in the context of European integration. Based on the synthesis of legislation and practice of the execution of criminal penalties in the EU Member States, the author has developed an original typology of public administration models in the penitentiary sphere. Four basic models are identified: 1) centralized (ministerial), characterized by a rigid vertical hierarchy; 2) the autonomous (executive) agency model, implying the operational independence of a specialized agency; 3) decentralized (federal), where management is exercised at the regional level; and 4) hybrid (asymmetric), which combines a state-wide system with autonomous jurisdictions. The advantages and disadvantages of each model are analyzed. It is established that a common European trend is the separation of policy-making functions (the prerogative of ministries) from operational management functions. The methodological basis of the study is a combination of general scientific and specialized research methods, including comparative-legal, formal-legal, and institutional analyses. The application of these methodological tools allowed for a deeper study of the European experience of penitentiary institutions. It has been shown that, regardless of the chosen organizational structure, the primary criterion for management efficiency is the state’s ability to ensure reliable, dynamic security, strict adherence to human rights standards, and the creation of the most favorable conditions for the successful social reintegration of offenders. Attention is given to the prospects of transforming the domestic penitentiary system. It is noted that the current Ukrainian penitentiary system retains signs of Soviet institutional inertia and excessive centralization. Based on the analysis, the expediency of the institutional transformation of the penitentiary system of Ukraine through the implementation of the autonomous (executive) agency model is substantiated. The study demonstrates that current Ukrainian legislation creates the necessary legal basis for the functioning of the penitentiary service as an autonomous central executive body accountable to the Ministry of Justice.
In the context of the economy digitalization and the information technologies’ active development, cryptocurrency fraud poses an increased social danger and is characterized by a high level of latency, a transnational nature, and difficulties in detection. Purpose: to determine the content and structure of the cryptocurrency fraud’s forensic characteristics of and to identify forensically significant features relevant to the initial stage of investigation. Methods: general scientific methods of analysis and synthesis, induction and deduction, as well as special forensic methods, including the systems-and-activity approach, formal logical analysis, forensic modeling, and the generalization of investigative and judicial practice. Results: it is substantiated that the forensic characteristics of cryptocurrency fraud have independent practical significance and function as an information-oriented category. Its main elements are highlighted, the specificity of the digital trace pattern is revealed, and the role of digital traces as a primary source of evidential information is also shown. The study concludes that the use of forensic characteristics is advisable when formulating investigative hypotheses, planning investigations, and selecting tactical techniques.
The article is devoted to the study of blockchain technologies as an institutional tool for modernizing public administration in the context of the transition to Democracy 3.0. The relevance of the study is determined by the need to find new mechanisms to improve the efficiency, transparency, and legitimacy of public administration in the context of the digital transformation of society. This issue is of particular importance for Ukraine, which is simultaneously modernizing its state institutions in the context of war and European integration processes. The aim of the study is to provide a theoretical and methodological justification for the role of blockchain technologies as an institutional tool for the transformation of public administration in the context of the emergence of Democracy 3.0 and to determine the prospects for their implementation in the Ukrainian public sector. The methodological basis of the study is a neo-institutional approach, which allows us to consider blockchain not only as a technology, but also as a new type of institutional organization that transforms the rules, norms, and mechanisms of interaction between the state and citizens. The main results of the study include the conceptualization of the phenomenon of Democracy 3.0 as a new paradigm of public administration based on the principles of decentralization, transparency, and continuous citizen participation. It has been proven that blockchain acts as the technological basis for institutional change through three mechanisms: decentralization of trust, automation of execution through smart contracts, and immutability of records. Key institutional transformations influenced by blockchain technologies have been identified: the transition from representative to participatory and “liquid democracy” (a hybrid model of political governance that combines elements of direct and representative democracy, allowing citizens to flexibly choose between personal voting and delegating their vote to trusted representatives with the possibility of revoking this delegation at any time), the replacement of centralized control with decentralized verification, and the transformation of the trust economy from institutional to cryptographic. It is argued that blockchain creates a new architecture of state power, where traditional hierarchical structures are complemented by network forms of organization and decentralized autonomous organizations. The Ukrainian context of digital transformation of public administration is analyzed, including the experience of creating the Ministry of Digital Transformation, implementing the Dія ecosystem, and developing blockchain registries. Specific challenges to the implementation of blockchain technologies in Ukraine have been identified: legal barriers, the digital divide, bureaucratic resistance, and the need to ensure cybersecurity in the context of hybrid warfare. The novelty of the research lies in the development of a conceptual model of blockchain-mediated institutional transformation of public administration, which integrates the theory of neo-institutionalism with the concept of democracy 3.0. The practical value of the results is determined by the possibility of using the proposed approaches to form public policy on the digitalization of the public sector in Ukraine. Prospects for further research include empirical verification of the proposed model, development of metrics for evaluating the effectiveness of blockchain solutions in public administration, and research on the socio-psychological factors of citizens’ acceptance of decentralized forms of participation in public administration.
The article is devoted to virtual assets (cryptocurrency) as a subject of a criminal offense from the point of view of its definition and proof. It is noted that cryptocurrency is characterized by a high level of anonymity, since the personal data of the owners of electronic wallets (in particular, the user’s name or address) are not disclosed, and identification is carried out only using a unique set of characters, which does not allow to identify the person. At the same time, information about transactions is open, and all operations with cryptocurrency are anonymous and irreversible. That is, in a broad sense, cryptocurrency is a digital intangible asset that functions as a settlement system with a dynamically changing value, has a predominantly anonymous nature and is not under the control of central banks. The most famous cryptocurrencies include Bitcoin, Ethereum, Dash, Ripple, Monero, Litecoin, Augur, MaidSafeCoin, etc. At the same time, the most famous and expensive of them is Bitcoin – the first decentralized digital currency, created in 2008, which is used to exchange for goods or services using blockchain technology. And the exchange of cryptocurrencies for real money is carried out through online platforms, electronic payment systems or specialized exchange services. It was established that there are no other norms in the current criminal legislation that would directly mention virtual assets or cryptocurrency. In practice, this leads to the fact that investigators and prosecutors in criminal proceedings related to cryptocurrencies act in fact at their own discretion, making procedural decisions, carrying out the seizure of digital assets and organizing their storage without a clearly defined legal mechanism. As a result, the issue of the further legal fate of the seized crypto-assets remains unregulated and is resolved situationally. It is concluded that virtual assets (cryptocurrency) can be the subject of many criminal offenses. For example, fraud (when deception is used when selling or exchanging it for real currency), theft (secret theft of property using a certain computer program), extortion or illicit enrichment (since cryptocurrency can be easily converted into fiat currency, which is quite difficult to track later), etc.
Open access
Legal, Health, Environmental and COVID-19 Challenges
The article examines the assessment of OSINT results in judicial practice through the criteria of relevance, admissibility, and reliability. Attention is drawn to instances where the relevance, admissibility, and reliability of such evidence have been challenged. The approaches of the Criminal Cassation Court to this issue are presented. The effectiveness of such challenges is analysed in detail on the example of the decision of the Criminal Cassation Court in case no. 201/11849/23, in the context of the defence’s arguments and the counter-arguments (regarding the relevance, admissibility, and reliability of factual data). It is concluded that, where OSINT results are recorded in a report under Article 237 of the Code of Criminal Procedure of Ukraine with annexes, the report itself constitutes the source of evidence, as a type of document. Accordingly, issues of admissibility may concern exclusively the manner in which the inspection was conducted and recorded, compliance with the requirements of the Code of Criminal Procedure of Ukraine as to the competent authority, the time limits of the pre-trial investigation, and other procedural aspects of the collection and recording of the data contained in the report. By contrast, if doubts arise concerning the content of the originally recorded data, their origin in open sources (the author of the content, the person who published it, and the purpose of such publication), their possible creation by artificial intelligence, their creation and dissemination for the purpose of disinformation, the correctness of their technical collection, the immutability of online content of any kind, metadata, or hash values, the issue at stake is the reliability of the evidence. In this situation, initiating a claim for the recognition of such factual data as inadmissible evidence is meaningless. OSINT results may contain factual data that lack the quality of relevance, but this is in no way connected with the analysis of their source – namely, open data – since relevance is determined by the existence (or absence) of a connection with the circumstances subject to proof. Accordingly, initiating a claim for the recognition of evidence as irrelevant on the basis of doubts concerning the content of the originally recorded data or their origin in open sources (the author of the content, the person who published it, and the purpose of such publication) is also meaningless. In judicial decisions, OSINT results must be presented in such a way that an impartial observer can understand why the court considers them reliable. The foundation for this lies in proper recording during the pre-trial investigation, in compliance with the recommendations of the Berkeley Protocol.
The article examines the assessment of OSINT results in judicial practice through the criteria of relevance, admissibility, and reliability. Attention is drawn to instances where the relevance, admissibility, and reliability of such evidence have been challenged. The approaches of the Criminal Cassation Court to this issue are presented. The effectiveness of such challenges is analysed in detail on the example of the decision of the Criminal Cassation Court in case no. 201/11849/23, in the context of the defence’s arguments and the counter-arguments (regarding the relevance, admissibility, and reliability of factual data). It is concluded that, where OSINT results are recorded in a report under Article 237 of the Code of Criminal Procedure of Ukraine with annexes, the report itself constitutes the source of evidence, as a type of document. Accordingly, issues of admissibility may concern exclusively the manner in which the inspection was conducted and recorded, compliance with the requirements of the Code of Criminal Procedure of Ukraine as to the competent authority, the time limits of the pre-trial investigation, and other procedural aspects of the collection and recording of the data contained in the report. By contrast, if doubts arise concerning the content of the originally recorded data, their origin in open sources (the author of the content, the person who published it, and the purpose of such publication), their possible creation by artificial intelligence, their creation and dissemination for the purpose of disinformation, the correctness of their technical collection, the immutability of online content of any kind, metadata, or hash values, the issue at stake is the reliability of the evidence. In this situation, initiating a claim for the recognition of such factual data as inadmissible evidence is meaningless. OSINT results may contain factual data that lack the quality of relevance, but this is in no way connected with the analysis of their source – namely, open data – since relevance is determined by the existence (or absence) of a connection with the circumstances subject to proof. Accordingly, initiating a claim for the recognition of evidence as irrelevant on the basis of doubts concerning the content of the originally recorded data or their origin in open sources (the author of the content, the person who published it, and the purpose of such publication) is also meaningless. In judicial decisions, OSINT results must be presented in such a way that an impartial observer can understand why the court considers them reliable. The foundation for this lies in proper recording during the pre-trial investigation, in compliance with the recommendations of the Berkeley Protocol.
The article provides a comprehensive analysis of the constitutional and legal aspects of digital intellectual property in the context of the development of the information society and Ukraine's accelerated digital transformation under wartime conditions.It examines the impact of emerging technologies, particularly artificial intelligence (AI), blockchain, and non-fungible tokens (NFTs), on the transformation of traditional concepts of authorship, ownership, and creative freedom.Special attention is paid to the need for reinterpreting constitutional guarantees enshrined in Articles 41 and 54 of the Constitution of Ukraine through the lens of technological neutrality and contemporary digital realities.The study focuses on the challenges of identifying authorship in works generated with the use of artificial intelligence, as well as on the legal nature of ownership rights to digital assets, including NFTs.It also analyzes the role of the Constitutional Court of Ukraine in shaping the doctrine of digital rights and adapting constitutional interpretation to the challenges of the digital era.Particular emphasis is placed on the importance of digital intellectual property for Ukraine's post-war recovery, especially in the context of developing a national Digital IP Strategy aligned with European approaches and initiatives.The article substantiates the conclusion that the constitutional modernization of intellectual property law is necessary to ensure a balance between human rights, technological innovation, open access to knowledge, and national resilience.Such an approach will contribute to the harmonization of Ukraine's legal system with European and international standards while preserving the human-centered nature of legal regulation in the field of creative activity in the digital age.
Open access
Legal, Health, Environmental and COVID-19 Challenges
The article examines the legal mechanism for regulating the circulation of virtual assets in Ukraine and the regulatory and legal support for countering illegal activities with various types of cryptocurrencies. The provisions of the Law of Ukraine “On Virtual Assets”, amendments and additions to civil legislation in terms of introducing the concept of “digital thing” are analyzed. It is proven that the provisions of the European Regulation “Markets in Crypto-Assets” (“MiCA”) are essential for the legal regulation of the circulation of virtual assets and countering illegal activities with them. The classification of virtual assets contained in the European Regulation “MiCA” is disclosed in order to understand the essence of various types of cryptocurrencies. The peculiarities of the circulation of such crypto-assets as Bitcoin, Ethereum are disclosed and noted; the concepts of “blockchain”, “validator”, “service token”, “crypto-asset issuer”, etc. are investigated. The role of a number of state bodies in countering the illegal circulation of virtual assets in Ukraine is highlighted. It is argued that the coordination of analytical work and the detection of risky transactions is provided by the State Financial Monitoring Service of Ukraine. It is substantiated that the detection of criminal schemes and ensuring the prosecution of those guilty of offenses with virtual assets is entrusted to the National Police, the Security Service of Ukraine, the State Bureau of Investigation, the Bureau of Economic Security, and the Prosecutor’s Office. Such bodies as the National Bank of Ukraine, the National Securities and Stock Market Commission, and the Ministry of Digital Transformation of Ukraine form a regulatory framework that should prevent the use of crypto-assets for illegal purposes. It is established that countering the illegal circulation of virtual assets in Ukraine is carried out both through preventive measures, analytical work and improvement of the regulatory and legal framework, and through operational-search and criminal-law jurisdiction. This comprehensive model allows responding to the latest challenges, in particular, the use of decentralized finance, anonymous technologies, and cross-border schemes for the illegal circulation of virtual assets.
In the article are outlined the elements of the criminal offense provided for in Article 368-5 of the Criminal Code of Ukraine - illicit enrichment. The article focuses on the subject matter of this criminal offense, namely, virtual assets (in particular, cryptocurrencies and non-fungible tokens (NFT)) as a type of intangible assets. The study highlights the problem of the lack of a unified approach to the definition of terms in the field of virtual assets, such as «virtual assets», «cryptocurrencies», «cryptoassets», etc. As a result, Ukraine lacks a unified conceptual framework in the legislation applicable to legal relations on the declaration of virtual assets and criminalization of illicit enrichment, which leads to problems in law enforcement. In the article are analized the problematic issues of the possibility of criminal prosecution for violation of anti-corruption legislation and illicit enrichment with virtual assets, among which the following are highlighted: problems with assessing the market value of virtual assets due to market volatility and lack of analogues for NFTs, lack of standards and methodology for establishing the value of virtual assets, often insufficient professional knowledge of virtual assets and the principle of their operation by the parties to criminal proceedings. The article concludes with the author’s recommendations on how to overcome these problematic issues, namely: the need to harmonize national legislation with European standards, in particular, with the Regulation EU Markets in Crypto-Assets, to develop a methodology for assessing the value of virtual assets and to improve the procedures for their consideration in the course of qualifying criminal offenses and in the declaration process, to increase the number of professional staff, to improve educational programs for training of investigators, prosecutors, defense counsels and judges.
The article is devoted to studying the problems of recording electronic evidence in criminal proceedings regarding crimes committed in Ukraine using cryptocurrencies, which is relevant in view of the significant spread and use of cryptocurrencies and crimes committed through their use. During the study, the methods of system analysis and technical-legal analysis were employed, alongside the formal-logical method. The shortcomings in the legal regulation of the investigation of crimes committed using cryptocurrencies were highlighted. Practical recommendations have been developed for involving experts in the fields of computer technologies, programming, and information security in the recording of electronic evidence in criminal proceedings concerning crimes committed with the use of cryptocurrencies. The requirements for recording electronic evidence while investigating crimes committed using cryptocurrencies (virtual assets) are formulated. In particular, the need to copy, archive and hash files is specified. The use of appropriate software is suggested. The practical significance of the study is that the obtained results can be used by operatives, investigators, prosecutors and detectives during the investigation of crimes of the studied category, as well as during further scientific research on the specified topic.
Open access
Ukrainian Legal and Forensic Studies
Legal, Health, Environmental and COVID-19 Challenges
The article is devoted to the investigation of the confiscation of cryptocurrency (virtual assets) during the execution of court decisions in criminal proceedings. The topic of the research is relevant because the cryptocurrency industry is currently more developed than the legal regulation of this area. Equally impressive is the number and methods of committing crimes of illegal possession of cryptocurrency. However, until now there are no studies in Ukraine that would determine at the doctrinal level how to execute a court decision on the confiscation of cryptocurrency. In the process of research, the formal-logical method, as well as the methods of systemic and technical-legal analysis were applied, which made it possible to formulate approaches to the execution of punishment in the form of confiscation of cryptocurrency and the rules of such confiscation. The need to provide at the legislative level for the grounds, procedure and rules for the confiscation of cryptocurrency, as well as its special confiscation, is indicated. The experience of confiscation of cryptocurrency in other jurisdictions is presented and the optimal algorithm and procedure for carrying out such activities is proposed. Cases that may occur in the context of confiscation of cryptocurrency are identified and rules and approaches to such confiscation are formulated.
Open access
War, Law, and Justice
Legal, Health, Environmental and COVID-19 Challenges
Today, environmental protection is a priority task for the governments of countries around the world due to the deepening of environmental problems and their impact on people's lives. Several problematic issues can and must be solved at the local level, which will make environmental policy more effective and take into account local needs. The study aimed to analyse the competence of local self-government bodies in terms of monitoring compliance with environmental legislation. A comparative analysis was used to study the issue of ensuring the protection of the environment and ecosystem by local self-government bodies through the prism of legal protection. During the research, several obstacles to the implementation of effective environmental protection measures at the local level were identified: the imperfection of the financing system, the lack of environmental awareness, the absence of effective administrative and procedural measures, and the imperfection of state control. In response to the identified problems, the positive experience of implementing the norms of the European Charter of Local Self-Government was investigated. It was established that the decentralization of local self-government had a positive effect on the protection of the ecosystem, as it brought local authorities closer to the public and provided local authorities with real powers to solve problems related to compliance with environmental legislation. In addition, to increase the effectiveness of mechanisms of state control over local self-government in the field of environmental protection, a system of principles of such control is proposed, consisting of publicity, systematicity, effectiveness, objectivity, impartiality, and universality. The proposed system will cover several key environmental problems and quickly and effectively solve them with the involvement of competent specialists and the public. The state of environmental protection at the local level is seen in further research and justification to determine practical recommendations for the implementation of decentralization of local self-government.
Background. The article covers the analysis of the smart contract of cryptoassets in the civil law of Ukraine. Attention is argued that the essence of a smart contract of cryptoassets is that it is a self-executing contract, that is represented and executed by a computer program, the terms of which are included in the internal functions of a decentralized database that is not under the control of the databases of the parties to the contract or third parties . It is noted that a smart contract of cryptoassets, like any contract, can be declared invalid if the will to conclude it does not meet the conditions of validity of this transaction, regardless of the form in which this transaction is concluded, as in this case in the form of computer code. It is also stated that the terms of the smart contract of cryptoassets must be specific (clear, unambiguous), feasible (objective), valid, capable of automation (evaluative terms such as "reasonable term" cannot be used); it must exist within the blockchain platform (on which crypto-asset transactions are currently carried out) and not provide for the receipt and confirmation of information from the outside (in this regard, the terms of force majeure are not specified in the smart contract). Methods. The research uses dialectical, comparative-legal, formal-logical and other methods of scientific knowledge. Results. It is proved that a smart contract is an agreement represented and executed by a computer program containing all its terms and conditions, which are stored in an electronic registry system, where the result of this program execution is recorded. Conclusions. The determination of the person on whom legal liability is imposed when a smart contract does not perform the programmed function depends on the terms of the smart contract, and in their absence, the provisions of applicable law regarding the legal consequences of non-performance of the contract and liability for such non-performance should be used.
The article examines the peculiarities of a public contract on the Internet. This is a type of legal relationship in the digital environment. It has been proven that some of the contracts on the Internet are public. If contracts on the Internet contain signs of a public contract, the rules on a public contract apply to them. Currently, there is no comprehensive list of public contracts in the Civil Code of Ukraine. This allows the application of legal norms to public contracts on the Internet. This is facilitated by the dispositive nature of civil law norms. It was concluded that the Internet is only a form of legal relations that exist in civil law. These legal relations are property or personal non-property. They take place in a digital environment. The Internet is a kind of digital form of legal relations, among which there are civil ones. Peculiarities of smart contracts have been studied. Some of them are characterized by public contracts. For example, a contract on registration on an Internet platform is public. Here, one party is the consumer, who receives the rights granted by the Internet platform. The second party is an entrepreneur who owns the rights to the Internet platform. Some smart contracts are not public contracts. For example, those that are arranged inside the Internet platform. In particular, this is a contract for the sale of NFTs. It is proposed to supplement the Civil Code of Ukraine. It is necessary to add provisions on smart contracts to it. These norms should be contained in the general provisions of the contract. Internet platforms for the sale of goods can mediate in the settlement of the dispute. They contribute to establishing contact and dialogue between the parties. This contributes to the protection of consumer
Open access
Digital Transformation in Law
Ukrainian Legal and Forensic Studies
Legal, Health, Environmental and COVID-19 Challenges
Bogdan Derevyanko, Nadiia Іvanchenko, Oleksandr Podskrebko, A. V. Prylutska · 5 authors
The paper identifies the main positive aspects and risks of operations involving cryptocurrency after their legitimization and suggests ways to reduce the impact of risks and negative consequences. Analysis and synthesis techniques were utilized in the research in order to summarize the findings and draw conclusions in accordance with the paper’s structural divisions. The structural approach made it possible to structure the provisions on the potential spread of the impact of the existing state regulatory system on participants’ activities in the cryptocurrency market and determine which state executive authorities should be assigned the task of licensing cryptocurrency mining. The comparative legal method was used to search for advantages and disadvantages for various types of legal entities after legitimizing cryptocurrency. In order to examine the origins of human civilization and its recent acceleration of digitalization, the historical legal method was utilized. The authors have elaborated methods aimed at reducing the risks of operations with cryptocurrencies, as well as protecting the interests of the state and cryptocurrency market participants. It is proposed to establish a cryptocurrency exchange by citizens of Ukraine or business entities in agreement with the National Bank of Ukraine, the National Securities and Stock Market Commission or other central executive body. It is proposed to protect the interests of participants in the cryptocurrency market through the application of a group of measures characterized by the term “legal work at the enterprise”, and the LLC legal form can be used to prevent conflicts between founders and protection from encroachments of corporate raiders for small businesses
The article is devoted to the legal analysis of the concept of cryptocurrency in the context of the need to harmonize its legal and economic characteristics. The economic content of cryptocurrencies has been studied, taking into account the fact that they were created specifically to perform economic functions — decentralized storage and circulation of value. It is substantiated that the presence of decentralized principles of cryptocurrency emission through mining and the existence of blockchain technologies and cryptographic algorithms do not allow the state to establish legal features of cryptocurrency through traditional legal forms of defining a certain subject as a means of payment. It was concluded that cryptocurrency couldn’t be defined as an intangible good, regulated by the Civil Code of Ukraine, because of the economic purpose of cryptocurrency as a means of circulation and preservation of value. It is proposed a legal approach to cryptocurrency, which would allow incorporating cryptocurrency into the national legal system and circulation operations, prevent shadow operations and the legalization of “dirty funds”. In this context, it is proposed to approach cryptocurrency as ejusdem generis, bringing the understanding of cryptocurrencies closer to other things. The possibility of recognizing of cryptocurrency as the right of claim characteristic of non-cash money is denied. Unlike electronic money, cryptocurrencies do not mediate the payment obligation and the right to demand. It was concluded that cryptocurrency should be defined, taking into account the theory of legal fiction, an interchangeable type of virtual asset in the form of an encrypted electronic record, the emission and accounting of which is performed decentralized on the basis of distributed ledger technology and cryptographic algorithms, which is an object of property rights and can perform circulation and accumulation functions.
This study investigated the criminal liability for illegal acquisition of cryptocurrency in Ukraine, which is relevant in connection with the considerable spread of cryptocurrencies and cases of their illegal acquisition, as a result of which significant material damage is caused to the victims. Specifically, this is explained by the collapse of cryptocurrency exchanges and hacker attacks on cryptocurrency wallets. The purpose of this study was to investigate what criminal liability is prescribed for illegal possession of cryptocurrency in Ukraine. The study employed a dialectical approach and methods of system and technical and legal analysis, as well as a formal and logical method. Approaches to understanding the term “cryptocurrency” were defined, and its types were specified. The features of the functioning of blockchain technology were covered. This paper analysed the legal regulation of virtual assets in Ukraine, their relationship with cryptocurrency. It is noted that at its core, cryptocurrency is not a virtual asset and that it is advisable to consider it an electronic asset based on the blockchain – a decentralized public register of all cryptocurrency transactions conducted on the network. Shortcomings in the legal regulation of cryptocurrencies in Ukraine were highlighted, specifically, it was noted that the signs of virtual assets do not fully coincide with the signs of cryptocurrencies. The most common ways of illegal possession of cryptocurrency were specified, and problematic issues of bringing individuals who have come into illegal possession of cryptocurrency to criminal responsibility were outlined. This paper substantiated the impossibility of bringing individuals who have come into illegal possession of cryptocurrency to criminal responsibility in Ukraine, considering the principle of legal certainty and avoiding analogy in criminal law. The necessity of criminalizing illegal possession of cryptocurrency was proved. Practical recommendations on making appropriate amendments to the Criminal Code of Ukraine were formulated. The theoretical value of this study lies in the formation of an approach to the need to criminalize the illegal possession of cryptocurrencies, and its results can be used in law-making activities.
Open access
Ukrainian Legal and Forensic Studies
Legal, Health, Environmental and COVID-19 Challenges