ABSTRACT Cryptocurrencies are digital tokens secured by cryptography and recorded on decentralized networks, offering innovations like peer-to-peer finance and token-based fundraising but also posing risks such as wild price swings and laundering opportunities. This study uses doctrinal analysis—reviewing laws (e.g., RBI Act, FEMA, PMLA), court rulings (such as IAMAI v. RBI), and regulatory notices—to map India’s material and procedural rules for crypto. India’s response has been fragmented: RBI cautions in 2013/17 and a 2018 banking-ban overturned in 2020 left no unified law, while the draft 2021 Bill remains pending. Tax measures in 2022 imposed a 30 % flat tax on crypto gains (Section 115BBH) and 1 % TDS on transfers above ₹10,000, but lack clear licensing or consumer safeguards. Comparative review shows the U.S. relies on SEC enforcement (Howey Test) and FinCEN’s MSB rules, whereas the EU’s MiCA sets uniform definitions, licensing, and AML/CFT standards. Key gaps in India include unclear asset definitions, no VASP registry, and weak AML “travel-rule” compliance. The dissertation recommends a technology-neutral crypto law with precise definitions, a licensing regime, mandatory KYC, consumer-protection mechanisms, and adaptive sandboxes supported by AI-driven monitoring tools
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.
This chapter explores the evolution and legal implications of DAOs, starting with the pioneering case of The DAO in 2016. It delves into the legal challenges posed by The DAO, such as its ambiguous legal status, liability issues from code failures, jurisdictional questions, and the classification of its tokens as securities. The discussion then transitions to the broader context of how the concept of a company is evolving in the 21st century economy, highlighting the emergence of new digital social organizations using technology to protect stakeholders, yet failing to provide legal protection for DAO members who face liability risks. The chapter also examines both legislative and practical responses to these challenges, which had already been revealed in The DAO case, including the enactment of specific DAO laws and the adoption of legal wrappers. Finally, the chapter concludes with a call to integrate DAOs into the Swiss legal framework, reflecting Switzerland's progressive stance on blockchain technology.
The article is devoted to the study of the tax and legal aspects of the ruble-backed stablecoin A7A5, which is a foreign digital right and is qualified in the Russian Federation as a digital financial asset. The subject of the study is the specifics of the legal regime of foreign digital rights classified as digital financial assets in the Russian Federation, and the taxation of transactions with such an asset. As a result of the conducted research, the author comes to the conclusion that, despite the creation of a legal framework for the integration of foreign digital rights into the Russian legal order, their tax and legal regime remains insufficiently developed. It is shown that this category is of an auxiliary (technical) nature and serves primarily as a tool for legitimizing a certain range of foreign assets in Russia, without being a full-fledged and independent legal construct. It is noted that the Tax Code of the Russian Federation lacks special provisions regulating the taxation of foreign digital rights, except for transactions within the experimental legal regime, which creates legal uncertainty. The author argues that recognizing foreign digital rights as digital financial assets represents a new phase in Russia's digital financial assets market, driven significantly by the A7A5 asset's integration with a public blockchain. This not only expands the opportunities for the circulation of such assets but also gives rise to unique transactions with such assets in the decentralized finance environment, which directly raises the issue of the need to develop special approaches to accounting for income, expenses and losses from such transactions for tax purposes. It is concluded that the economic nature of such transactions may be similar to transactions with derivative financial instruments and hedging. This similarity justifies extending the special tax rules for such analogous instruments to transactions with foreign digital rights. The results of the study can be applied to the further development of legislation on the taxation of foreign digital rights.
This reflects on the object of digital ownership and its inevitable ambiguities. The discussion sets off with Denegri-Knott and Molesworth’s notion of the digital-virtual, which is refined and further qualified by leveraging Lehdonvirta’s contributions, in particular, his distinction between “digital information goods” and “virtual goods”. In contrast to the former, virtual goods like non-fungible tokens (NFTs) are designed to be rivalrous, excludable and scarce by design. This chapter argues that as virtual goods expand beyond the realm of in-game tools and wearables into the broader universe of digital collectibles, such as digital art, profile pictures or digital sports collectibles, the already-mentioned challenges of extending and stabilizing ownership are joined by additional challenges of stabilizing the ontologically ambiguous virtual objects. Focusing on the example of NFTs as virtual art objects, three sets of ambiguities are outlined: (1) the concept-content ambiguity (analogous to the challenges of owning conceptual art), (2) the ambiguity of token-as-creative-object and (3) the ambiguities caused by excessive assetization. Reflecting on these various ambiguities helps to bring (some) additional clarity to the muddled waters of NFT ownership and provides potential explanations for the precariousness of NFT objecthood and ownership.
Введение. Цифровизация финансовых инструментов и развитие социального предпринимательства являются актуальными векторами устойчивого социальноэкономического развития. Применение цифровых финансовых технологий позволяет снизить трансакционные издержки, ускорить финансовые операции и повысить их прозрачность. Социально ответственные бизнес-модели, в свою очередь, способствуют снижению издержек на предоставление социальных услуг, разгружая действующую государственную инфраструктуру. Материалы и методы. Авторами анализируются теоретические и практические аспекты применения цифровых финансовых активов, цифровых валют и криптовалютных токенов в сфере социально ориентированного бизнеса. Результаты исследования. В статье рассматриваются цифровые активы как новое явление в деятельности социального предпринимательства. Отдельное внимание уделено анализу преимуществ и рисков использования цифровых активов как источника финансирования социального бизнеса. Обсуждение и заключение. Финансовые и технологические риски оказывают существенное влияние на объемы использования цифровых активов в социальном предпринимательстве. Однако, благодаря технологии блокчейн, исключающей потенциальные изменения, цифровые активы являются наиболее защищенным инструментом ведения бизнеса, особенно в областях, связанных с благотворительностью, краудфандингом и т.д. Несмотря на риски, сопровождавшие децентрализованное финансирование, социальный эффект и возможности для увеличения доходный базы бюджета страны позволяют рассматривать данные технологии как инструменты долгосрочной перспективы. Introduction. Digitalization of financial instruments and the development of social entrepreneurship are relevant vectors of sustainable socio-economic development. The use of digital financial technologies makes it possible to reduce transaction costs, speed up financial transactions and increase their transparency. Socially responsible business models, in turn, contribute to reducing the cost of providing social services by unloading existing public infrastructure. Materials and methods. The authors analyze the theoretical and practical aspects of the use of digital financial assets, digital currencies and cryptocurrency tokens in the field of socially oriented business. Research results. The article examines digital assets as a new phenomenon in social entrepreneurship. Special attention is paid to the analysis of the advantages and risks of using digital assets as a source of financing for social business. Discussion and conclusion. Financial and technological risks have a significant impact on the use of digital assets in social entrepreneurship. However, thanks to blockchain technology, which eliminates potential changes, digital assets are the most secure business tool, especially in areas related to charity, crowdfunding, etc. Despite the risks that accompanied decentralized financing, the social impact and opportunities to increase the revenue base of the country's budget allow us to consider these technologies as long-term tools.
Smart contracts, self-executing programs on blockchain platforms, are transforming how contractual obligations are expressed and enforced. Their adoption presents complex legal challenges, particularly in ascertaining the true will of contracting parties. This paper explores doctrinal and practical difficulties in determining intent within smart contracts, examining the transformation of the autonomy of will, the legal nature of smart contracts, the expression and proof of consent, and judicial and regulatory developments. Special emphasis is placed on Uzbekistan, where legal infrastructure remains underdeveloped. Through comparative analysis and authoritative academic sources, the article proposes solutions such as hybrid contractual models, legal recognition of smart contracts as electronic transactions, and standardized frameworks to ensure fairness and enforceability.
This study examines the role of crypto funds (CFs) in enhancing the valuation and performance of decentralized digital platforms (DDPs) by mitigating coordination frictions and information asymmetries. Drawing on panel data from 1,200 Ethereum-based projects and event-study evidence around CF investment disclosures, we find that CF-backed DDPs achieve significantly higher token valuations in the primary market, experience positive cumulative abnormal returns (CARs) around investment announcements, and outperform non-CF-backed peers’ post-issuance. The impact of CFs is stronger when they hold central positions in investor networks and when token ownership is more decentralized. Robustness checks using alternative dependent variables, subsample analyses, and interaction terms confirm the validity of the findings. These results highlight the importance of institutional capital not only in financing but also in signaling quality and enhancing governance in decentralized ecosystems. Policy implications include the need for standard CF disclosure practices, token distribution guidelines, and improved audit standards for smart contracts. The findings contribute to emerging debates on institutional legitimacy, valuation dynamics, and governance in the digital asset economy.
Данная работа посвящена обзору автоматизированных инструментов безопасной разработки смарт-контрактов Ethereum. Рассматриваются актуальные уязвимости, характерные для смарт-контрактов, такие как уязвимость повторного входа, недостаточный контроль доступа, манипуляции с оракулом цены и другие. К каждой уязвимости приведена иллюстрация с уязвимым кодом. Далее рассмотрены разные типы существующих автоматизированных инструментов безопасной разработки смарт-контрактов: статический анализатор, линтер, символьный исполнитель, фаззинг и подходы на основе машинного обучения. Для каждого типа инструмента рассмотрено соответствующее реальное решение, которое является одним из лучших в своей категории. Это такие open-source решения как статический анализатор Slither, линтер Solhint, символьный исполнитель Mythril и фреймворк Foundry, который содержит в себе возможность фаззинга. Также рассмотрена текущая эффективность современных решений, которая показывает, что текущие угрозы плохо детектируется существующими инструментами. Исходя из этого предложены направления для дальнейшего развития новых инструментов безопасной разработки смарт-контрактов. Полученные результаты могут быть использованы для более глубокого понимания вопросов безопасности смарт-контрактов, а также для повышения безопасности децентрализованных приложений и развития методов автоматизированного аудита смарт-контрактов. This paper provides an overview of automated tools for secure development of Ethereum smart contracts. The article discusses current vulnerabilities specific to smart contracts, such as re-entrancy vulnerability, insufficient access control, price oracle manipulation, and others. Each vulnerability is accompanied by an illustration of the vulnerable code. Next, we discuss different types of existing automated tools for secure smart contract development: static analyzer, linter, symbolic executor, fuzzing, and machine learning-based approaches. For each type of tool, a corresponding real solution is considered, which is one of the best in its category. These are open-source solutions such as the Slither static analyzer, the Solhint linter, the Mythril symbolic executor, and the Foundry framework, which includes fuzzing capabilities. The current effectiveness of modern solutions is also considered, which shows that current threats are poorly detected by existing tools. Based on this, directions for the further development of new tools for the secure development of smart contracts are proposed. The obtained results can be used to gain a deeper understanding of smart contract security issues, as well as to enhance the security of decentralized applications and develop automated smart contract auditing methods.
Sangharatna Godboley, P. Radha Krishna, Sunkara Sri Harika, Pooja Varnam
We propose and develop a framework for validating smart contracts derived from e-contracts. The goal is to ensure the generated smart contracts fulfil all the conditions outlined in their corresponding e-contracts. By confirming alignment between the smart contracts and their original agreements, this approach enhances trust and reliability in automated contract execution. The proposed framework will systematically compare and validate the terms and clauses of the e-contracts with the logic of the smart contracts. This validation confirms that the agreement is accurately translated into executable code. Automated verification identifies issues between the e-contracts and their smart contract counterparts. This proposed work will solve the problems of gap between legal language and code execution, this framework ensures seamless integration of smart contracts into the existing legal framework.
This article examines the intersection between non-fungible tokens (NFTs) and copyright within the realm of digital intellectual property. NFTs represent a disruptive technology that challenges traditional notions of ownership and authenticity, raising new legal and ethical questions. The study analyzes how this technology impacts the creation, distribution, and commercialization of digital works, and evaluates the challenges current copyright laws face when applied to this new environment, including issues such as ownership, reproduction, and derivative works. It also explores the role of smart contracts associated with NFTs and their potential to automate the management of rights and royalties. The article highlights risks such as plagiarism and forgery in the digital space and proposes both legal and technological solutions. Through case studies and emerging trends, it suggests how legislation may evolve to adapt to the NFT era. Finally, it offers practical recommendations for creators, platforms, and policymakers to navigate this new digital frontier.
Introduction. Digital assets, such as cryptocurrency, tokens and NFTs (non-fungible tokens), other digital objects are rapidly changing the economic landscape, creating new opportunities for businesses and investors. However, unresolved issues regarding their legal regulation and accounting pose serious challenges for governments, businesses and financial institutions. This problem is of particular importance as digital assets become increasingly important in the global economy. Purpose of the study. The purpose of the study is to analyze the content of digital assets in a global context, to consider their specifics and place in modern economic realities. Special attention is paid to the challenges that arise in connection with unresolved issues regarding the regulation of digital assets. Research methods. In the process of research and writing the article, the following methods were used: dialectical, systems analysis, generalization, comparison, logical. Results. The article explores the essence of digital assets as an innovative object, it is determined that despite the similarity, the terms «digital assets» and «virtual assets» have different emphases in application, understanding their differences allows us to more accurately determine the legal status of the asset, the scope of its use and the features of accounting or regulation; digital assets cover a wider range of objects, while virtual assets are a subcategory of digital assets focused on the financial sphere. The main challenges associated with the use of digital assets in the financial and economic spheres are also highlighted. Among them are regulatory uncertainty, volatility risks, security issues and the lack of uniform accounting and financial reporting standards. The author emphasizes that the development of digital assets requires a clear legal framework and the implementation of international standards. The author predicts the growing role of digital assets in financial transactions, investments and tokenization of traditional assets. The conclusions emphasize that digital assets are not only a technological but also an economic phenomenon that transforms traditional approaches to storing and managing values. Prospects. Further study of the study of digital assets will not only allow for a deeper understanding of their nature, but will also contribute to the development of effective approaches to their regulation, integration into traditional economic processes and maximization of their potential in the modern world. The need to create unified approaches to the classification, assessment and reflection of digital assets in financial reporting is urgent. Research may include the development of new accounting standards that take into account the specifics of cryptocurrencies, tokens and NFTs.
The authors analyze the place of cryptocurrency in the system of objects of civil rights, as well as legal problems of inclusion of cryptocurrency in the debtor's bankruptcy estate during insolvency (bankruptcy) proceedings. The article provides recommendations on the detection of cryptocurrency by the bankruptcy trustee, substantiates the need to include cryptocurrency in the bankruptcy estate, examines the problems of storage and realization of cryptocurrency by the bankruptcy trustee.
As a result of the digital transformation of the economy, virtual currencies, and in particular cryptocurrency, are not only a new economic phenomenon. The high degree of anonymity and mobility in movement between countries, the sometimes sharply changing value, and their more reliable safety compared to cash — ensure the growing popularity of virtual currencies. However, the emergence of decentralized payment systems and virtual currencies creates serious problems for government authorities in various countries, which are largely due to the fact that even among international organizations a universal approach to the concept of cryptocurrency and virtual currency has not yet been formed.
Introduction: the study covers features of investigation activities of internal affairs in countering bribery committed with the use of digital financial and cryptocurrency assets. Materials and Methods: the doctrinal law provisions on the investigation activities of the internal affairs in the light of the fight against corruption became the study materials. Regulations on countering bribery committed with digital financial and cryptocurrency assets were the basic study sources. The author used universal (analysis, deduction, and induction) and special (structure logic, dialectical, and legal) methods of cognition. Literature review: the author analyzed investigation and criminology scientific works, as well as considered studies on informational and telecommunication technologies in countering bribery. Thus, he came to the conclusion that H.A. Asatryan, A.P. Dmitrienko, M.G. Zhigas, V.S. Ishigeev, A.V. Kulikov, A.I. Ovchinnikov, A.L. Repetskaya and others contributed substantially to the study. Results: the following conclusions were drawn from the research: - The most challenging issues concerning the detection and documentation of bribery committed using digital financial and cryptocurrency assets were analysed by the author. - The most common ways to identify crypto wallets and their users, which can be used by internal affairs bodies, were considered. - The scheme of criminal transactions related to bribery was presented. - The regularity in the use of information and telecommunication technologies by internal affairs bodies in combating bribery committed using digital financial and cryptocurrency assets was defined. Discussion and Conclusions: there are signs of circulation of digital financial and cryptocurrency assets in bribery. The author presents his own variant of the inquiry for crypto platform to receive necessary information for the investigation; measures to improve investigation efficiency in internal affairs bodies when combating bribery committed with digital financial and cryptocurrency assets.
Milad Shojaiyan, sona bairamzadeh, Abbas Ali Hajikarimi
Objective: As a nascent financial technology, cryptocurrencies are experiencing growth, development, and adoption across multiple economic sectors. This study aimed to identify the essential Iranian stakeholders in the field of cryptocurrencies and to assess their behavior. The findings are intended to provide policymakers with valuable insights that will assist them in formulating strategic plans and establishing a structured framework for the nation's cryptocurrency industry.Method: The analysis of cryptocurrencies poses challenges due to the innovative and uncertain nature of several ideas, the involvement of multiple players, and the influence of diverse political, economic, social, and technical variables. Consequently, quantitative approaches alone may not provide a full understanding of this topic. The study paradigm is interpretive, employing a qualitative approach, content analysis technique, and stratified analysis of the causes.Results: Significant findings have been identified in the private three-level patterns of actors and activists in the field of cryptocurrency in Iran, and in the first tables of each of them, a three-level statement and analysis for the communication between the actors has been presented.Conclusions: The results obtained in this research show the reasons for the creation of the current environment governing the cryptocurrency industry in Iran, which shows the need to compile laws and regulations in the field of cryptocurrency and draw a framework for the activities of actors in this field, in order to develop this industry in the country and benefit the country from the advantages of cryptocurrencies are essential.
The article deals with the theoretical basics of digital asset valuation and substantiates the need for their integration into modern financial analysis and corporate finance. It concludes that traditional methods—discounted cash flow (DCF), the capital asset pricing model (CAPM), and comparative multiple analysis—have proven effective in valuing stocks, bonds, and other traditional instruments, but are limited in the digital economy. Cryptocurrencies, utility tokens, digital rights, and non-fungible tokens (NFTs) possess unique features: intangible nature, lack of guaranteed cash flows, high price volatility, dependence on network effects, and decentralization. The article looks into the latest adaptation of valuation methods, including network metrics (market capitalization to transaction volume ratio (NVT), Metcalfe's law), modified fee discounting models, and scenario-based venture approaches. It also explores the using the MV=PQ equation for tokenomics analysis and the determining of a "price floor" by means of mining or staking cost. Particular attention is paid to the role of Big Data and on-chain analytics, which enable applying open blockchain data on transactions and users' activity, as well as using artificial intelligence and machine learning algorithms for price forecasting, identifying fundamental value, and separating it from speculative factors. It emphasizes the need to expand the conceptual framework, to consider legal definitions, and develop specialized models for various token types (utility, security, stablecoins, NFTs) that take into account the technological characteristics of networks, incentive economics, and behavioral factors. It is concluded that integrating digital assets into financial valuation theory requires an interdisciplinary approach that compraises finance, network economics, legal regulation, data-driven analytics, and tokenomics engineering design.
Crypto assets initially appeared as “virtual currencies”, but it became clear that they had limitations in terms of their function as a currency, particularly in terms of their practical use. Although the speculative aspect is often emphasized, in reality, there are cases where they are adopted as legal tender in emerging countries, suggesting that they are not necessarily limited to being a speculative product. The IMF is calling for stricter regulations due to the rapid growth of the crypto asset market and concerns about systemic risk. In addition, the bankruptcy of FTX has confirmed that the price of cryptocurrencies fluctuates according to the expectations of market participants, and the introduction of financial products undermines price stability. Stablecoins have been developed as a means of supplementing the limitations of cryptocurrencies, and their use is expanding, but financial authorities are calling for stricter regulations. The chain reaction of the crypto asset market crash was caused by excessive expectations, and was the result of rapid growth and delayed regulation. Crypto assets, which were created with the aim of being a decentralized system, are now strengthening their centralized elements, and as the risks are becoming more apparent, it has been concluded that strengthening monitoring systems and regulations is essential.
Market sentiment refers to the overall feeling of investors and traders have about the state of the market or the price action of a particular asset. The descriptive study focused on the impact of market sentiment on cryptocurrency investment. Specifically, this study answered the following questions using the data collected in an online survey with 2014 respondents: (1) What is the current status of the market sentiment on cryptocurrency investment? (2) What are the common problems encountered by investors in the cryptocurrency market? (3) Is there a significant relationship between the current status of market sentiment on cryptocurrency investment and common problems encountered by investors? And; (4) What countermeasures can be proposed to the impact of market sentiment on cryptocurrency investment? Most of the respondents tended agreed about the current status of the market sentiment on cryptocurrency investment. Their responses tended to generally reflect their optimistic or "bullish" sentiment toward the market, that cryptocurrency holders are knowledgeable about the benefits of positive market outlook, and the market accurately predicted the volatility of cryptocurrency. The respondents were aware of the problems already reported in the literature, including cryptocurrency investment has become an avenue for illegal operations, the emergence of crypto scams, and the complexities of investing in cryptocurrencies. There was no significant correlation between market sentiment and problem encountered by investors. The respondents proposed some countermeasures to ameliorate some of the problems and challenges. The conclusions were confounded by Simpson's paradox. Further research is research to determine if the relationships between the current status of market sentiment on cryptocurrency investment vs. the common problems encountered by investors vary with respect to different mutually exclusive groups of investors.
Digital assets, including cryptocurrencies, non-fungible tokens, and digital tokens, are reshaping global economic systems by promoting financial inclusion, decentralized control, and technological innovation. However, their intangible, decentralized, and cross-border nature presents significant challenges to existing legal frameworks, leading to legal uncertainty, regulatory fragmentation, and enforcement difficulties. This study systematically analyzes the definitions, characteristics, and classifications of digital assets while examining the regulatory approaches of the United States, the European Union, the BRICS nations, and Singapore. By identifying key challenges such as security vulnerabilities, cross-border complexities, and market volatility, this paper proposes solutions including harmonized frameworks, enhanced consumer protections, technological innovations, and international collaboration. The findings emphasize the importance of a balanced regulatory approach that fosters innovation, ensures consumer protection, and supports market stability in the evolving digital asset ecosystem.
Ali Bukhtiar, Hafiz Abdul Rehman Saleem, Asif Iqbal, Muhammad Younas · 5 authors
The development of blockchain technology and its affiliated cryptocurrencies quickly changed the outlook for numerous industries; the most recent, however is that of the smart contract, a self-executing digital agreement whose terms of contract are followed by automatic execution on specific conditions. Yet, despite the huge potential to transform the way transactions are conducted, implementing smart contracts within blockchain and cryptocurrency systems faces a host of legal issues. The research discussed the core legal issues of smart contracts, primarily being a lack of clarity concerning the regulatory framework, lack of clear regulation of enforcement in the traditional legal system, and issues with dispute and accountability. In the same context, the article takes the reader on a journey about the intricacies involved in understanding party intent when using smart contracts. The coding of the contracts might not always capture all the nuances within an agreement. Moreover, certain issues such as the anonymity of a blockchain system, further add the complexity to define the parties at fault in breach or fraud circumstances. This study aims at understanding the junction of law and technology, to identify key barriers that need to be addressed so that smart contracts can be appropriately used in the blockchain and cryptocurrency ecosystem. This research will deliver findings on the adaptation of new digital technologies with legal frameworks for accommodating these newer digital technologies. Recommendations will then be given on how to overcome the problems that are present with the current technology.
The problem of international legal regulation of cryptocurrency circulation in the context of globalization and development of information technologies is considered. The main aspects of the jurisdiction of cryptocurrency exchanges and cryptocurrency storage nodes are analyzed, including legal and technical aspects of their work. Particular attention is paid to the process of seizing cryptocurrencies and international legal cooperation in this area.
The article examines key trends in the development of digital currencies in the context of the transformation of the global financial system. Based on a comparative analysis, central bank-controlled central digital currencies (CBDCs) and decentralized cryptocurrencies, primarily Bitcoin, are considered as alternative models of digital money. The fundamental differences between them are identified in terms of issuance mechanisms, level of regulatory support, degree of transparency and application of blockchain technologies.
Open access
Security, Politics, and Digital Transformation
Blockchain Technology Applications and Security
Economic, Social, and Public Health Issues in Russia and Globally
The article examines the definition of «cryptocurrency,» its legal status, and prospects for regulation in Ukraine. The authors analyze contemporary approaches to understanding cryptocurrency as a digital asset, considering it either as a new form of money or as an object of civil rights. Particular attention is paid to the provisions of the Law of Ukraine «On Virtual Assets,» adopted on February 17, 2022, and its significance in creating the legal foundation for cryptocurrency market regulation. However, it is emphasized that this law has not yet come into force due to the absence of corresponding amendments to tax legislation, complicating the legalization of cryptocurrency transactions. The distinction between «virtual assets» and «cryptocurrencies» is discussed, highlighting key limitations of existing legislation, particularly the prohibition on using virtual assets as a payment method in Ukraine. The article outlines issues such as the lack of a transparent regulatory environment and a taxation system, which hinder the development of the cryptocurrency market, reduce its investment appeal, and create risks for market participants. The article also analyzes international cryptocurrency regulation experiences, particularly in the United States, Canada, Japan, and the European Union. Special attention is devoted to the European regulation Markets in Crypto Assets (MiCA), which could serve as a foundation for developing a unified regulatory framework in Ukraine. The authors stress the importance of harmonizing Ukrainian legislation with European standards within the framework of European integration. The potential benefits of cryptocurrency legalization are highlighted, including attracting foreign investments, developing financial technologies, reducing the shadow economy, strengthening consumer protection, and creating new markets. Specific recommendations are provided to improve legislation, such as implementing transparent regulatory mechanisms, taxation, investor protection, and ensuring cybersecurity. This article is a significant contribution to the study of the prospects for the development of the cryptocurrency market in Ukraine, outlining the challenges and opportunities for integrating Ukraine’s financial system into the international space through the adoption of MiCA standards.