The rapid development of the cryptocurrency market forces states around the world to look for effective mechanisms for legal regulation of this new financial reality. In addition, Russian citizens are active users of online platforms that trade cryptocurrencies. Thus, the urgent task of the Russian Federation at the present stage of its development is to find the optimal cryptocurrencies legal regulation. Purpose: to analyse trends and prospects of cryptocurrencies legal regulation, including various approaches to legal regulation, counting abroad. Methods: comparative analysis of the legal regulation of cryptocurrencies in various jurisdictions, as well as a study of technological solutions used abroad. Results: the study made it possible to analyse legislative initiatives regarding cryptocurrencies, from a liberal approach to a complete ban. It also reflected the need to maintain a difficult balance between the desire to protect investors, fight crime, and encourage innovation in the digital economy.
The rapid proliferation of digital financial assets heightens companies’ need for verifiable transparency of operations and timely control, while a gap persists in corporate practice between the use of digital tools and audit maturity, which is especially evident among enterprises of the agro-industrial complex. The aim of the study is to substantiate an approach to auditing and the provability of transactions with digital assets through a combination of cryptographic methods and continuous monitoring aimed at reducing financial and operational risks. The methodological basis includes a comparative analysis of traditional and streaming control procedures, statistical assessment of inspection frequency, anomaly-detection latency, and transaction coverage, as well as qualitative risk appraisal considering the applicability of distributed ledgers, digital signatures, multisignatures, and confidential zero-knowledge proofs. The results have been obtained confirming the advantage of continuous auditing of key metrics, the proportion of operations being audited increases to almost complete coverage, which is accompanied by more frequent detection of violations as a result of better observability of processes. It is established that blockchain provides high traceability and immutability of records; however, overall risk remains dependent on vulnerabilities in key-storage infrastructure and the quality of smart-contract configuration; therefore, organizational regulations for segregation of duties, backup procedures, and staff training are required. The scientific novelty is expressed in integrating cryptographic verification with streaming control as a unified provability framework, in which the digital record is treated as a verifiable artifact and a source of real-time audit evidence. The practical significance lies in proposing a set of implementation rules that help synchronize accounting and control, increase trust among investors and regulators, reduce relative losses from fraud, and lay the groundwork for subsequent automation of consistency tests and visual analytics for managerial decision-making.
The article examines the influence of institutional concentration of cryptocurrency assets on the monetary sovereignty of states. It is argued that the centralized control over decentralized assets contradicts the original concept of cryptocurrencies and creates new geopolitical risks for monetary policy implementation. The growing involvement of institutional investors, such as hedge funds, asset managers, and ETF providers, contributes to the formation of shadow monetary channels that bypass national regulatory frameworks. The study analyzes how the dominance of actors like BlackRock in Bitcoin ownership affects financial stability, market volatility, and the ability of central banks to maintain effective control over the money supply. The article explores the transformation of cryptocurrencies from alternative financial tools into strategic instruments of global financial influence. It reveals that the institutionalization of crypto-assets increases systemic risk and undermines the traditional mechanisms of monetary transmission. Attention is paid to the asymmetric vulnerability of developing economies in the face of capital outflows triggered by movements on crypto markets. The paper proposes policy recommendations for enhancing monetary resilience through the development of regulatory frameworks, improvement of macroprudential supervision, and international cooperation in digital asset governance. It is concluded that maintaining monetary sovereignty requires a new paradigm of policy coordination in the age of decentralized but institutionally controlled financial instruments. The research emphasizes that concentrated ownership patterns in cryptocurrency markets create unprecedented challenges for traditional monetary theory and practice. The analysis demonstrates how large institutional players can manipulate market dynamics, potentially destabilizing national currencies and compromising central bank independence. Furthermore, the study investigates the implications of cross-border crypto transactions for capital flow management and exchange rate stability. Special attention is given to the role of stablecoins as potential substitutes for sovereign currencies in emerging markets. The paper argues that without proper regulatory intervention, the institutional capture of decentralized finance could lead to a new form of financial colonialism. It highlights the need for central banks to develop digital currency alternatives and strengthen their technological capabilities to compete with private crypto initiatives. The research concludes with recommendations for multilateral approaches to crypto governance that preserve national monetary autonomy while fostering innovation in digital finance.
The article discusses the legal regulation of operations with cryptocurrency, which functions with the help of blockchain technology. It has been determined that blockchain technology will not only revolutionize financial spheres, but also has the potential to change approaches to data management, cybersecurity, logistics, medicine and other industries. Based on the principles of decentralization and security, it opens up new opportunities for optimizing business processes and ensuring transparency in other sectors of society. Purpose. It consists in an in-depth study of the essence of cryptocurrencies through the analysis of international experience regarding their legal regulation. In addition, the work is aimed at the development of specific proposals and prospects for the further development of the legal regulation of cryptocurrencies in Ukraine. Scientific novelty. It is noted that the development and expansion of the use of blockchain technology in Ukraine indicate a rapid process of adaptation to the digital age and define the country as a promising participant in the global innovation movement. It has been proven that outside of the financial sector, blockchain technology can serve as an effective tool for voting platforms and document and title management, which can contribute to improving the processes of democracy and administration. It is noted that Ukraine, being a supporter of digital innovations, is already implementing blockchain in public spheres, such as SETAM and the state land cadastre. However, the main application of blockchain in Ukraine in the public sphere is currently the cryptocurrency market, which is currently regulated by the Law of Ukraine "On Virtual Assets". Methods and methodology. In the course of the research, such methods as analysis and synthesis, methods of historical and logical modeling were used. Theoretical approaches were also applied, in particular the method of formalization and the method "from abstract to concrete". Results. In the proposed article, special attention is paid to the analysis of aspects of the practical application of the legal mechanism of the cryptocurrency market. Conclusions. The national legislation on the regulation of the cryptocurrency market in Ukraine needs improvement. This may include implementing a taxation system for cryptocurrency and defining a clear legal status for this type of digital asset. It is also important to determine the algorithm of actions for transactions with cryptocurrencies and establish transparent rules for their regulation. The creation of dedicated regulatory bodies that specialize in digital currency matters could contribute to more effective oversight of the industry. These authorities may be responsible for advising users, issuing licenses and controlling processes related to the use of cryptocurrencies, including money laundering prevention.
Purpose : This paper explores the emerging role of cryptocurrencies as a distinct asset class within the financial landscape. As digital currencies gain traction among investors and institutions, it becomes essential to analyze their unique characteristics, volatility, and potential for diversification compared to traditional asset classes such as stocks and bonds. The study examines the historical evolution of cryptocurrencies, their investment potential, and the impact of regulatory frameworks on market dynamics. Additionally, it investigates the increasing adoption of cryptocurrencies by institutional investors and the challenges they face, including market volatility and security risks. Ultimately, this research aims to provide a comprehensive understanding of cryptocurrencies as a legitimate asset class and their implications for future investment strategies.
Blockchain technology, a revolutionary innovation built on the principles of distributed ledgers and consensus algorithms, has been the driving force behind the meteoric rise of cryptocurrencies.What was once considered a niche concept has now become an integral part of the global economic fabric, captivating the attention of investors, institutions, and policymakers alike.However, their unique nature challenges traditional accounting frameworks.This paper reviews the domestic and international research on the accounting treatment of cryptocurrencies.Globally, the accounting recognition of cryptocurrencies varies.They are often classified as financial assets or intangible assets depending on their usage.Measurement models, such as the historical cost method, fair value method, and intangible asset revaluation model, all have their own advantages and disadvantages.Currently, the information disclosure regarding cryptocurrencies is fragmented, lacking a unified standard.To tackle these issues, future research should focus on leveraging the distributed ledger technology of blockchain to enhance accounting transparency and establish consistent information disclosure norms.This will improve the quality of financial reports, support informed decision-making, and promote the standardization of cryptocurrency accounting.
This study analyzes current development trends and regulatory approaches to the global cryptocurrency market within the context of digitalization and the transformation of the financial system. The work provides a detailed characterization and classification of key types of crypto-assets (Bitcoin, Ether, stablecoins, altcoins, and tokens), defining their functions as means of payment, investment objects, and components of decentralized finance. Based on statistics from authoritative international organizations, the market dynamics, its capitalization, and geographical distribution were examined. Key identified problems include the absence of unified international regulatory standards, the risk of money laundering, cyber threats, and high volatility. As a prospect, the necessity of a balanced approach combining innovation and security through the harmonization of legislation, strengthening international cooperation, and the legitimization of crypto instruments is substantiated. The results of the study deepen the understanding of the role of digital assets in the economy and serve as a basis for developing effective state policy in the field of financial innovation.
Venera S. Abdulgazis, Viktor V. Chepurko, Tatyana N. Skorobogatova
This article examines the emergence of cryptocurrency in the global financial market, classifying virtual currencies by characteristics (purpose, consensus mechanism, type of collateral, level of anonymity and technology, etc.), types (platforms, stablecoins, utility tokens, assetbacked and anonymous, etc.), and entities, providing examples in each group. The article presents the fundamental principles underlying their operation and ensuring their functioning, including decentralization, blockchain, cryptography, mining, transactions, and security. The importance of classifying the operating principles of cryptocurrencies is determined in the context of taxation specifics in various countries, such as the USA and EU, the UK and Singapore, and countries where cryptocurrency circulation is prohibited are also identified. The article offers recommendations for improving domestic legislative initiatives in the field of cryptocurrency regulation.
This article examines the development of a new digital asset management architecture based on distributed ledger technologies as a systemic tool for digital economic transformation. It highlights the impact of blockchain on the technological, organizational, economic, and institutional levels of governance, allowing for the interpretation of distributed ledgers as a trust infrastructure amid the growth of digital platforms, tokenization, and the increasing importance of digital rights protection. It is argued that blockchain implementation leads to reduced transaction costs, increased data reliability, and the sustainability of economic systems, consistent with the logic of systemic and neo-institutional theory. The study hypothesizes that the systemic integration of blockchain technologies can facilitate the transition of economic systems to a model of distributed, transparent, and cost-effective digital asset management, serving as a key factor in increasing investment attractiveness and the sustainability of socioeconomic development.
Stablecoins are transforming from niche crypto instruments to critical programmable infrastructure, with profound implications for global finance and business strategy. By enabling instantaneous, low-cost settlement, they bridge disparate domestic payment systems, dismantle inefficiencies in entrenched card networks and legacy rails, and unlock decentralized finance applications. This analysis delineates the core stablecoin archetypes - fully reserved variants, deposit tokens, tokenized money-market funds and algorithmic constructs - assessing their trade-offs in reserve robustness, consumer protection, regulatory compliance and long-term business viability. The paper then charts five geopolitical pathways, ranging from a lightly upgraded Bretton Woods order to fragmented multipolar or more chaotic monetary regimes, unpacking how these trajectories could propel or impede stablecoin adoption.
Digital identity has become one of the most pressing governance challenges of the 21st century. This paper argues that digital identity is not optional but inevitable, driven by four converging forces: privacy leakage, AI synthesis, corporate capture, and geopolitical vulnerability. Drawing on political philosophy (Rousseau, Rawls, Foucault, Habermas), comparative case analysis (Estonia, India, China), and emerging technical frameworks (zero-knowledge proofs, decentralized identity), the paper analyzes the opportunities and perils of digital ID systems. It proposes a Digital Social Contract as the normative and institutional framework for governing them. The paper concludes that the decisive question is not whether digital IDs will exist, but how they will be governed — and that only a robust Digital Social Contract, grounded in democratic legitimacy, institutional accountability, and adaptive governance, can ensure that digital identity serves citizens rather than controls them.
Cryptocurrencies are often portrayed as volatile, lightly regulated, or tools for illicit activity. This view overlooks a deeper innovation: the Crypto-Body, a self-sustaining digital ledger system that is essentially a programmable and consensus-governed architecture for recording and automating diverse data and functions. Beyond serving as a store of value or payment rail, a Crypto-Body operates as a programmable institutional substrate whose rules are guaranteed by cryptographic verification. It validates data and transactions, allocates value and credit, enables exchange of verifiable digital assets, and coordinates these activities via energy and computation across individuals, firms, governments, and organizations; all while preserving anonymity and user privacy through pseudonymous identifiers and selective disclosure (e.g., zero-knowledge proofs), and still permitting auditability and legal compliance where required.
Serhiі Petrukha, Nina M. Petrukha, Bohdan O. Hudenko
The article provides an interdisciplinary theoretical analysis of the system of financial support for military volunteer formations of territorial communities (MVFTCs) in the context of classical and modern conceptions of financing the security and defense sector. It is noted that in the context of hybrid and asymmetric threats, volunteer structures play an important role in ensuring national resilience, and their financial support is of particular importance from the point of view of public policy, social justice, and public legitimacy. The basic models of security force financing – centralized, decentralized, and mixed – are considered, and the place of MVFTCs within the hybrid defense architecture is determined. The article systematizes the typology of possible models for financing the MVFTCs (State-based, volunteer, private, hybrid, self-financing) and analyzes their advantages and risks. Particular attention is paid to normative and value aspects: legitimacy, fairness, recognition of the subjectivity of volunteers, and the symbolic significance of material support. The interconnection between the internal motivation of participants in formations, social identity, and the influence of external incentives, in particular monetary rewards, is revealed. It is argued that excessive financial incentives without taking moral factors into account can lead to a crowding-out effect on motivation. The thesis is put forward that an effective model for ensuring the functioning of the MVFTCs should combine material, legal, and moral instruments to ensure both the combat readiness of the formations and support from both the State and civil society. The conclusion is made about the need for legislative regulation of the status of the MVFTCs and their integration into the general system of defense financing.
Abstract The Internet has significantly transformed society, fostering technological literacy and reshaping business transactions through advancements like blockchain and distributed ledger technologies (DLT). Traditional business concepts are evolving as users increasingly engage with digital identities and smart contracts. This introductory chapter outlines the legal frameworks for emerging digital assets, identities, and the Internet of Value, with a focus on the European context, particularly Spain. Despite the rise of Big Tech, which centralises data, there are persistent trends towards decentralisation, exemplified by peer-to-peer networks and blockchain. These developments raise concerns about the monopolisation of digital infrastructure and the potential need for a “new social contract” regarding digital identity and ownership. Regulatory frameworks must adapt to address the unique legal and security challenges posed by cryptocurrencies and digital assets. As Europe navigates this transformation, initiatives like the Markets in Crypto-assets Regulation (MiCA) and the Digital Euro Package aim to create coherent legal structures. This work emphasises the importance of securing trust in the digital economy while considering the implications of emerging technologies and the evolving landscape of digital finance.
The business world is seeing towards the cryptocurrency as a future currency. A very less literature is available on cryptocurrencies. This research paper focused on the concept, features, history and the mechanism of cryptocurrency. It also discussed the current status of cryptocurrencies in India and some leading cryptocurrencies with their market cap. While considering cryptocurrency as a digital investment, its pros and cons are to be kept in mind, which are also included in this research paper.