In an era of changing financial landscapes, the position of cryptocurrencies like Bitcoin as possible national currencies is worth investigating. This study investigates Bitcoin's adherence to currency criteria and its consequences for GDP development in a certain country. The mining industry plays a significant role in the GDP of many countries. The extraction of raw materials such as metals, minerals, and fossil fuels is essential for producing a wide range of goods and services. This generates jobs and tax revenues and supports economic growth. Understanding these processes is critical, given the ongoing debate about Bitcoin's place in modern economies. This research looks into Bitcoin's usefulness as a currency and its possible influence on a certain country's GDP. The results show that Bitcoin fits the requirements for money, acting as a means of exchange and a store of value, with features including mobility, divisibility, commensurability, and fungibility. When examining its influence on GDP, empirical data indicate that, while currency appreciation may provide the illusion of stronger GDP growth when denominated in foreign currency, it damages growth domestically. According to a neural network study, Bitcoin's large impact on GDP renders it unsuitable for use as a national currency in the Czech Republic. Despite matching currency criteria, Bitcoin's adoption confronts problems such as volatility, a lack of central authority, and its worldwide nature, which limit its usefulness in promoting national economic growth. This analysis emphasizes country selection and length restrictions, finding that Bitcoin's existing position as an investment instrument restricts its viability as a national currency.
Introduction. The implementation of the decentralization reform in Ukraine led to an increase in public interest in the indicators laid down in the budgets of territorial communities and the results of their execution. Problem Statement. Availability and openness of information about budgets as a prerequisite for effective control over public finances of territorial communities. Purpose. Analysis of legal acts that establish requirements for disclosure of information about local budgets, providing recommendations for ensuring compliance in practice with the principle of publicity and transparency of the budget process as an important prerequisite for effective control over public finances. Methods. General scientific methods are used, namely: description, comparison, monographic, theoretical generalization. Results. The legal documents regulating the implementation of the principle of publicity and transparency of the budget process in Ukraine are analyzed, the contradictory and ambiguous norms contained in such documents are outlined, the mistakes made by the authorized persons of local councils when disclosing information about budgets are emphasized, the possibilities that provided by the state web portal Open budget, methods of raising the state of awareness of interested persons on issues of budget formation and execution are substantiated. Conclusions. Part of the public data on issues of formation and execution of budgets of territorial communities still remains inaccessible to information users. Increasing the transparency of budgets with the creation of opportunities for full-fledged control of public funds will become possible under the condition of legislative consolidation of norms on the obligation of managers to publish information on budget and financial reporting on the execution of local budgets within the terms and according to the forms approved by the current orders of the Ministry of Finance of Ukraine, disclosure of information on budget expenditures and lending operations, grouped, among other things, by departmental classification, which will be a prerequisite for researchers to have a holistic view of spending budget funds. Public information about budget indicators on the websites of local councils should be systematized, submitted in formats that allow further processing of the published data with the possibility of simple and unlimited access to them.
Subject. This article discusses the development of the conceptual framework in the theory of finance in the context of digitalization. Objectives. The article aims to review and summarize the academic literature on decentralized finance (DeFi) and assess their impact on the development of the global financial system. Methods. For the study, we used the methods of comparative, logical and conceptual analyses, expert assessment, and the heuristic modeling. Results. Based on a review of scientific foreign and Russian financial literature regarding the concept of Decentralized Finance, the article finds that there is no single approach to this concept yet. Most authors associate decentralized finance with the use of innovative financial instruments based on distributed ledgers, and almost all researchers believe that the development of decentralized finance will lead to a change in the global financial architecture without the participation of financial intermediaries. The article proposes to separate the concepts of Decentralized Finance, Decentralized Financial Instruments, Decentralized Financial Technologies, which can help organize and sort out the research vocabulary, taking into account the transformation and changes in the global financial architecture. Conclusions and Relevance. The development of information technology has a serious impact on the financial sector and is accompanied by the transformation of old concepts and the emergence of new ones, including decentralized finance. The results expand the theoretical apparatus of modern financial theory, can be applied in areas related to the use of decentralized financial technologies and financial instruments, as well as in the formation of new training courses and for understanding trends in the development of the financial sector.
The article examines the impact of cryptocurrencies on the field of accounting and auditing, emphasizing the need to update existing methodologies in light of the digitalization of the economy. The development of the digital economy leads to the widespread use of electronic currencies. In the modern world, cryptocurrency is not only relevant as a form of electronic payments, but also promising for investments in the international market. In recent years, there has been an unprecedented increase in interest in cryptocurrencies as an innovative financial instrument, which has caused significant changes in traditional accounting and auditing approaches. The development of blockchain technology and an increase in the volume of transactions using cryptocurrencies stimulate the need to adapt accounting systems and audit procedures to new economic conditions. The article is dedicated to analyzing the advantages and disadvantages of cryptocurrencies, as well as developing new audit procedures adapted to the specifics of cryptocurrency transactions. The relevance of the topic is determined by the rapid penetration of crypto assets into the financial world and the challenges they pose for traditional accounting systems. It also necessitates the adaptation of accounting standards and auditing practices to new economic realities. The work uses a comprehensive approach, including the analysis of academic sources, regulatory documents, as well as expert opinions and practical case studies. The results show that the integration of cryptocurrencies requires standardization of accounting and updating of audit approaches, as well as raising the level of specialists' knowledge. The article offers recommendations that contribute to increasing the transparency of financial operations and strengthening investor confidence. This research is of interest to professionals in the field of financial accounting and auditing, as well as researchers studying the impact of digital technologies on economic processes.
This study examines blockchain technology (BCT) firms’ ownership structure and cash holding (CH). Using GMM on a sample of firms indexed on Blockchain50 in China during 2009–2022, findings show that Largest-shareholders minimise CH, indicating corporate expansion. Due to their monitoring motive, Top10-shareholders allow corporations to maintain large cash. To prevent currency misuse, institutional ownership and CH are negatively related. Managerial ownership favours, while the chairman ownership lowers CH, supporting the interest alignment theory. Pre- and post-BCT index period analyses demonstrate a weak post-index period influence. The BCT adaptation lessens information asymmetry and aids in reducing agency issues through quick information flow, limiting owners’ influence. This study adds empirical evidence on ownership structure and CH. The study's findings may apply to developing market enterprises employing BCT's corporate governance structures.
Ensuring economic growth is a necessary condition for the successful socio-economic development of the country as a whole. This requires the activation of the role of public finance and public investment for the development and activation of processes in local self-government bodies, the state and local business as a key factor that determines the dynamics of capital in the economy and has an impact on the pace and nature of economic growth. At the same time, public investment can be considered as a management tool for promoting sustainable development. In conditions of socioeconomic instability, public finances are an important component of the financial system, which cannot adapt to changes automatically. The inertia of public finances generates additional risks notonly for the resource provision of the state's functioning, but also leads to a number of negative phenomena of a macroeconomic and social nature. Under these conditions, the budget is not only an important instrument of the state, through which monitoring of the state of public production and provision of social guarantees to the population is ensured, but also stabilization of the financial system as a whole is carried out. The article proves that an important determinant of socio-economic development of regions is financial decentralization, which contributes, on the one hand, to reducing the role of the state in their financial support, and on the other hand, creates opportunities for strengthening the autonomy of local budgets. The article substantiates the main methods of attracting public investment in the region, namely: regulatory and legal support; allocation of priorities for the selection of investment projects; definition and use of mechanisms for supporting investment activity; development of an investment passport; creation of a separate investment promotion service. A comprehensive analysis of the current state of the public finance system makes it possible to derive some limitations and criteria for the organization of relations between the fiscal and monetary systems in the context of current tasks of socio-economic development
Юлія Кривенко, Вячеслав Бізянов, Олександр Секретар
Стаття присвячена дослідженню інноваційних інструментів фінансового ринку в системі міжнародних розрахунків. Зокрема, досліджувалися переваги використання інноваційних фінансових інструментів порівняно з традиційними методами. Крім того, у статті аналізуються ризики та виклики, пов’язані з впровадженням інноваційних інструментів. У статті розглянуто такі інноваційні інструменти фінансового ринку, як блокчейн і криптовалюти (Bitcoin і Ethereum), фінтех-платформи (PayPal, TransferWise (зараз Wise) та Revolut), цифрові валюти центральних банків (CBDC), смарт-контракти, АРІ та відкриті банківські рішення, Big Data, аналітика та штучний інтелект (Al) і машинне навчання та роботизована автоматизація процесів (RPA). Проаналізовано використання інноваційних інструментів фінансового ринку в світі.
The decentralized anonymous cryptocurrency is a new kind of technology that can be used for many purposes such as transferring money and investing. However, they do not have a legal entity that is in charge monitoring its uses. Its extraordinary rise raises critical questions such as, should we regulate it or ban it? Since its purposes have been converted from an anonymous payment system to a tool that is used in illegal actions and undermining financial standards. This paper seeks CC regulation options. Plus, it attempts to lay out the various risks they pose and benefits they bring with the technology they use (blockchain). The objective is to investigate which approach will be more reasonable for the country’s conditions. The regulators will try to convince CC service providers to obey rules and operate under official standards, while banners restrict the new instrument’s integration with the financial system. The study relied on the descriptive approach to achieve its objectives. The recent literature and publications of the most important related bodies around the world were reviewed. Findings reveal that it is too early for CCs to be considered legal tender. Moreover, both approaches could be adopted according to the country’s conditions. Plus, alternatives may have their say. Some suggestions are made for local agencies and investors.
Aim. To study and describe the main trends in the development of the world market of digital financial assets in the conditions of digital transformation. Objectives. To disclose the essence and role of digital transformation at the present stage; to consider the emergence of digital financial assets and the possibilities of their application against the background of high growth rates of the cryptoasset market; to analyze the main indicators of digital currencies as of February 2024; to identify the key characteristics of the use of cryptocurrencies by different countries; to rank countries according to the index of cryptocurrency ownership for 2023; to describe the development trends of the circulation of digital financial assets in the world in the conditions of digital transformation. Methods. The study uses complex and logical approaches, general scientific methods (analysis, synthesis), methods of comparative and economic analysis, analytical processing and graphical presentation of information. Results . The leading trends in the development of the global market of digital financial assets in the conditions of digital transformation have been considered. The indicators of the top 10 largest digital currencies by market capitalization are highlighted. Based on the results of the study, the ranking of countries by the index of cryptocurrency ownership for 2023 was compiled. The main indicators of digital currencies for February 2024 were analyzed. The key characteristics of cryptocurrency use by different countries in the context of high rate of digital transformation were described. Conclusions. The results of the conducted research allowed us to conclude that the current transformation of the global economy, associated with the active development of breakthrough technologies, including distributed ledger technologies (DLT) and blockchain, has become a trigger for the emergence of digital financial assets and expanded the possibilities of their application in the context of high growth rate of the cryptoasset market. The analysis of the current state and development of the circulation of digital financial assets in the world under the conditions of digital transformation shows the growing interest in the use of cryptocurrencies and the introduction of blockchain technologies in the financial systems of various countries, as well as the growing use of cryptocurrencies by companies and individuals. Taking into account the review of global trends, development of fintech technologies, the conclusion is made about the inevitability of the processes of digitalization of financial assets, the emergence of new forms of digital assets, which dictate the need for advanced development of their legal regulation. In the future, the development of digital assets will give them the official status of a means of payment and expand their use in the system of financial relations in the conditions of digital transformation both in Russia and abroad.
The article highlights the results of a study of the specifics of public finance management in the context of the dynamic development of Ukraine's tokenized economy. It is substantiated that with the beginning of Russia's full-scale military aggression against Ukraine, budget revenues have significantly decreased and expenditures have begun to grow rapidly, which has led to significant imbalances in public finances and a significant increase in the budget deficit, which today has to be covered mainly from external sources. The author emphasizes that one of the alternative options for filling the budget revenues is taxation of the crypto industry, which has been developing rapidly and has become one of the TOP-5 countries in the world of cryptocurrency introduction in recent years. The author reviews the novelties of domestic legislation in the field of regulation of circulation of virtual assets and emphasis is the presence of contradictions in them with regard to the interpretation of their content and functions. The author identifies specific features of virtual assets and proves that they should be considered as an expression of the value of digital things created using the technology of a distributed ledger or other similar technology that allows their issue, transfer and storage in a decentralized manner, without the need to involve traditional financial intermediaries or centralized administrators. The author studies the global experience of taxation of virtual assets. It is substantiated that Ukraine should choose a policy of moderate regulation of the virtual asset market, capable of ensuring both budget revenues and control over the income from transactions with virtual assets. The author develops proposals for accelerating the introduction of the mechanism of taxation of virtual assets turnover as one of the alternative sources of formation of the state revenues of the country and successful implementation of the policy of moderate regulation of the virtual assets market.
Оксана Володимирівна Старчук, Надія Федорівна Чубоха, Artur Androsovych
Introduction. Currently, there is an urgent need to regulate the functioning of cryptocurrency markets in the context of the evolution of social relations. The rejection of the bill aimed at regulating the cryptocurrency market does not have sufficient financial and legal justification, as evidenced by expert opinions and textual analysis, which revealed the narrow approach of the drafters of the bill to solving cryptocurrency issues. Moreover, since the current law of Ukraine "On Virtual Assets" defines cryptocurrencies as unsecured virtual assets, the issue of cryptocurrencies is practically removed from the agenda. At a time when the war with Russia has begun, and the general defense and financial security of Ukraine needs to be strengthened by the state and government, it seems unjustified to ignore not only threats to national security, but also potential sources of financial growth. The purpose of the paper is to clarify the legislative framework regarding cryptocurrencies and the legal status of cryptocurrency market participants in Ukraine. Results. The paper examines the peculiarities of the development of financial and legal regulation of the cryptocurrency market in connection with globalization processes. The main attention is paid to the problems that arise in connection with attempts to solve the issue of regulation of the crypto-currency market partially at the national legislative level, without actively promoting it at the international level. It is shown that international cooperation in the field of regulation of cryptocurrency markets should be based on the principles of international law. In the context of regulating the functioning of cryptocurrency markets in the context of globalization, a set of principles has been formed that can be worked on to harmonize national and international interests. Conclusion. Since the cryptocurrency market is an important component of the transnational global economy, an important condition for the effective response of law-making bodies to dynamic changes in social relations in the context of globalization is the timely formulation of the principles of development of the financial and legal regulation of the cryptocurrency market at various levels. It is argued that this should happen through the timely formulation and implementation of the principles of financial and legal regulation of the cryptocurrency market at various levels.
Ростовский государственный экономический университет (РИНХ), Ростов-на-Дону, Россия, Евлахова Юлия Сергеевна
The article considers non- fungible tokens as one of the types of digital financial assets. The purpose of the article is to study the modern NFT ecosystem and analyze the parameters of the NFT market. The indicators published in the analytical reports of the NFTGO consulting company, as well as scientific publications, were used. The definitions of the term "non- fungible token" are summarized, the criterion for classifying NFT objects is formulated; the participants of the NFT market are considered, the distinctive features of this market are highlighted. Based on the results of a quantitative analysis of the indicators of market capitalization and trading volume, conclusions were drawn about the NFT market in 2022. The elements of the NFT ecosystem are characterized, among which the development of NFT finance is the most promising.
Introduction. As organizations undergo digital transformation, the field of accounting and auditing is experiencing substantial changes. The potential of integrating blockchain technologies into accounting and auditing practices has been explored to identify innovative opportunities arising within the context of the ongoing digital revolution. The purpose of the paper is to analyze the innovative possibilities of utilizing blockchain technologies in accounting and auditing amidst the digital transformation. Results. The concept of blockchain technologies has emerged as a revolutionary and transformative force in the realm of digital innovations. Essentially, blockchain is a decentralized and distributed ledger technology that securely and transparently records transactions across a network of computers. This innovative approach to data management has the potential to reshape various industries, offering numerous advantages such as enhanced security, transparency, and efficiency. Analysis indicates that blockchain technologies present numerous innovative opportunities in the field of accounting and auditing. Immutable ledgers, smart contracts, and decentralized consensus mechanisms form the basis for improved data accuracy, fraud prevention, and real-time financial reporting. Furthermore, blockchain's capacity to streamline reconciliation processes and facilitate seamless information exchange among stakeholders provides significant advantages for both accountants and auditors. Conclusions. Blockchain technologies offer innovative opportunities for a revolutionary transformation of accounting and auditing practices in the era of digital transformation. The decentralized and transparent nature of blockchain enhances the reliability and efficiency of financial record-keeping, while smart contracts automate routine processes. While organizations grapple with implementation and regulatory challenges, the potential benefits of blockchain in accounting and auditing signal a shift in paradigm towards a more secure, efficient, and reliable financial ecosystem. As organizations navigate the digital transformation landscape, the adoption of blockchain in accounting and auditing practices becomes a strategic imperative to ensure financial integrity and transparency in the modern era.
Svitlana Volosovych, Mariia Nezhyva, Antonina Vasylenko, Л. С. Морозова · 5 authors
The Russian-Ukrainian war transformed the needs of consumers of financial services, both in Ukraine and abroad. On the one hand, the civilian population and the Armed Forces of Ukraine needed immediate help from the international community. On the other hand, individual and institutional investors were concerned about threats to traditional financial investments. The purpose of the article is to identify the priority directions for the development of the cryptocurrency asset market against the background of the Russian-Ukrainian war. The article presents an analysis of the cryptocurrency asset market with an emphasis on its structural changes in the conditions of the Russian-Ukrainian war. In the study, a survey was conducted to find out the impact of the war on the Ukrainian cryptocurrency market. The analysis of the survey results substantiates the hypothesis about the impact of increased hacking attacks by pro-Russian forces and missile attacks on the functioning of the cryptocurrency market in Ukraine. It has been confirmed that investments and payments are promising segments of the cryptocurrency market in Ukraine, in which, the most interested users and potential users of cryptocurrency are. Based on the received data, the weaknesses and strengths of the functioning of the cryptocurrency market in the conditions of war were identified. Threats and opportunities for the development of the cryptocurrency market against the background of Russian armed aggression are substantiated. The conducted research made it possible to formulate scenarios for the development of the cryptocurrency asset market in Ukraine in war conditions and the conditions for their implementation.
Full-scale hostilities have had a significant impact on the budget system due to increased spending on defense, reconstruction, and humanitarian assistance to vulnerable groups, which has affected the accumulation of budgetary resources. The article examines the impact of extraordinary challenges and threats on the national budget system, in particular, on the structure and volume of budget revenues and expenditures, the growth of the budget deficit and public debt, changes in regulation in the field of public finance, and the potential of financial capabilities of the regions. The purpose of the article is to make a scientific and practical assessment of the problematic aspects related to the transformation of the budget system, to outline the ways of attracting financial resources that can be used for the purpose of distribution and redistribution to perform the functions of the State, to identify the main areas of influence of emergency challenges and threats on the budget system of Ukraine and the priority areas and measures of budget policy in wartime.The authors conclude that the strategic and main directions of Ukraine's development need to be improved in the strategy of public finance management and financial and economic security as part of the implementation of the Memorandum of Economic and Financial Policies by the IMF. At the same time, the relevant legislative changes to the state budget for 2023 that meet the needs of Ukraine are studied, and the implementation of the first preparatory stage for the development of the National Revenue Strategy is analyzed. The authors emphasize the positive impact of decentralization on local self-government and the financial sustainability of local budgets. It is proposed to empower communities through monitoring the implementation of local budgets. In the context of defense needs, the possibility of including defense expenditures during martial law in local budgets is considered.
Introduction.Introduction.Nowadays, consumers are increasingly interested in cryptocurrency assets for various financial transactions.These transactions are associated with certain risks.This requires the identification of ways to manage them.Purpose.The purpose of the article is to identify and systematize the risks of the market of virtual assets, and identify the possibilities of their insurance.The classification of risks of cryptocurrency assets was proposed according to such features as areas of occurrence, nature of losses received, subjects of the cryptocurrency asset market, types of cryptocurrency operations, composition of the object, composition of subjects of the cryptocurrency asset market, connection of the risk with other types of it, levels of financial losses when carrying out transactions with cryptocurrency assets, possibility of management.The components of operational risks in the market of cryptocurrency assets were proposed.The main risks for miners, investors, traders, owners of cryptocurrency wallets and participants in the infrastructure of the market of cryptocurrency assets were identified.It was found that the limiting factors for the development of cryptocurrency risk insurance are problems with the assessment of insurance risks, problems with the determination of the identity of the insured, the problem of the possible anonymity of the owners of crypto wallets.Conclusions.The risk of cryptocurrency assets can be considered in a broad and narrow sense.In a broad sense, the risk of cryptocurrency assets is the probability of the occurrence of certain events, as a result of which there is a possibility of obtaining negative, zero or positive economic results.In a narrower sense, the risk of cryptocurrency assets is the probability of their total or partial loss under conditions of uncertainty.Operational risk has the most significant impact on the subjects of the cryptocurrency market.The possibility of insuring the risks of cryptocurrency asset market participants will help increase the safety of cryptocurrency transactions.At the same time, this will lead to the growth of trust in cryptocurrency.
The growth of state transfers to offset disparities in regional development affects the stability of the country’s financial system. This article delves into this outcome, empirically analyzing whether the transfer system for horizontal fiscal alignment leads to decreased financial system stability through increased borrowing at municipal and national levels. To test this hypothesis, we employ a quasi-experimental analysis strategy, examining potential scenarios of configuring transfers to Ukrainian municipalities for addressing horizontal fiscal imbalance. Across various transfer calculation scenarios involving changes in the calculation period, the number of budgets in consideration, and the alignment subject, we find that a suboptimal system of horizontal fiscal alignment, transferring funds from financially secure municipalities to insecure ones, leads to a rise in the public finance debt, subsequently decreasing financial system stability. Additionally, we discover that the current mechanism in Ukraine for horizontal fiscal alignment, designed to mitigate inequalities in socio-economic development among communities and regions, paradoxically exacerbates these disparities, artificially inflates indicators of decentralization reform success, and undermines public finance stability.
Научная статья посвящена актуальным вопросам финансирования природоохранных мероприятий в современных условиях. Рассмотрены процессы децентрализации управления в сфере охраны окружающей среды, обеспечивающие большую роль региональных органов в управлении природоохранной деятельностью. Показана динамика расходов бюджетов всех уровней на охрану окружающей среды. Выделены государственные программы посвященные охране окружающей среды с соответствующими мероприятиями и финансированием. Доказано, что партнерство между государственными и частными структурами может способствовать улучшению эффективности использования средств, а также разработке более инновационных подходов к решению экологических проблем. Делается вывод и необходимости использования инструментов экономической стимуляции для привлечения частных инвестиций в охрану окружающей среды с целью обеспечения экологической устойчивости между государственным и частным секторами. Отмечена необходимость обеспечения прозрачности использования финансовых ресурсов и их целевой направленности для решения конкретных экологических проблем. The scientific article is devoted to topical issues of financing environmental protection measures in modern conditions. The processes of decentralization of management in the field of environmental protection are considered, ensuring a greater role for regional authorities in the management of environmental activities. The dynamics of budget expenditures at all levels on environmental protection is shown. State programs dedicated to environmental protection with corresponding activities and financing have been identified. It has been proven that public-private partnerships can help improve the efficiency of use of funds, as well as the development of more innovative approaches to solving environmental problems. It is also concluded that it is necessary to use economic stimulation tools to attract private investment in environmental protection in order to ensure environmental sustainability between the public and private sectors. The need to ensure transparency in the use of financial resources and their target orientation to solve specific environmental problems was noted.
International Scientific Conference Transformation processes of the economic system in the context of modern challenges : Conference Proceedings (February 2–3, 2024. Klaipeda, Lithuania). Riga, Latvia : Baltija Publishing, 292 pages.
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.
In Ukraine, the regulation of cryptocurrencies is still in the formative stage. Over the past few years, significant steps have been taken toward legalizing the cryptocurrency market, including the adoption of the "On Virtual Assets" law, which has been a crucial step toward regulating this segment of the financial market. However, despite considerable progress, challenges remain. It is necessary to ensure the harmonization of national legislation with international standards, which is essential for Ukraine's integration into the global financial system and for attracting investment. The development of cryptocurrencies and financial technologies has a significant impact on traditional financial systems. They open up new opportunities for investors and businesses by reducing the costs of financial transactions and increasing access to financial services. However, these innovations also create new challenges related to security, fraud, and maintaining financial stability. The growing popularity of cryptocurrencies forces regulators to adapt their approaches and implement new control mechanisms. Regulating cryptocurrencies in the EU and Ukraine is a complex and multifaceted process that requires consideration of financial stability, security, and regulatory requirements. On the one hand, EU countries strive to create a unified legal framework for cryptocurrencies that will ensure transparency and reliability in the market. On the other hand, Ukraine is taking its first steps toward regulating this new financial instrument, focusing on integrating with international standards and adapting to new challenges associated with the development of financial technologies. However, to succeed in regulating the cryptocurrency market, a number of key issues need to be addressed. One of the most important aspects is ensuring the proper protection of consumer and investor rights. This includes the implementation of effective mechanisms to protect against fraud, illegal financial transactions, and abuses related to cryptocurrencies. Another important issue is the taxation of transactions involving virtual assets, which requires government agencies to develop clear rules and procedures.
The article examines the history of the emergence of blockchain technology in order to understand its widespread implementation in many areas of modern human activity. It is defined that blockchain technology can be used to create an immutable or perpetual ledger for tracking orders, payments, invoices and other transactions. Thus, the researched technology is suitable for use in the field of finance and accounting. At its core, blockchain represents a type of distributed ledger technology, which is based on a token as an accounting object. This opens up opportunities for faster and more efficient financial transactions, as well as for the creation of new types of financial instruments. As a result of the study, the features of this innovative technology are revealed, namely: decentralization and immutability of data. The widespread use of blockchain technology in various fields has not bypassed auditing. In accounting and auditing, blockchain can serve as the basis for decentralized accounting systems, where every transaction is recorded and stored in on-chain blocks, ensuring that they are immutable and consistent. This can facilitate auditing, promote accounting accuracy, and provide greater transparency in financial operations. It is substantiated that the introduction of blockchain technology by auditing entities has a number of advantages and risks, which are described in the presented methodological study. Prospects for further research in this direction are to determine the efficiency of the use of the latest information technologies in the work of auditing entities and assess the potential risks that can arise in the auditing process.