The article studies the structure of public finances, presents their principles, functions and content of the process and interrelations between the cycles of their accumulation, formation and distribution. The levels of public finance are presented taking into account the principles of client-oriented state. The priority directions of optimization of public finances and change of their role in the issue of development of social sphere of economy are formulated. The conducted research gives grounds to assert that in modern conditions the public finance system is based on decentralization, delegation of powers and responsibilities to the local level of management.
Abstract. The article is devoted to the analysis of global experience in the taxation of cryptocurrencies and the development of effective tax administration mechanisms. The object of the research is the taxation mechanism of the countries of the world that have legalized cryptocurrency. The purpose of the work is to study and analyze the global experience of cryptocurrency taxation and the possibility of introducing effective tax administration mechanisms in Ukraine. The research method is a theoretical and analytical substantiation of the functioning of the cryptocurrency market in certain countries and their taxation mechanisms. The need to develop efficient and effective tax administration mechanisms and ensure the stability of tax legislation is an objective prerequisite for ensuring the transparency and fairness of taxation of cryptocurrencies. The scientific article examines the peculiarities of the global experience of taxation of cryptocurrencies, which play a significant role in the processes of international movement of capital, forming relevant financial flows, and contributing to the capitalization of resources. The issues of taxation of cryptocurrencies are relevant on the path of the country's integration into the world community, insufficiently considered in modern conditions and requiring in-depth research and improvement. In the course of the study, the experience of cryptocurrency taxation in certain countries was summarized and the opportunities opened up due to the introduction of various cryptocurrency taxation tools were highlighted. The issue of developing effective tax administration mechanisms in order to ensure the effectiveness of cryptocurrency taxation and the growth of budget revenues remains unresolved and relevant today. Conclusions – the development of effective tax administration mechanisms is an important task to ensure the transparency and fairness of cryptocurrency taxation. This may include the development of clear taxation rules, the creation of monitoring and reporting systems to track cryptocurrency transactions, as well as cooperation with international partners to address transitional aspects and harmonize tax policies. Keywords: cryptocurrency, taxation, financial market, cryptocurrency market, income tax, capital gains tax, mechanisms of tax administration.
This study examines the impact of using distributed ledger technology. The use of this technology is characterized as an opportunity to maximize economic efficiency. This determines the use of blockchain technology in various fields. The conclusion is made about the expediency of using this technology in financial systems, which will have a positive impact on the perception of the services provided by the consumer and on reducing the operating costs of commercial organizations.
The modernization of technological systems has transformed the financial transactions industry and provided the opportunity to create cryptocurrencies. This article examines the essence of cryptocurrency, its specifics and characteristics, and identifies the positive and negative qualities of this category of means of payment. The purpose of the study is a comprehensive analysis of the directions of development of the cryptocurrency market. The relevance of the presented work is ensured by the rapidly increasing interest of investors in decentralized finance, their popularization, the growth of capitalization and the introduction of regulatory regulation of the cryptocurrency market by government agencies from various countries of the world.
This article considers the peculiarities of risk management in operations with cryptocurrencies, the necessity of risk management in operations with cryptocurrencies was substantiated. Cryptocurrency transactions have a high level of risk due to price volatility, the possibility of fraud and a lack of regulation. Therefore, institutions involved in cryptocurrency transactions should take measures to manage risk. Cryptocurrencies have a high degree of price volatility and are susceptible to fraud, so credit institutions involved in cryptocurrency transactions must take measures to manage risk. This includes conducting thorough customer due diligence, using data from various sources to verify the customer's legitimacy and financial stability, strictly following rules and procedures when conducting cryptocurrency transactions, and adhering to laws and regulations. Risk management is essential to protect clients from potential losses and problems. The main purpose of this study is to examine the peculiarities of risk management in operations with cryptocurrencies. The results of the study can be used by various subjects in transactions with cryptocurrencies.
Ministry of Natural Resources and Environment of the Russian Federation, David A. Sabanov
The purpose of the article is to consider the Russian cryptocurrency market from the point of view of its formation, development problems, as well as the prospects that the use of cryptocurrencies brings. The article notes that the development of the cryptocurrency market in Russia is a promising area of digital transformation of the financial market, which requires a careful approach to regulation, taking into account the experience of the best world practices. Effective regulation can help attract investment, increase financial inclusion and stimulate economic growth, which is extremely important in the face of sanctions pressure. The article determines that the process of regulating cryptocurrency in Russia can be divided into three main stages: denial, attempts to understand the new market, and gradual acceptance. Despite the fact that the circulation of cryptocurrencies in Russia has now become an objective reality, several aspects can be identified that pose the greatest threat in the context of the risk of cryptocurrency as an analogue of a means of payment in the shadow economy: anonymity; drug trafficking; laundering of money; non-payment of taxes; growth of corruption; cybercrime. Despite all the threats of the shadow economy, there are also a number of advantages inherent in the seemingly dubious market mechanism. Cryptocurrency, as an innovation in an already old order, can not only puzzle the authorities with solving major problems, but also create unexpected opportunities for developing personnel within the country and increasing sources of possible income for its citizens. All of these aspects must be taken into account in the process of developing regulations governing the cryptocurrency market in Russia, and also taking into account the fact that the cryptocurrency industry is actively developing throughout the world, “pulling” Russia into the field of cryptocurrency financial contacts. The article concludes that the current legislation should not be aimed at prohibiting cryptocurrencies, since this step will complicate control over their circulation.
The presented research is devoted to the history of the emergence of cryptocurrencies as a decentralized digital currency, their development and evolution. During its course, the peculiarities of the functioning of the financial system were revealed, which periodically caused financial crises and, as a result, marked the beginning of the creation of cryptocurrencies. The possibilities of making the cryptocurrency market stable using new tools have been explored. An analysis of changes in the financial system and the reasons for the emergence of cryptocurrencies allowed us to say that they were created in order to abolish the state's monopoly on money, as well as to form a system of currency competition, which is likely to lead to a new competitive and market-oriented monetary system. The conducted research showed the most important directions for the development of the cryptocurrency market, taking into account the ideas for creating decentralized funds that would form the basis of a new monetary system oriented towards the consumer and his preferences, and also allowed us to identify one of the most important subclasses of cryptocurrencies – stablecoins, which provide stability and security to their users, which makes their use more extensive.
The article uses the ARDL model to study the impact of the VIX index and the indices of economic and market uncertainty based on data from the social network X (formerly Twitter, blocked in the Russian Federation) on the volatility of Bitcoin. To estimate the unobservable cryptocurrency volatility, the author uses a nonparametric estimator derived from 5-minute data on Bitcoin closing prices, considering adjustments if there are gaps within the day. The paper considers the data for the period from 02.01.2018 to 30.12.2022, divided into two half-periods: pre-COVID-19 period (from 02.01.2018 to 28.02.2020) and post-COVID-19 period (from 01.03.2020 to 31.12.2022). According to the results obtained by estimating the ARDL model at different half-periods, in the long term, there is a significant negative VIX index impact on the realized volatility of Bitcoin. This paper observed a short-term (instantaneous) significant positive effect on the realized volatility of Bitcoin for the index of market uncertainty TMU_ENG in the pre-COVID-19 period. The identified significant effects make it possible to use the VIX and TMU_ENG indices to improve the forecast quality in models for the volatility of the Bitcoin cryptocurrency.
The advent of distributed ledger (DLT) technology, also known as blockchain technology and smart contracts, has been a significant factor in the growth of the digital financial assets (DFA) market in the Russian Federation. Despite the market being in its infancy and constrained by Russian legislation, the DFA market is undergoing a period of rapid growth. The author’s thesis is that the development of the DFA market is a reflection of the development of the digital asset market in the world. The author classifies and compares digital assets globally and within the Russian Federation in order to provide a more comprehensive analysis of the market. In addition, the author identifies the trends of digital assets globally by empirical analysis and proposes the reuse of the most successful token classes in accordance with Russian legislation for companies based in the Russian Federation.
The conceptual foundations of artificial intelligence and blockchain technology are considered. Methodologically, the work is based on the use of the analysis method to identify the limitations and prospects of the synergistic development of blockchain technologies and artificial intelligence in the conditions of the digital transformation of the economy; an empirical method for collecting and processing information about the features and trends in the development of the researched technologies; graphical method for visualizing the structural characteristics of an artificial neural network and the dynamics of the growth of computing power of the blockchain network. The key historical obstacles to the development of artificial intelligence technology are analyzed, which include limitations of computing power, information limitations, and methodological problems. It was found that overcoming the problem of limiting computing power in connection with similar requirements for the hardware base contributed to the synergistic interaction of blockchain technology and artificial intelligence. It is shown that a promising aspect of the synergy of artificial intelligence and blockchain technologies in the context of the use of computing power is related to the idea of using the computing power of miners to solve problems that have an independent value, in particular, the training of artificial neural networks. The key trends of the digital transformation of the economy, for which the key determinant is the synergy of blockchain and artificial intelligence, are the Internet of Things, the sharing economy, as well as inclusion and sustainable development. The synergistic effect of artificial intelligence and blockchain technology in the field of the IoT is that artificial intelligence makes it possible to bring the degree of "intelligence" of devices to a qualitatively new level, endowing them with the ability to make autonomous decisions and adaptive behavior. And blockchain technology is able to neutralize a significant part of the threats in the field of IoT, in particular, those associated with increasing autonomy of smart devices. The role of artificial intelligence in the development of the sharing economy is to optimize the recommendations of digital platforms regarding the exchange of resources or access to them, which leads to an increase in the effectiveness of the decisions making, an increase in consumer satisfaction, and has a positive effect on the operational results of the platforms themselves. Blockchain technologies, which are actively used by digital platforms of the sharing economy, increase the safety and reliability of the functioning of these platforms. The synergy between blockchain and artificial intelligence is important given the role they play in enabling inclusion and sustainable development. Their importance in ensuring inclusion is due to the fact that they facilitate the involvement of a wider range of stakeholders in the decision-making process and the redistribution of value through decentralized organizations (DAOs). This ensures the formation of an effective business model, which promotes the activation of the role of small and medium-sized enterprises and the emergence of an effective alternative to the trend of global capital concentration and the dominance of transnational corporations.
Currently, the benefits of decentralization through blockchain technology in the financial sector are actively discussed, but rarely quantified. This article attempts to examine the potential benefits and limitations of blockchain technology in improving governance and performance in digital financial ecosystems. The possibilities of using blockchain technology from traditional financial structures to the creation of new business models operating on blockchain networks and using smart contracts are shown. The impact of decentralization in the management of decentralized autonomous organizations (DAOs) on the financial performance of companies in the field of decentralized finance (DeFi) was assessed. In the process of research, we use the Gini coefficient as an indicator of inequality among token holders. This metric is analyzed in the context of return on investment (ROI) for DeFi companies. The method of linear regression analysis and the rule of interpretation of natural logarithms in regression were used for calculations. This analysis revealed a significant relationship and positive impact of decentralization on the functioning and profitability of organizations in the DeFi field. The resulting relationship indicates that with increasing decentralization in management, the return on invested capital increases. To improve investment attractiveness and long-term stability, DeFi companies should consider fairer ways to allocate tokens so that decentralized governance models based on blockchain and DAO become more profitable. The results and conclusions obtained from the study are based on academic research articles, open data, industry reports and company reports in the DeFi industry.
This article examines the current state of financial monitoring as a tool for combating and preventing money laundering and corruption. The use of blockchain technology is becoming increasingly prevalent in the field of financial monitoring for legal compliance. It offers a range of benefits, including improved accuracy, transparency, and security in tracking financial transactions. However, its adoption also poses several challenges, such as data privacy concerns, regulatory compliance, and the need for skilled personnel to operate and maintain these systems. This article explores the opportunities and challenges of leveraging blockchain technology to enhance legal compliance and financial monitoring. It also examines its key features and potential applications in financial monitoring. With the increasing adoption of this technology, the financial monitoring landscape is set to transform in the coming years, paving the way for a more efficient and effective way to combat and prevent money laundering and corruption.
Introduction. The expansion of the boundaries of cryptocurrencies in the context of economic uncertainty arising from the impact of conventional military and political conflicts and the significant replacement of fiat currencies and monetary money with cryptocurrency coins in the context of instability caused by war and sanctions in many countries and sectors of the economy due to the short historical period of cryptocurrency coins as a new type of electronic money have not been sufficiently studied. Methods. The methodological basis of the scientific research was formed by general and special research methods. The following research methods were used during the writing of the article: direct observation was carried out - the collection of information on the total market capitalization of crypto currencies and the amount of gross GDP of the People's Republic of China and the United States of America during 2013-2022, the number of owners of crypto currencies in some countries and their place in the Global Index adoption of crypto currencies in 2022; information processing methods are applied to confirm hypotheses; methods of analysis and synthesis; grouping and comparison; data visualization method. Results. The article considers global economic and military-political crises, which often lead to an increase in interest in cryptocurrencies as a «safe haven» for capital in the context of instability of national currencies and financial systems. The attractiveness of cryptocurrencies as an alternative investment instrument is established. Significant fluctuations in the prices of cryptocurrencies during economic crises are identified, which highlights the risks of using them as a means of preserving capital. The relationship between global economic and military-political crises and the dynamics of the cryptocurrency market is analysed, with an emphasis on the latest trends. The article examines how changes in regulatory policy in response to military and political crises affect cryptocurrency markets, offering a new perspective on the interaction between state regulation and decentralised financial systems. Discussion. The results of the study help investors and traders better understand the risks and opportunities associated with investing in crypto currencies in the context of global economic and military-political crises. The use of the developed forecasting methodology can contribute to more effective portfolio management, allowing to minimize risks and optimize the yield potential. Analyzing the interaction between the crypto currency market and global crises can be useful for regulators seeking to understand potential risks to financial stability and develop appropriate regulatory and policy solutions to manage these risks. Identifying specific patterns of market and investor behavior during crises provides valuable information for developing new products or improving existing ones in order to increase their attractiveness and security for users. The study offers new insights into the impact of macroeconomic and geopolitical factors on emerging financial assets, enriching the theoretical framework in the field of crisis economics and digital finance. Keywords: crypto currencies, global crises, economic instability, military-political conflicts, market volatility, investor behavior, geopolitical influence, regulatory policy, risk management
The purpose of the article is to conduct a study and determine the importance and benefits of using artificial intelligence (AI) tools for certain areas of the cryptocurrency market, in particular, detecting and preventing fraud in the cryptocurrency market, as well as the possibilities of using AI chatbots in trading and in the formation of investment portfolios. The article covers the analysis of the growth of digital currencies and the increasing number of hacker attacks, defines the role of AI in ensuring security, considers methods of fraud detection and prevention, and analyses development prospects. AI plays a crucial role in identifying suspicious transactions and preventing fraud. The study aims to investigate the benefits and potential risks of AI bots. AI's integration has transformed the market, enabling more informed decision-making, improved investment strategies, and higher returns. The article emphasizes the need for ongoing research into the evolving landscape of AI in cryptocurrency, discussing challenges, and the potential to finance sphere. The integration of AI in fraud detection has proven advantageous, enabling real-time data analysis and pattern recognition, enhancing security for investors. The article also addresses concerns such as algorithmic bias and the displacement of traders and using AI chat bots. While acknowledging the risks, it highlights the positive impact of AI on efficiency, reliability, and security in the cryptocurrency marketThe article presents an algorithmisation of the possibilities and procedures for engaging artificial intelligence in the fight against fraud, as well as recommendations for market participants and regulators. The presented results highlight the existing innovative potential of AI to improve the security and efficiency of the functioning of participants in the cryptocurrency market. Overall, the article suggests that AI's transformative influence in the cryptocurrency market is a game changer, shaping the industry's future and presenting opportunities for growth and innovation.
Open access
Business and Economic Development
Economic, Social, and Public Health Issues in Russia and Globally
The article is devoted to regular analysis of the advantages and disadvantages of various investment tools, namely investing in classic securities of the world stock market or in cryptocurrencies on different platforms. Note that there is very little research on the chosen topic in the Ukrainian scientific environment, and the need for them is growing every day, since practical actions must be based on a theoretical basis. Technological progress is constantly accelerating, currently most of the world's money is concentrated in electronic accounts and wallets. The purpose of scientific work is to analyze the risks and opportunities caused by the chosen direction of investment. The issue of centralization of capital investments on stock markets and cryptocurrency exchanges is considered. The history of the creation of centralized stock markets and decentralized crypto-platforms is traced. The article analyzes the dynamics of growth of the total amount of shares on the New York Stock Exchange and the dynamics of growth and decline of the price of one bitcoin in recent years. The article also analyzes the changes in the Ukrainian stock exchange over the past three years and explains how the situation has developed in the world and separately in the country affects investment and the state of the main joint-stock companies of Ukraine. The actions that led to the stabilization of the stock exchange after the full-scale invasion of Russia and COVID-19 are considered. The study compared two major currency exchanges: the US New York Stock Exchange and the Binance cryptocurrency exchange. It is also indicated how the world's largest stock and cryptocurrency markets reacted to the state of war in Ukraine and ways to help fight against the aggressor country. The largest fraudulent cyber-thefts on the world's cryptocurrency exchanges are analyzed and the amounts of lost funds in millions of US dollars and in the same crypto-coins that were stolen are indicated. Unlike cryptocurrency exchanges, the article describes that stock exchanges have not been robbed of millions of dollars. A SWOT analysis of the advantages, disadvantages, threats and opportunities of investing in instruments of classic stock exchanges and crypto-platforms was carried out. Comparing all the above-mentioned aspects, conclusions were drawn regarding the reliability of the respective exchange and the investment of monetary units of the subjects in the appropriate direction.