LEGAL REGULATION OF THE CIRCULATION OF VIRTUAL (DIGITAL) ASSETS IN UKRAINE

Abstract

The article examines the formation of legal regulation of virtual assets in Ukraine, taking into account the developments in foreign legislation. Some types of assets are defined, such as virtual goods, tokens, domain names, and especially cryptocurrencies. The author emphasizes that it is the latter type of asset that is most widespread. The article examines both positive and negative aspects associated with the introduction of virtual assets. In particular, the positive aspects include the existence of issuance freedom and decentralization. The absence of intermediaries in transactions leads to lower costs. It is accessible to a wide range of users and has a fairly high degree of security. The negative aspects are manifested in the threat of misuse of virtual assets for the purpose of terrorist financing, subversion, trade in prohibited goods, and money laundering. High volatility of assets and hacker attacks pose a threat of loss of invested funds. A liquidity crisis on the exchange where the assets are held can also lead to a loss of funds. It is determined that the regulatory framework for the circulation of virtual assets in Ukraine is at the stage of initial formation and requires further improvement of national legislation by specifying the conceptual and categorical apparatus and defining the characteristics of each type of asset. Clear delineation and consolidation of the powers of the authorities that will exercise control and supervision in this area. An important area of legal regulation is also the need to develop a clear methodology for accounting for transactions with digital assets and taxation. It is noted that the introduction of virtual assets will affect the conduct of business activities by business entities, namely, the development of digital technologies leads to the formation of a new type of economic relations which affects the economic competition of market participants.