Legal regulation of virtual assets: challenges of legalization and institutional implementation in Ukraine
Year: 2025
Type: article
Abstract: The article is devoted to a detailed analysis of the legal aspects of regulating virtual assets in Ukraine, particularly their legal status, integration into the financial system, and impact on the country’s economic stability. The main focus is on the legal regulation of digital assets, such as their monitoring, taxation, legal control mechanisms, and ensuring transaction transparency. Special attention is paid to compliance with international regulatory standards and studying the experience of leading countries, including the US and the EU, for adapting best practices to Ukraine’s legal framework. The article examines key risks associated with the use of virtual assets, including tax evasion, money laundering, financing illegal activities, and shortcomings in the legal infrastructure for protecting investors’ rights. Significant attention is given to the role of government agencies in ensuring effective control over digital asset transactions and their transparency. The article proposes measures to improve the legal framework governing the circulation of virtual assets and ways to mitigate potential risks to the national economy. A separate section is devoted to analyzing key issues in cryptocurrency regulation in Ukraine, such as the imperfection of taxation mechanisms, the low level of financial literacy among the population, the lack of effective legal tools, and ambiguity in the application of existing legislative norms. The provisions of the Law of Ukraine “On Virtual Assets” are explored, highlighting its potential for developing a transparent cryptocurrency market and stimulating the digital economy. The article includes an overview of international trends in digital asset regulation and analyzes the prospects for Ukraine’s integration into the global financial space. The necessity of harmonizing national legislation with international standards to ensure competitiveness and protect the interests of Ukrainian investors is emphasized. The prospects for introducing innovative financial technologies, particularly blockchain systems, into legal and economic relations are also discussed. The material will be useful for legislators, government agencies, lawyers specializing in financial law, entrepreneurs interested in using virtual assets, and researchers studying the digitalization of financial relations and the impact of modern technologies on economic development.
Author: D. S. Shemet
Institution: Yaroslav Mudryi National Law University
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408943792