Legal regulation of the digital transformation of the national financial system in the context of european integration processes
Year: 2025
Type: article
Abstract: The article explores the legal foundations of the digital transformation of Ukraine’s national financial system in the context of European integration. It emphasizes that the modern financial system is undergoing profound qualitative changes under the influence of digital technologies such as blockchain, artificial intelligence, fintech solutions, digital identification, and open banking. The implementation of such innovations creates new legal challenges that require a systematic update of the regulatory framework and its adaptation to the standards of the European Union. The author analyzes key national acts that constitute the legal basis for the digitalization of the financial sector, including the Law of Ukraine «On Payment Services,» «On Electronic Identification and Electronic Trust Services,» as well as strategic planning documents such as the Financial Sector Development Strategy until 2025. Special attention is paid to European documents: Payment Services Directive 2 (PSD2), electronic IDentification, Authentication and trust Services (eIDAS), Markets in Crypto Assets (MiCA), and the Digital Operational Resilience Act (DORA), which determine the direction of reforms in digital regulation. The study finds that despite the existence of an initial legislative framework, digital financial regulation in Ukraine remains fragmented. Problematic areas include the legal status of virtual assets, tokenization, personal data protection, and cybersecurity. Insufficient interagency coordination and a lack of digital competencies among regulators are also noted. The article proposes a set of practical solutions aimed at improving legal regulation: aligning national legislation with the General Data Protection Regulation (GDPR), clarifying provisions on virtual assets, introducing regulatory sandboxes, enhancing cooperation with European financial institutions, and implementing educational programs in the field of the digital economy. The findings may be used to shape the legal framework for Ukraine’s digital integration into the European financial space.
Authors: L. M. Nevara, K. S. Zvierieva
Institution: State University of Trade and Economics
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4413200004