Criminal liability for illegal possession of cryptocurrency in Ukraine

Abstract

This study investigated the criminal liability for illegal acquisition of cryptocurrency in Ukraine, which is relevant in connection with the considerable spread of cryptocurrencies and cases of their illegal acquisition, as a result of which significant material damage is caused to the victims. Specifically, this is explained by the collapse of cryptocurrency exchanges and hacker attacks on cryptocurrency wallets. The purpose of this study was to investigate what criminal liability is prescribed for illegal possession of cryptocurrency in Ukraine. The study employed a dialectical approach and methods of system and technical and legal analysis, as well as a formal and logical method. Approaches to understanding the term “cryptocurrency” were defined, and its types were specified. The features of the functioning of blockchain technology were covered. This paper analysed the legal regulation of virtual assets in Ukraine, their relationship with cryptocurrency. It is noted that at its core, cryptocurrency is not a virtual asset and that it is advisable to consider it an electronic asset based on the blockchain – a decentralized public register of all cryptocurrency transactions conducted on the network. Shortcomings in the legal regulation of cryptocurrencies in Ukraine were highlighted, specifically, it was noted that the signs of virtual assets do not fully coincide with the signs of cryptocurrencies. The most common ways of illegal possession of cryptocurrency were specified, and problematic issues of bringing individuals who have come into illegal possession of cryptocurrency to criminal responsibility were outlined. This paper substantiated the impossibility of bringing individuals who have come into illegal possession of cryptocurrency to criminal responsibility in Ukraine, considering the principle of legal certainty and avoiding analogy in criminal law. The necessity of criminalizing illegal possession of cryptocurrency was proved. Practical recommendations on making appropriate amendments to the Criminal Code of Ukraine were formulated. The theoretical value of this study lies in the formation of an approach to the need to criminalize the illegal possession of cryptocurrencies, and its results can be used in law-making activities.

Investigating the Inheritance of Digital Currency: Legal Challenges and Criminological Perspectives

“…Fanusie and T. Robinson (2018) studied and described schemes for the theft of virtual currency, which was not studied in this work. Based on the analysed studies of the abovementioned authors, the work identified measures to prevent the use of any type of digital currency for illegal financial transactions (Kozii, 2023). The subsequent transfer of the alternative currency to certain heirs chosen in one of two possible ways will be able to fully happen.…”