Financial and Legal Regulation of Blockchane Technology: Status and Prospects of Cryptovolute Use

Abstract

Abstract. The essence of cryptocurrencies is considered and the definition of their legal status is offered. The experience of some jurisdictions regarding the opportunities and threats of using and regulating cryptocurrencies has been studied. The authors analyzed the cryptocurrency market. The factors that led to the widespread use of cryptocurrency, which include financial instability, significant currency fluctuations, limiting capital flows and inflation of the currency in the country. The problem of information protection using blockchain technology, which is solved by a combination of block design and cryptographic protection, is considered. The capitalization of TOP cryptocurrencies for the last three years is analyzed, among which the leading ones are Bitcoin (VTS), Ethereum (ETH), Tether (USDT) and others. Identified issues that need to be addressed in the field of finance and legal regulation. In the process of analyzing the experience of regulating cryptocurrency, we have found similar and distinctive features in some jurisdictions. First, each country, in view of the great potential of the blockchain technology, is trying in one way or another to create a favorable climate for its development. Secondly, the use of cryptocurrency goods is rapidly developing, and their impact on economic processes, both at the international and national levels is increasing, while states are faced with the problem of adapting their tax legislation to the current challenges of the digital economy, since the definition of the status of cryptocurrency does not directly lead to lack of funds to the state budget from operations with these assets. Thirdly, today there are more than 2,000 cryptocurrencies is traded through various trading platforms — stock exchanges and can be used to launder proceeds from crime. Thus, it is necessary to develop common standards for the regulation of cryptocurrency and the requirements for such crypto exchange counterparts, through the licensing of operations with cryptocurrencies. At the same time, the important question is what government bodies should exercise such control. Keywords: technology blockchain, cryptocurrency, virtual currency, legal regulation of cryptocurrencies, state functions, cryptocurrencies taxation. JEL classіfіcatіon F01, F20, K33, K34 Formulas: 0; fig.: 0; tabl.: 1; bibl.: 23.

Valuable aspects of digital boons as objects of civil rights of a person

“…Another significant aspect affecting the value of virtual assets is the level of transaction security. Blockchain technology is quite resistant to external influences [25] in view of the fact that the aforementioned provides almost complete protection against unauthorized or illegal interference in transactions, whereas any endevours of the stated interference can be detected and traced.…”

Аналіз Розвитку Міжнародного Ринку Криптовалют: Стан, Тренди Та Перспективи

“…Водночас слід зазначити, що різновидів криптовалют багато, більшість із них відносно невеликі та не відіграють поки що провідної ролі в цій частині фінансового ринку. Так, за рейтингом ринкової капіталізації криптовалют, найчастіше згадують Bitcoin (BTC), Ethereum (ETH), Tether (USDT), XRP та інші[26]. У той же час менш популярні та відомі криптовалюти, такі, як, наприклад, Dogecoin (DOGE), також суттєво зросли в ціні 2021 року та мають подальшу тенденцію до зростання у 2022 році[27].Поряд із висхідними тенденціями розвитку міжнародного ринку криптовалют в умовах диджиталізації існують і певні фактори, які по-різному впливають на його стан.По-перше, зародження такої особливості, як утрата довіри до цифрових валют із боку суб'єктів ринку.…”