The legislative regulation of the circulation of cryptocurrency in Ukraine and the prospects for development

Abstract

The rapid development of technological innovation is accompanied by changes in the transfer of settlements in electronic format, which leads to the emergence of new payment instruments. With the development of information technology there are many new and diverse forms of money, including electronic money and cryptocurrency. In connection with the rapid introduction of innovations in the sphere of payment and settlement systems, in particular, the circulation of cryptocurrency, a number of issues arise concerning regulatory regulation and it practical using in the national payment system of Ukraine. In the course of the study the foreign experience of regulating the circulation of cryptocurrency is considered, in particular, the main positions of financial institutions are outlined. The position of the National Bank of Ukraine regarding the circulation of cryptocurrency in Ukraine and the main proposed changes in the legislative and normative regulation of the cryptocurrency treatment provided for the draft laws are highlighted. The problems of taxation of mining related to the using of virtual cryptocurrency for illegal transactions, drug trafficking in arms and other prohibited goods, the loss of state monopoly on the issue of money, the reduction of the benchmark of central banks, the decrease in demand for national currency, which leads to its depreciation of the rate of turnover, which in turn complicates the process of determining the speed of money and the conduct of monetary regulation, the impossibility of an effective monetary policy, reducing the level of influence and elimination of financial intermediaries, etc.Legalization of cryptocurrency will help fill the revenue side of the state budget. And the issue of legal regu lation of cryptocurrency on the territory of Ukraine is relevant and necessary, as international experience shows, cryptocurrency is becoming increasingly popular in international practice, and it is virtually impossible and economically impractical to stop its development. The emergence of cryptocurrency with a high degree of financial novelty leads to revolutionary changes in monetary relations, and puts us at a new stage in the evolution of money. It causes new challenges on the monetary and payment systems and prompts governments to adapt their financial institutions accordingly. The main directions of improvement of the regulation of the cryptocurrency turnover are outlined on the basis of comparison of the current legislation in Ukraine with the economically developed countries of the European Union and the world.