CRYPTOASSET MARKET IN UKRAINE: CURRENT TRENDS

Abstract

A characteristic feature of the modern economy is the rapid development of its virtual sphere, the increasing role and penetration of digital technologies into the real sector. As digital currencies become more widespread and acceptable, more entities will consider them as an object for investment or use them as a means of payment. Despite the fact that crypto assets operate in a dimension that is not physical and can only exist in digital format, due to certain features, they can become a financial instrument that modern society desperately needs, opening up new opportunities for businesses and increasing economic activity. The development of the economy and digital technologies has led to the emergence of a new group of objects that can be generalized under the term "virtual assets." The common features of this group are the absence of a physical form, creation through innovative digital (digital, electronic, etc.) technologies, and the independent monetary value of each object that can satisfy the needs of market participants. Within virtual assets, a separate object stands out: crypto assets, which from a technical point of view, are a special digital code or cipher that is the result of special calculations according to a given algorithm in the blockchain system. In Ukraine, the first steps have been taken towards legalizing and improving the regulation of the crypto asset market with the adoption of the Law "On Virtual Assets". It is expected that the law will solve such problems as the absence of legal regulation, taxation mechanisms, guarantees of protection of the property rights of industry participants, as well as control over the circulation of virtual assets and effective mechanisms for attracting foreign investments. Currently, crypto assets cannot be officially used as currency, as the currency and payment instrument of another country, as a currency value, as electronic money, or as securities. However, despite the fact that trading companies cannot legally accept crypto assets as payment, many of them do so as a form of payment, reflecting the potential of crypto assets to become an accepted means of payment in the future.