LEGAL ASPECTS AND FUTURE REGULATION OF ELECTRONIC FINANCIAL INSTRUMENTS IN THE PROCESS OF CAPITAL RAISING

Abstract

The article discusses the legal aspects and future regulatory prospects of electronic financial instruments in the context of capital raising. It analyzes contemporary approaches to the regulatory support of financial innovations, particularly blockchain technologies, cryptocurrencies, and other digital assets, as well as their impact on traditional financial market mechanisms. The study emphasizes identifying legal challenges faced by state regulators and outlines possible ways to improve the legislative framework to harmonize the interests of market participants and ensure financial stability. The introduction highlights the need for enhanced legal frameworks to foster innovation while ensuring the security and transparency of financial transactions. The paper's methodology includes comparative analysis, normative legal analysis, and a systematic approach to understanding the interplay between legislative frameworks and financial technology development. The study utilizes various sources, including legal documents, judicial practice, scholarly literature on financial law, and analytical reports from international organizations and leading financial institutions. This comprehensive approach aims to obtain objective data on the current state of electronic financial instrument regulation and develop recommendations for further legislative improvements. By citing works from both domestic and international researchers, the authors demonstrate a keen awareness of blockchain technology's theoretical and practical aspects in the financial sector. The paper includes a detailed discussion of the technology's impact on modern financial processes, such as digitalizing financial operations, enhancing transaction transparency, and reducing operational costs. Ukraine's experience in implementing and regulating electronic financial instruments is examined, showcasing legislative steps taken to integrate digital technologies into the financial system. Pilot projects are highlighted, demonstrating practical applications of innovative financial solutions.