INSTITUTIONAL ALIGNMENT AS A MECHANISM FOR UKRAINE'S TRANSITION TO AN INNOVATIVE MODEL OF THE CRYPTOCURRENCY MARKET
Abstract
The article substantiates a conceptual model for Ukraine's transition from a compensatory to an innovative model of cryptocurrency market integration through the mechanism of institutional alignment. The relevance of the study stems from a paradoxical configuration of the Ukrainian cryptocurrency market: stable presence in the top ten of the global crypto adoption ranking combined with a partially developed institutional infrastructure characteristic of developing economies. The methodology integrates institutional change theory by D. North and disruptive innovation theory by C. Christensen, supplemented by comparative analysis of national regulatory regimes and a case-based examination of two Ukrainian cryptocurrency companies, WhiteBIT and Kuna. The results identify a fundamental asymmetry between actual market activity and the state's institutional capacity to encompass it. The phenomenon of jurisdictional drift is identified, manifested in the voluntary relocation of Ukrainian blockchain teams to external legal regimes due to regulatory uncertainty in the national jurisdiction. Comparative analysis of the trajectories of WhiteBIT, which proactively built a presence in EU member states under the MiCA framework, and Kuna, which ceased operations in 2025 after its access was blocked by Ukrainian authorities, illustrates the cost of institutional inaction. A two-stage transformation strategy is proposed, comprising a tactical goal of positioning Ukraine as a regional hub for virtual asset circulation in the Eastern European space of the European Union and a strategic perspective of deploying a hybrid digital money model that integrates a central bank digital currency, private stablecoins, and decentralised financial services in a unified regulated environment. Operational implementation is structured in three sequential phases: stabilisation, integration, and architectural, with a cumulative time horizon of ten to fifteen years. The practical value of the proposed approach lies in its applicability as an analytical foundation for the national cryptocurrency market regulation strategy and for assessing the feasibility and sequencing of specific regulatory decisions
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