THE IMPACT OF CRYPTOCURRENCY REGULATION ON THE GLOBAL FINANCIAL MARKET: CHALLENGES AND OPPORTUNITIES FOR INVESTORS

Abstract

The article is devoted to the regulation of cryptocurrencies in the financial market. In the course of writing the article, the author has studied the impact of cryptocurrency regulation on the global financial market, as well as identified the challenges and opportunities that this type of asset creates for investors. It should be noted that one of the main problems of cryptocurrencies is the lack of a unified international position on the regulation of cryptocurrencies, as some countries use them as a means of payment, while others decide to ban them completely. In addition, most scholars consider cryptocurrencies to be a type of pyramid scheme and are skeptical about their role in the financial market, in particular because of the lack of generally accepted rules for its regulation. Based on the analysis of the global cryptocurrency market, the article shows that this type of asset is quite profitable, despite some skepticism from both scholars and investors. It is determined that, despite the price crashes, there has been a recovery, which is probably predictable, indicating its stability and benefits for investors, mainly in the long term. The author then examines the peculiarities of cryptocurrency regulation in different countries of the world and in Ukraine in particular, and determines that in a number of countries with relevant legal provisions, cryptocurrency companies successfully operate in compliance with the law and prevent money laundering. It is determined that in a number of countries where relevant legislative norms have been created, cryptocurrency companies successfully conduct their activities in compliance with legal norms and prevent money laundering. The author proves that financial fraud with money is the main reason why countries are concerned about legalizing this type of asset as a means of payment. The author shows that regulation of cryptocurrencies is an effective means of influencing investment decisions regarding the acquisition of this type of asset. In conclusion, it was noted that it is important to create the necessary conditions for the legislative regulation of cryptocurrencies, which will make it impossible to commit various financial frauds and money laundering, as well as create a favorable environment for the development of digital assets.