Legal genesis of virtual asset circulation in Ukraine and Worldwide: Risks and concerns

Abstract

The peculiarities of the creation and circulation of virtual assets in the context of their decentralised nature and limited legal regulation are of not only scientific but also practical interest to both states and other entities that have the ability and desire to use them in their daily lives. The formation of full-fledged global and national virtual asset markets is an extremely important step in the context of taking advantage of digitalisation, but the creation of such markets must be transparent, which cannot be ensured without proper legal regulation. The research aims to study the legal regulation and reveal the content of virtual assets as a phenomenon and an instrument from the standpoint of their functional characteristics and the risks that may arise in the course of their circulation, as well as the abuse in this area and the international experience of combating it. Comparative legal, analytical, formal logical and synthetic methods of scientific cognition were used in the study to analyse the legislation of the European Union and other countries and the practice of specialised regulatory authorities of the United Kingdom and the United States of America concerning their impact on the circulation of virtual assets. The author draws parallels with the attempts to conduct rule-making processes in Ukraine and synchronises them with the rule-making work at the international level to create a new conceptual and regulatory framework and attempt to regulate the status of virtual assets. Several proposals have been made, the implementation of which will create the preconditions for the development, approval, and implementation of proper legal regulation of the circulation of virtual assets in Ukraine. Their implementation will enable the interstate exchange of information to prevent abuses in the field of activity under study, in particular, money laundering. The results of the study can be used to formulate public policy and improve legislation in the field of virtual assets circulation