Liliia Zherdetska, Doctor of Economics, Professor, Head of the Department of Banking, Odesa National Economic University, Odesa, Ukraine

ORCID: 0000-0001-5398-868X
e-mail: lzherdetska@gmail.com

Yevhen Malidovskyi, PhD Student of the Department of Banking, Odesa National Economic University, Odesa, Ukraine

ORCID: 0009-0005-7611-5079
e-mail: emccpb@gmail.com

Regulatory Instruments for Ensuring Financial System Stability in the Context of the Spread of Crypto-assets and Digital Currencies

Abstract. Introduction. The study addresses the emerging risks to financial system stability caused by the rapid spread of crypto-assets and digital currencies. Traditional financial models are increasingly challenged by the volatility, liquidity risks, and systemic effects associated with these digital assets.

Purpose. The primary aim is to identify key risk factors linked to crypto-assets and assess the effectiveness of regulatory instruments, including microprudential, macroprudential, institutional, technological measures, and financial monitoring, in mitigating these risks.

Results. High volatility, liquidity shortages, systemic contagion, cyber threats, and ESG-related concerns highlight the need for comprehensive regulation. Key mechanisms include licensing of crypto service providers, stablecoin oversight, coordination among central banks, and the implementation of RegTech and SupTech technologies.

Conclusions. The study emphasizes the importance of international coordination and enhanced supervisory frameworks to ensure financial stability, transparency, and trust in the crypto-asset market.

Keywords: crypto-assets; digital currencies; financial stability; risks; regulatory instruments; microprudential and macroprudential measures; RegTech; SupTech.

References:

1. Hlushchenko, О., Shvayko, М., Khmelkov, А., Danylkina, О. (2023). Current trends in the cryptocurrency market in Ukraine. Investments: Practice and Experience, 24, 84. DOI: 10.32702/23066814.2023.24.84. 
2. Pylypenko, O.V., Khrystal, H.O. (2023). The impact of cryptocurrencies on the Ukrainian economy. Scientific Works of the Interregional Academy of Personnel Management. Economic Sciences, 08(3 (70)), 103-109. DOI: 10.32689/2523-4536/70-15. 
3. Honcharuk, V.L. (2025). The impact of cryptocurrencies on the financial system and possible consequences for financial and economic security. Central Ukrainian Bulletin of Law and Public Administration, 1(9). DOI: 10.32782/cuj-2025-1-4.
4. Hula, I., Kuziv, Y. (2025). Regulation of cryptocurrencies in the banking system of Ukraine. Bulletin of the National University “Lviv Polytechnic”. Series: Legal Sciences, 12(1), 30-37. DOI: https://doi.org/10.23939/law2025.45.030
5. Darchyk, H. (2025). Current state of cryptocurrency legal regulation in Ukraine: Foreign experience of cryptocurrency market regulation. Scientific Bulletin of Uzhhorod National University. Law Series, 87(2), 50. DOI: https://doi.org/10.24144/2307-3322.2025.87.2.50. 
6. Taran, O., Safarli, S. (2025). Cryptocurrency activity outside the regulatory framework. Scientific Notes of KROK University, 3(79), 135-142. DOI: 10.31732/2663-2209-2025-79-135-142. 
7. Nanavov, A., Blyzniuk, M. (2025). Implementation of European standards for stablecoin regulation in Ukraine. Bulletin of Kherson State University. Series: Economic Sciences, 55. DOI: https://doi.org/10.32999/ksu2307-8030/2025-55-6.
8. van der Linden, T., Shirazi, T. (2023). Markets in Crypto-Assets Regulation: Does It Provide Legal Certainty and Increase Adoption of Crypto-Assets. Financial Innovation, 9:22. DOI: https://doi.org/10.1186/s40854-022-00432-8.
9. Zetzsche, D.A., Buckley, R.P., Arner, D.W., van Ek, M.C.P.E. (2023). Remaining regulatory challenges in digital finance and crypto assets after MiCA. Study requested by the ECON Committee. Retrieved from: https://www.europarl.europa.eu/RegData/etudes/STUD/2023/740083/IPOL_STU(2023)740083_EN.pdf.
10. Donnelly, S., Ríos Camacho, E., Heidebrecht, S. (2024). Digital sovereignty as control: the regulation of digital finance in the European Union. Journal of European Public Policy, 2226–2249. DOI: https://doi.org/10.1080/13501763.2023.2295520.
11. Camassa, C. (2023). Legal NLP Meets MiCAR: Advancing the Analysis of Crypto White Papers. ArXiv, abs/2310.10333. DOI: https://doi.org/10.48550/arXiv.2310.10333.
12. Soana, G., de Arruda, T. (2024). Central Bank Digital Currencies and financial integrity: finding a new trade-off between privacy and traceability within a changing financial architecture. Journal of Banking Regulation, 25, 467–486. DOI: https://doi.org/10.1057/s41261-024-00241-2.
13. Rizwan, M.S., Ahmad, G., Qureshi, A. (2025). Central bank digital currency and systemic risk. Journal of International Financial Markets, Institutions and Money, 99, 1042-4431. DOI: https://doi.org/10.1016/j.intfin.2024.102104.
14. Bank for International Settlements. Basel Committee on Banking Supervision. Basel Framework (Market Risk). Retrieved from: https://www.bis.org/basel_framework/chapter/MAR.htm.
15. Barucci, E., Gurgone, A., Iori, G., Azzone, M. (2025). Central bank digital currency, flight to quality, and bank runs in an agent based model (arXiv:2510.21071). arXiv. DOI: https://doi.org/10.48550/arXiv.2510.21071.
16. Laimon, M., Almadadha, R., Goh, S. (2025). Energy Consumption of Crypto Mining: Consequences and Sustainable Solutions Using Systems Thinking and System Dynamics Analysis. Sustainability, 17, 3522. DOI: https://doi.org/10.3390/su17083522.
17. European Banking Authority. (2021). EBA analysis of RegTech in the EU financial sector. European Banking Authority. Retrieved from: https://eba.europa.eu/sites/default/files/document_library/Publications/Reports/2021/1015484/EBA%20analysis%20of%20RegTech%20in%20the%20EU%20financial%20sector.pdf.