Yarovyi K. O., candidate of pedagogical sciences, associate professor, at the department of accounting and auditing, Donbass State Teachers Training University, Slavyansk, Ukraine

ORCID ID: 0000-0001-5516-9450
e-mail: yarovoy_k_a@ukr.net

Martynenko O. V., Senior Lecturer, Department of Accounting and Auditing, Donbass State Pedagogical University, Slovyansk, Ukraine

ORCID ID: 0000-0002-6953-0259
e-mail: Elenamartynenko1975@gmail.com

Shnurko A. M., Senior Lecturer, Department of Accounting and Auditing, Donbass State Pedagogical University, Slovyansk, Ukraine

ORCID ID: 0000-0002-4527-6831
e-mail: shnurko.a@ukr.net

The concept of cryptocurrency and the mechanism of its state regulation

Abstract. Introduction. Cryptocurrency is a completely new economic and legal phenomenon, different from traditional or electronic money. At the same time, it should be noted that there is no single definition in the world that would reveal its essence, economic and legal nature.

Purpose. Taking into account the opinion of other scientists, it is necessary to consider the concept of cryptocurrency, the functions performed by virtual assets, as well as to determine the legal status of cryptocurrency in different countries of the world and the chronology of events that regulate the legal status of cryptocurrency in Ukraine.

Results. Cryptocurrency provides a fast and reliable system of payments and money transfers, which is based on the latest technologies and is not under the control of regulatory state institutions. The article provides a brief overview of the term cryptocurrency as used by various sources. The most common cryptocurrency, created back in 2009, Bitcoin is also considered. Questions of its similarity to electronic money are raised. The advantages of cryptocurrency have been identified, some of which can be disadvantages at the same time. The analysis of the opinion of the scientific community allows us to distinguish the functions characteristic of virtual assets and the functions characteristic of fiat money. Positions of foreign central banks and other financial regulators regarding cryptocurrencies and cryptocurrency markets were also presented. The paper considered the chronology of events regulating the legal status of cryptocurrency in Ukraine. It is proposed to carry out further research on issues of cryptocurrency legitimization.

Conclusions. The mechanism of state regulation of cryptocurrency in Ukraine requires further refinement, starting with streamlining the terminological base and determining the directions of work with this type of currency.

Keywords: cryptocurrency; virtual assets; bitcoin; money; electronic money; money surrogate.

References:

1. Arkhirejsjka, N. V. & Kuchkova, O. V. (2019). The functioning mechanism of cryptocurrencies. Biznes Inform, 2, 407–413. Retrieved from : https://doi.org/10.32983/2222-4459-2019-2-407-413 [in Ukrainian].
2. Ghalushka, Je. O. & Pakon, O. D. (2017). The essence of cryptocurrencies and prospects for their development. Molodyj vchenyj, 4 (44), 634-638. Retrieved from : http://molodyvcheny.in.ua/files/journal/2017/4/147.pdf [in Ukrainian].
3. Ghonak, I. M. (2021). Theoretical rationale for defining cryptocurrency as money. Innovacijna ekonomika, 5-6, 123-130. Retrieved from : http://inneco.org/index.php/innecoua/article/view/830 [in Ukrainian].
4. Dvulit, Z. P., Peredalo, Kh., Tylipsjka, R. B., Terno, R. M. & Stybelj, R. I. (2019). Cryptocurrency : state and development trends. Ekonomika ta derzhava, 1, 10-14.  DOI: 10.32702/2306-6806.2019.1.10 [in Ukrainian].
5. Kaznachejeva, D. V. & Dorosh, A. O. (2020). Cryptocurrency: problems of legal regulation. Visnyk kryminologhichnoji asociaciji Ukrajiny : zb. nauk. pracj, 2 (23), 170 – 175. Retrieved from : http://dspace.univd.edu.ua/xmlui/handle/123456789/9575 [in Ukrainian].
6. Kovtun, V. V. & Ovsijenko, O. V. (2021). Cryptocurrency relations in Ukraine: economic and legal analysis. Ekonomika ta suspiljstvo, 31. Retrieved from : https://doi.org/10.32782/2524-0072/2021-31-50 [in Ukrainian].
7. Kornjejev, V. & Cheberjako, O. (2018). Cryptocurrencies : era and spheres of financial innovation. Visnyk Kyjivsjkogho nacionaljnogho universytetu imeni Tarasa Shevchenka, 1 (196), 40-46. Retrieved from : https://doi.org/10.17721/1728-2667.2018/196-1/6 [in Ukrainian].
8. Krasnozhon, S. V. & Pivddubnyj, V. A. (2018). Cryptocurrencies : current state and development prospects in Ukraine. Formuvannja rynkovykh vidnosyn v Ukrajini, 4 (203), 65-68. DOI: 10.5281/zenodo.1252299 [in Ukrainian].
9. Kucevol, M. A. & Shevchenko-Naumova, O. A. Concept and economic nature of cryptocurrency.  Retrieved from : https://ir.kneu.edu.ua/bitstream/handle/2010/16391/79-85.pdf?sequence=1&isAllowed=y [in Ukrainian].
10. Oghinok, S. V. & Janko, K. V. (2022). Stages of cryptocurrency market development. Ekonomika ta suspiljstvo, 35. Retrieved from: https://doi.org/10.32782/2524-0072/2022-35-18 [in Ukrainian].
11. Popova, Anzhela (2021). Market analysis and determination of status crypt in Ukraine. Ekonomika ta suspiljstvo, 33. Retrieved from : https://doi.org/10.32782/2524-0072/2021-33-56 [in Ukrainian].
12. Reznikova, T. O. & Pestun, A. P. (2019). Innovative international financial settlement systems – cryptocurrencies. Naukovyj visnyk Uzhghorodsjkogho nacionaljnogho universytetu, 24, chastyna 3, 67-72. Retrieved from : http://www.visnyk-econom.uzhnu.uz.ua/archive/24_3_2019ua/14.pdf [in Ukrainian].
13. Senyk, O. I. (2021). Performance of money functions by cryptocurrencies. Ekonomika ta suspiljstvo, 33. Retrieved from : https://doi.org/10.32782/2524-0072/2021-33-91 [in Ukrainian].