REGULATION OF CRYPTOCURRENCIES IN UKRAINE: IMPACT ON THE ECONOMY AND DEVELOPMENT PROSPECTS

Abstract

The article examines the phenomenon of cryptocurrencies as an innovative phenomenon in the world of finance and its impact on the Ukrainian economy. The purpose of this article is to study the phenomenon of cryptocurrencies, analyze their advantages and disadvantages, assess the potential impact on the financial system and economy, as well as determine the prospects for the development of the cryptocurrency market. The author analyzes the advantages and disadvantages of cryptocurrencies, their potential impact on the financial system and economy, as well as the prospects for the development of the cryptocurrency market. The key characteristics of cryptocurrencies, such as decentralization, security, anonymity and accessibility, are considered. The risks associated with cryptocurrencies are highlighted, including high volatility, lack of regulation and use in illegal activities. Particular attention is paid to the analysis of the regulatory environment of cryptocurrencies in Ukraine, in particular, the adoption of the Law “On Virtual Assets” and its potential impact on market development. The possible consequences of cryptocurrency regulation for the Ukrainian economy, including attracting foreign investment, stimulating innovation and de-shadowing the economy, are investigated. The challenges associated with the introduction of regulation, such as the need to strike a balance between consumer protection and stimulation of innovation, as well as the development of the necessary infrastructure, are considered. Based on statistical data, the author analyzes the dynamics of trade volumes in the cryptocurrency market of Ukraine and the world, and presents a comparative analysis of regulatory approaches of different countries. The potential consequences of the widespread introduction of cryptocurrencies for monetary policy and financial stability are outlined. The factors that will determine the further development of the cryptocurrency market in Ukraine are identified, and the need for further research in this area to develop an effective public policy is emphasized.