Current Status and Regulation of the Digital Money Market in Ukraine

Abstract

Nowadays, digital money, which in most cases is related to cryptocurrencies in one way or another, is gaining importance. The capitalisation of the cryptocurrency market is generally increasing over time; new coins are being created; and certain countries (including China, the European Union member states and Japan) are already working on projects to create their digital money. Given these trends, it is necessary to consider how the legal and regulatory framework for the electronic money market in Ukraine is structured and what is the current state of the market in the country. Thus, the research aims to analyse the current Ukrainian legislation that should regulate the electronic money market and to consider the current trends that prevail in the Ukrainian cryptocurrency market. The main method used in this research was the analysis method to draw appropriate conclusions about the effectiveness of the legal regulation of cryptocurrencies in Ukraine and the current state of their development in general, it was necessary to conduct a comprehensive analysis of the development of this phenomenon in many countries, including the United States, Germany, the United Kingdom, China, Japan. The study showed that the cryptocurrency market continues to grow rapidly in Ukraine. Cryptocurrencies are very popular among small investors, while Ukrainian cryptocurrency projects have not yet gained significant recognition in the world. The country's legal and regulatory framework for this sector appeared only in 2020, but it is too early to talk about its effectiveness; it is worth noting that its introduction is the right step for the further development of this sector. The data on the current state of the cryptocurrency market in Ukraine may be useful for investors to formulate their investment strategies, while an analysis of the legal and regulatory framework in this area in Ukraine and other countries will help policymakers to better shape future policy in this area.