STATE REGULATION OF CRYPTOCURRENCY MARKET: FOREIGN EXPERIENCE

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STATE REGULATION OF CRYPTOCURRENCY MARKET: FOREIGN EXPERIENCE

Journal Title: Зовнішня торгівля: економіка, фінанси, право - Year 2018, Vol 1, Issue 96

Abstract

Background. Strengthening the role of cryptocurrencies as a means of accumulation and means of payment affects the emergence of various risks associated with their mining and transactions with them. As a result, during the last years, the formation of a system of cryptocurrency regulation takes place to prevent threats and minimize the possible negative consequences for the private and public sectors. It determines the relevance of the selected topic. The aim of the article is to study foreign experience in regulating cryptocurrency operations to determine the system of values in the formation of an appropriate domestic regulatory system. Materials and methods. The works of domestic and foreign scholars have become the theoretical and methodological basis of the article. The research was conducted using the methods of theoretical generalization, comparative analysis, analysis and synthesis, which allowed to substantiate the directions of the formation of the regulation system activity in the field of cryptocurrencies in Ukraine. Results. The functioning of the virtual currency regulation system should be based on the principles of transparency, which implies the completeness and accessibility of information for all interested parties; stability, which provides for prevention of crisis situations in the market; consumer rights protection; complementarity, aimed at complementarity of regulatory instruments; monitoring, which provides for the constant control over operations with virtual currencies. At the same time, administrative and economic methods of regulating crypto-currency should be combined. Conclusion. Cryptocurrency control tools vary by regions and countries. Some countries prohibit the circulation of cryptocurrencies, others determined their legal status. At the same time it can be used as solely administrative methods for regulating activities in the field of cryptocurrencies, and their possible combination with economic methods. Cryptocurrencies taxation prevails among economic methods, which is predominantly used in developed countries. As the positive foreign experience shows, it is necessary to develop the principles of regulation of the cryptocurrencies market in Ukraine. This should be based, on the one hand, on compliance with the FATF as to the fight against terrorist financing, the provision of cyber security and tax revenues to the budget, and, on the other hand, compliance with the protection of the rights of consumers of financial services. Therefor it is necessary to establish requirements for the identification of participants in crypto-currency transactions and the licensing of activity of cryptocurrency exchanges. At the same time, it would be advisable to tax the activity with cryptocurrency by personal income tax and corporate income tax coupled with a single social contribution.

Authors and Affiliations

Svitlana VOLOSOVYCH

Keywords

EP ID EP408649
DOI -
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