Legal regulation of cryptocurrency circulation in Ukraine: tax and institutional aspects

Abstract

The article provides a comprehensive analysis of the legal and tax regulation of cryptocurrency circulation in Ukraine, taking into account the current state of national legislation, ongoing legislative initiatives, and foreign experience. It substantiates that the long-term absence of coordinated legal and fiscal mechanisms for regulating the virtual asset market significantly hinders its legalization, leads to legal and tax uncertainty, and complicates the implementation of effective public financial control.
The evolution of legal regulation of cryptocurrencies in Ukraine is examined, in particular legislative attempts to determine the legal nature of virtual assets, their place within the system of objects of civil rights, and mechanisms of state control. Special attention is paid to the analysis of Draft Law No. 10225-d, aimed at the legalization, taxation, and comprehensive regulation of the crypto-asset market. The study identifies the positive aspects of this draft law, including the formation of a more coherent model of state regulation, the introduction of transparent rules for fiscalization and de-shadowing of the crypto market, as well as the establishment of tax mechanisms for taxing the income of individuals and legal entities. At the same time, attention is drawn to the risks of excessive regulation, potential restrictions on market access for small innovative participants, and the need to further refine the draft law in accordance with the principles of proportionality, legal certainty, and competition.
Within the framework of the study, a comparative analysis of approaches to the regulation and taxation of cryptocurrencies in Poland, the United States, Germany, India, Singapore, and other jurisdictions is conducted. It is established that most foreign countries are characterized by a combination of financial and tax control over the circulation of crypto-assets, with fiscal authorities playing a key role, while taxation is predominantly based on the capital gains model, supplemented by the taxation of income from mining, staking, and the use of cryptocurrencies as a form of remuneration. The expediency of adapting these approaches in Ukraine is substantiated, taking into account the European integration course and the need to harmonize national legislation with EU law.