State control over the circulation of virtual assets in Ukraine

The article explores the pressing issue of state control over the circulation of virtual assets in Ukraine in the context of digital economy development, financial system globalization, and the growing popularity of cryptocurrencies. The author emphasizes the need for legal regulation of this sphere, taking into account international experience, particularly in the areas of anti-money laundering, countering terrorism financing, and tax evasion prevention. The author makes a critical review of the scientific literature on the issues of state control over the circulation of virtual assets in Ukraine, and at the same time emphasizes certain gaps in this area of legal research. Against the backdrop of blockchain technology and cryptocurrency market growth, Ukraine faces the urgent need to build an effective system of government oversight that ensures both transaction transparency and protection of stakeholders’ rights. Although the Law of Ukraine “On Virtual Assets” has been adopted, the regulatory framework remains incomplete due to the lack of secondary legislation. The author also elaborated on the regulatory definition of a virtual asset as an intangible good that is an object of civil rights, has a value and is expressed by a set of data in electronic form. At the same time, some practical issues of successful application of this concept by both national regulators and participants of the virtual asset market are emphasized. Special attention is paid to the role of the National Securities and Stock Market Commission as the licensing and supervisory authority for virtual asset service providers. The article also discusses the functions of other state bodies, such as the National Bank of Ukraine and the State Tax Service. The author concludes by justifying the necessity of enhanced interagency cooperation, digitalization of control processes, and the implementation of modern IT tools for monitoring virtual asset circulation to strike a balance between innovative development and national financial security.