Honcharenko S. Administrative and Legal Regulation in the Sphere of Virtual Assets

The paper comprehensively studies the administrative and legal regulation in the field of virtual assets in Ukraine, as well as works out scientifically grounded proposals for the development of such regulation in Ukraine. The study of the development of computer technology in the last decades of the twentieth century has highlighted the stages of formation and development of the market of virtual assets (late 90's–2009; 2009–2013; 2013–2017; 2018–2019; 2019–present time), covering the period from the emergence of decentralized peer-to-peer technology, the fundamental concept of which is the block chain, and to the growth of the confidence by users in the virtual assets as promising investment tools, active normative regulation by a number of countries of mining and virtual assets. The features of virtual assets that determine their popularity, value to the consumer are considered (the ability to exchange goods and services and traditional currency; decentralization of the process of extraction of virtual assets; lack of intermediaries; anonymity of users; security; investment attractiveness) as well as the risks that users may face in the process of mining and circulation of virtual assets (high volatility; risks for investors; lack of means of protection of ownership of virtual assets, their guarantee and provision; vulnerability to hacking attacks of cryptocurrencies, fraud; non-acceptance as means of payment in retail chains; lack of control over transactions by use of virtual assets). Several proposals for the improvement of current legislation defining the legal status of bodies responsible for the support of the rights and legitimate interests of participants in the field of virtual assets and prevention of legalization of proceeds from crime, terrorist financing and proliferation of weapons of mass destruction in the above mentioned sphere have been formulated.