Mogyl L. Legal support for the use of cryptocurrency in economic circulation

The relevance of this research is underscored by dynamic economic reforms, compounded by military aggression from the Russian Federation, financial market instability, and shifts in demand and supply in the consumer market concerning cryptocurrency use, among other factors. Existing scholarly literature analysis confirms that defining the procedure and conditions for cryptocurrency use as part of legal regulation in economic law remains a subject of debate. Some aspects are inadequately explored and unresolved for practical purposes. The evolving economic and financial reform policies also create a need for a better understanding, especially in the context of aligning national legislation with EU regulations. The introduction of this dissertation establishes the author's scientific interest in the chosen topic, emphasizing its economic and legal regulation aspects. It defines the goal, tasks, object, and subject, as well as the research methodology. The author justifies the scientific novelty and practical significance of the results obtained and provides information on research approval and publication. This work primarily defines cryptocurrency as an economic and legal fiction. It is an interchangeable form of virtual asset in the shape of encrypted electronic records. Cryptocurrency's issuance and accounting are decentralized, relying on distributed ledger technology and cryptographic algorithms. Cryptocurrency is an object of property rights and has the capability to facilitate both circulation and accumulation functions. Arguing that classifying cryptocurrencies as intangible assets is impractical, given their ability to perform essential functions comparable to non-cash funds, this work highlights the inconsistency between cryptocurrency's legal nature and its economic properties. This inconsistency poses a potential threat in terms of accounting (tax) characteristics versus the general legal regime of ownership of this virtual asset. From the perspective of state economic policy, this dissertation identifies a direction towards incorporating cryptocurrency transactions into the broader economic landscape. This direction should subject cryptocurrency use to interagency state influence to align with international economic significance, counter shadow transactions, and harmonize cryptocurrency with other financial instruments. Importantly, it introduces the notion that during periods of martial law, economic policies should consider the potential benefits of cryptocurrency for the Ukrainian people. This involves prohibiting cryptocurrency purchase with national currency and strictly limiting access to Ukrainian markets for crypto exchanges related to aggressor countries and their allies.