CRYPTOCURRENCY: FROM VIRTUAL COINS TO CODING STRATEGIES

Abstract

The article discusses the current problems, functioning of the cryptocurrency market at the present stage of development of the world financial system. The range of problems that may arise at the stage of creating a crypto business is also determined. Today, the popularity of digital money is growing every day, well-known publications write about it, the largest companies invest in them, and discuss it in government offices. From its inception to the present day, cryptocurrency has often been seen as an alternative to conventional money. Its advantages in the field of circulation are considered to be unlimited and confidential. However, cryptocurrency is defined as a digital code, with no basis in assets, and has limited control by government institutions. The nature of cryptocurrency remains a matter of debate among academics and experts, and its role has been compared to electronic money, securities, and other virtual assets. Such ambiguity is also reflected in the legislation of different countries and their judicial practice. In the European Union, there are directives aimed at de-shadowing cryptocurrency transactions, and individual countries establish their own legislation to regulate cryptocurrency circulation. Ukraine is also actively working on the development of its legislation in this area, including the adoption of by-laws and consideration of draft laws. In the course of the study, the history of the emergence of the first cryptocurrencies and their further development, as well as various types of cryptocurrencies and their features were considered. Today, there are over two thousand varieties of cryptocurrencies, and this number continues to grow as digital money becomes increasingly popular among internet users. The rapid development of this sector requires proper regulation by the legislation of different countries, as well as appropriate budget expenditures to ensure stability in society. Although the available literature does not describe in great detail the legal aspects of cryptocurrency circulation, the analysis of the positions of scientists and legislators gives a general idea of the growing interest in this market both in Ukraine and abroad. With proper regulation and interaction with legal regulations, cryptocurrencies can become an important part of people’s daily lives.