Classification of virtual assets in Ukraine

The article conducts research aimed at an attempt to form a general classification of virtual assets, in the understanding of the Law of Ukraine "On Virtual Assets", based on the characteristic features inherent in the products of the latest financial digital technology of distributed registry (blockchain), and having a common well-known name – cryptocurrency. At the same time, to study the procedure of virtual assets issue in the context of subject composition (resident, non-resident). The formation of a fundamentally new technological environment based on modern digital technologies affects various spheres of life, and for the most part, a wide implementation in financial transactions and cross-border payments. And one of these progressive technologies is considered "blockchain", is a distributed ledger technology, a parallel solution for transactions and data management, well known for being the basis for the functioning of cryptocurrency, including the most famous, Bitcoin. Thus, penetrating into a wide variety of human activities, modern digital technologies have created the basis for the formation of a fundamentally new environment of legal regulation. The influence of the modern "digital revolution" gradually began to expand on the formation of the relevant norms of national law in Ukraine. The Supreme Rada of Ukraine adopted on 17.02.2022 the Law of Ukraine "On Virtual Assets" № 2074-IX (hereinafter – the Law 2074), which was signed by the President of Ukraine on 15.03.2022. As a result of the study, a classification of virtual assets was formed, and the results are presented graphically (Figure 1). A comparison of our classified virtual assets, as understood by the Law 2074, with the commonly known terms and definitions accepted by society as a digital financial category – cryptocurrency and other elements of the ecosystem of their digital existence was carried out. A number of shortcomings are also identified. There is a lack of completeness in the section "secured virtual asset" in Article 4 of Law 2074, along with "financial virtual asset". The existing legal definition of "financial virtual asset" is not defined, including in Article 1 "Definition of Terms" of Section I "General Provisions" of the Law 2074. According to the results of the study, our own vision on the formation of the definition of "secured virtual asset" that is absent in the Law 2074, namely the legal definitions of "financial virtual asset" and "commodity virtual asset" is proposed. The study found that the Law 2074, in Article 1, paragraph 1, sub-paragraph 7 understands among all relationships with virtual assets the issuance, but already in Article 1, paragraph 1, sub-paragraph 8, does not mention under the service providers activity, which is regulated – the issuance activity. This can be called a dissonance of provisions in Law 2074, which should be brought in line with each other.

classification, cryptocurrency, bitcoin, stablecoin, digital currency, electronic money