Legal aspects of crypto assets regulation: flexibility vs standardization

The article delves into an in-depth analysis of the current regulations governing crypto assets, both within Ukraine and on an international scale, with a particular focus on the European Union. It identifies a significant regulatory dilemma stemming from the dynamic nature of such a market, which necessitates a strategic decision between implementing specific, rigid rules or adopting a more flexible regulatory approach. Special attention is given to the concept of regulatory neutrality, which emerges as a potential solution amidst rapid technological advancements. The article underscores the potential effectiveness of regulatory neutrality over rigid, prescriptive rules, especially considering the pace of technological evolution within the crypto space. Drawing comparisons between the regulatory frameworks of the European Union and Ukraine, the article highlights their shared approach of permitting the circulation of virtual assets, albeit under the condition of adherence to specific regulatory stipulations. However, a critical examination reveals a potential violation of the principle of technological neutrality within these regulatory frameworks, which may hinder innovation and growth within the sector. Moreover, the article argues against the introduction of new regulatory bodies in the crypto asset sphere, citing existing entities as capable regulators. In addition to regulatory concerns, the article emphasizes the pressing need for further research in key areas such as the classification and taxation of virtual assets. Addressing these aspects is deemed essential for ensuring regulatory compliance, fostering investor confidence, and facilitating sustainable growth within the virtual asset ecosystem. Overall, the article provides a comprehensive exploration of the regulatory challenges and opportunities surrounding virtual assets, offering insights into potential pathways for achieving a balanced, effective regulatory environment conducive to innovation and market stability.

virtual assets, technological neutrality principle, crypto assets, legal regulation, payment services