Determination of the Legal Status of Modern Banknotes in Ukraine and Abroad

Abstract

Legal regulation of operations with cryptocurrencyies is analyzed. It is found that the lack of control by the state is due to the imperfection of the existing regulatory system. The legalization and recognition of cryptocurrencies allows operations with them to be controlled and regulated as well as considered valid by and among individual participants in this process. In Ukraine, there is still no regulatory document that would regulate operations with cryptocurrencies. These currencies are not recognized in our country; therefore, it is impossible to tax operations in which they are used. The existing practice and approaches applied in many countries allow to develop our own approach to using such modern banknotes. This money has every chance of becoming an integral part of the global economy since some countries have intentions to allow its use and trade. The distinction between the concepts “electronic money” and “virtual currency” is considered. The main approaches to implementing taxation of cryptocurrencies, which depends on how they will be treated, are highlighted. It is established that in terms of accounting and tax accounting the process of cryptocurrency mining is an illegal enrichment. Within the legal framework, it is necessary to recognize the very process of mining virtual currency legal and treat virtual coins as cash. This will necessitate paying taxes on this activity, which in turn will require determining the taxable item and the tax base. Further, the legal approaches to the definition of cryptocurrency in the UK, Canada, China, Japan are analyzed.

Keywords

• bitcoin users
• operations with cryptocurrencies
• cryptocurrency exchange
• mining
• income