Improvement of legal regulation of intermediation in the virtual assets market

Authors

DOI:

https://doi.org/10.15587/2523-4153.2021.234724

Keywords:

intermediation, virtual assets market, virtual asset, cryptocurrency, virtual asset service provider

Abstract

Legal regulation of intermediation in the virtual assets market was analysed. It was grounded, that the professional assistance to virtual assets market participants is necessary because of complexity of transactions with virtual assets. It was found, that the virtual assets service providers carry out intermediation in the virtual assets market as an entity that is acting in the interests of third parties and providing intermediary services to the market participants. Based on the analysis of the legal concept of "intermediation", it was formulated, that intermediation in the virtual assets market can be considered as the economic activity of business entities – virtual assets service providers, - which is carried out with the purpose of providing intermediary services to virtual assets market participants. Types of intermediation in the virtual assets market include: 1) safekeeping or administration of virtual assets and keys of virtual assets; 2) exchange of virtual assets (except when exchange is not carried out directly by the consumers in their own interests); 3) transfer of virtual assets (except when the transfer is not carried out directly by the consumers in their own interests); 4) participation in and provision of financial services, related to an issuer’s offer and/or sale of a virtual asset.

It was found, that according to the draft law “On Virtual Assets” of June 11, 2020 No 3637 virtual assets service providers should be registered, but there is no mention about the license for providing intermediation in the virtual assets market. At the same time, it was grounded, that according to Ukrainian law, the financial intermediation in the virtual assets market, including participation in and provision of financial services, related to an issuer’s offer and/or sale of a virtual asset, should be a subject of licensing

Author Biography

Oleh Kulyk, Kyiv-Sviatoshynsky District Prosecutor's Office of Kyiv Region

PhD

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Published

2021-06-30

How to Cite

Kulyk, O. (2021). Improvement of legal regulation of intermediation in the virtual assets market. ScienceRise: Juridical Science, (2(16), 58–64. https://doi.org/10.15587/2523-4153.2021.234724

Issue

No. 2(16) (2021)

Section

Juridical Science

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Copyright (c) 2021 Oleh Kulyk

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