ANALYSIS OF THE BENEFITS OF CRYPTOCURRENCY LEGALIZATION AND ITS IMPACT ON PROMOTING ECONOMIC DEVELOPMENT IN UKRAINE AND WORLDWIDE

Abstract

This paper analyzes the potential benefits and long-term prospects of legalizing cryptocurrencies in Ukraine in the context of strengthening national economic stability, improving financial resilience, and ensuring sustainable economic development. It examines the key provisions of a draft law submitted to the Verkhovna Rada of Ukraine, with special focus on taxation of operations involving digital assets, mechanisms of market supervision and regulation, and the legal obligations of crypto-wallet owners. The study highlights the importance of legal certainty for reducing systemic risks, increasing transparency, and creating a predictable environment for businesses and investors. The research also integrates international experience based on global analytical data, which identifies that cryptocurrencies are currently legal in 119 countries and four British Overseas Territories, which indicates rapid global acceptance of digital assets as a new financial instrument. Europe demonstrates the highest level of legal recognition, where 39 out of 41 countries allow the legal use of cryptocurrency, while most countries in North and South America and Asia also show high levels of legal tolerance. At the same time, Africa remains one of the regions with the lowest share of countries that have fully legalized cryptocurrencies, which reflects uneven global development of regulatory approaches. An important conclusion of the study is that legal recognition alone is not sufficient for the stable development of the crypto market. Only about half of the countries where cryptocurrencies are legal have introduced comprehensive regulatory frameworks that cover licensing, taxation, consumer protection, and anti-money-laundering requirements. The experience of the European Union and Japan demonstrates that clear licensing systems and strict compliance standards can significantly increase trust in crypto markets. In contrast, fragmented regulatory approaches in some large economies illustrate the risks of legal uncertainty for both investors and market participants. Overall, the international experience analyzed in this paper shows that balanced and well-designed state regulation of cryptocurrencies can contribute to economic growth, enhance financial inclusion, improve the efficiency and speed of cross-border payments, reduce transaction costs, and accelerate the integration of innovative financial technologies, which is particularly relevant for Ukraine.