PROSPECTS AND CHALLENGES OF IMPLEMENTING CRYPTO-ASSET MARKET REGULATION (MiCA) IN UKRAINE

Abstract

Problem setting. The rapid development of crypto-assets compels countries to seek effective regulatory approaches. Their decentralized nature and growing importance as investment and payment instruments create economic opportunities but also pose challenges related to consumer protection, financial stability, and combating financial crimes. The EU introduced the MiCA regulation (Markets in Crypto-Assets Regulation) to harmonize regulatory approaches to the crypto market. Its high standards of transparency, consumer rights protection, and risk management could serve as a model for Ukraine within its European integration framework. For Ukraine, MiCA implementation presents an opportunity to harmonize national legislation and create a favorable environment for the crypto economy. However, challenges remain, including incomplete legislation, limited technological infrastructure, and socio-economic risks. Thus, studying the prospects and challenges of MiCA implementation in Ukraine is relevant, as it allows for assessing potential benefits and formulating recommendations for effective regulatory initiatives. Analysis of recent researches and publications. The issues of legal regulation of crypto-assets and their integration into financial markets have attracted researchers’ attention in recent years. In particular, Ferreira A. and Sandner P. examined the European Union’s search for regulatory solutions concerning crypto-assets and their role in financial infrastructure. The evolution and development of cryptocurrencies have been analyzed in the study by Jiang S., Li X., and Wang S., who explored trends in cryptocurrency research, transitioning from the study of underlying technologies to economic applications. Simultaneously, Papadimitriou T., Gogas P., and Gkatzoglou F. investigated the formation of the cryptocurrency market using complex network methods. Methodological approaches to analyzing financial instruments in digital ecosystems have been reflected in the research of Cuomo S., Sica F., and Toraldo G., who proposed new computational methods in financial modeling. Additionally, the regulation of crypto-assets in Ukraine is defined by the Law of Ukraine «On Virtual Assets», which establishes the legal status of digital assets but requires further improvements for implementation and harmonization with European standards, particularly under the MiCA regulation. Despite significant academic research and legislative initiatives, the regulatory integration of crypto-assets into the financial system, the implementation of MiCA in Ukraine, and the adaptation of international standards require further investigation. Purpose of research is to analyze the prospects and challenges of implementing the Markets in Crypto-Assets Regulation (MiCA) in Ukraine, evaluate its potential impact on the crypto-assets market, identify key advantages and risks, and provide recommendations for its adaptation to the Ukrainian context. Article’s main body. The regulation of crypto-assets has become a key focus in financial policy due to their growing role in global markets. The Markets in Crypto-Assets Regulation (MiCA), introduced by the EU, establishes a unified legal framework, ensuring market transparency, consumer protection, and financial stability. Given Ukraine’s European integration, adopting MiCA could significantly impact the national crypto market. This study examines MiCA’s key provisions, compares it with U.S. and Chinese regulatory models, and analyzes Ukraine’s current crypto regulations. Unlike the U.S. fragmented approach (SEC and CFTC oversight) and China’s crypto ban, MiCA offers a harmonized regulatory framework across the EU. In Ukraine, crypto regulation remains fragmented despite the Law on Virtual Assets. Key challenges include unclear taxation policies, undefined stablecoin status, lack of consumer protection, and regulatory gaps. While MiCA adoption could enhance investor protection, reduce fraud risks, and stabilize the market, challenges remain in legal adaptation, technological infrastructure, and compliance costs for businesses. MiCA could help integrate Ukraine into the European financial system, attract investment, and strengthen blockchain and fintech industries. The study proposes policy recommendations to align Ukraine’s regulations with MiCA, ensuring regulatory clarity and market stability. Conclusions and prospects for the development. The implementation of MiCA in Ukraine offers opportunities for regulatory harmonization, investor protection, and financial stability. Aligning national legislation with EU standards can enhance market transparency and attract foreign investment. However, challenges remain, including legal inconsistencies, unclear taxation policies, and fragmented regulatory oversight. The lack of stablecoin regulations and consumer protection mechanisms further complicates the process. Successful adoption requires clear legal frameworks, regulatory coordination, and investment in compliance infrastructure. Addressing these issues will ensure Ukraine’s integration into the European financial system and create a secure, innovative crypto market.