TAXATION OF CRYPTOCURRENCIES: INTERNATIONAL EXPERIENCE AND LESSONS FOR UKRAINE

Introduction. The modern financial and banking system is characterized by the active use of digital technologies that allow transforming existing processes and bringing innovative products to the market. Due to the growing power of computing systems based on server technologies and the possibility of accumulating big data, various approaches are being developed. The blockchain has become widespread, which, on the basis of various algorithms, allows the use of digital currencies in the financial and banking system. A significant number of users are showing interest in using cryptocurrencies for profit. Accordingly, there is a need to research the cryptocurrency market, vectors of its development and impact on national and global economic systems. It is important for countries to exercise control over digital currencies in order to monitor the legality of transactions and fill budgets by taxing the profits of individuals and legal entities from the use of various cryptocurrencies. Purpose. The purpose of the study is to determine the effective mechanisms of taxation of operations on the cryptocurrency market in Ukraine in accordance with best practices, which will allow to optimize the system of tax administration in the conditions of war and socio-economic instability in the country in order to fill the state budget. Materials and methods. The work uses normative legal acts on the regulation of the use of cryptocurrencies in the country and the peculiarities of income taxation received from transactions with digital money, scientific articles by Ukrainian and foreign scientists in the field of blockchain, which reveal the peculiarities of the use of crypto assets in the financial and banking sphere at the national and global level levels, are studying the problems of ensuring a fair tax burden on different users of digital assets. In the process of carrying out the research, methods of generalization and systematization were used to describe the features of the functioning of the cryptocurrency market in modern conditions and the characteristics of the main digital money. The methods of comparative and systematic analysis were applied to generalize the experience of advanced countries of the world regarding the implementation of an effective tax policy regarding the income of citizens from the sale of cryptocurrencies. Results. The scientific article reveals the reasons for the active growth of the cryptocurrency market in modern conditions. The main factors that positively and negatively affect the development of the digital currency market are given, including the war in Ukraine as a destructive factor for the global financial system. The cryptocurrency market in 2024 is analysed and the main characteristics of the ten most popular digital currencies are given. The reasons for the significant popularity among bitcoin users and the prospects for its further popularization as a result of government policy in the USA in the future are determined. The specifics of investing in cryptocurrencies in Ukraine are revealed and the reasons for the growing popularity of digital assets among citizens are analysed. The legislation of Ukraine regarding the regulation and taxation of the cryptocurrency market in the country has been studied. An analysis of the peculiarities of cryptocurrencies taxation in the USA, as one of the most developed countries in the world, was carried out, and the possibility of introducing a progressive scale of digital currencies taxation in Ukraine was considered. The expediency of studying the experience of EU member states regarding the taxation of cryptocurrencies in the context of the implementation of the European development vector of Ukraine has been proven. Discussion. Further scientific research on the improvement of the tax administration system and regulation of the cryptocurrency market is inextricably linked with the comprehensive analysis of innovative digital technologies.