THE MECHANISM FOR IMPLEMENTING INTERNATIONAL STANDARDS IN THE REGULATION OF VIRTUAL ASSETS: AN ADMINISTRATIVE-LEGAL PERSPECTIVE

Abstract

The purpose of the article is to examine the mechanism for implementing international standards in the regulation of virtual assets, clarifying its administrative-legal nature, characteristic features, and functioning amid the technological dynamics of the digital financial environment. Methods. The methodological basis combines general scientific and special legal methods. The formal-legal method is used to analyse the normative content of the FATF and FSB standards and the EU Markets in Crypto-Assets Regulation (MiCA), the Law of Ukraine On Virtual Assets, and Draft Law No. 10225-d on regulating the circulation of virtual assets in Ukraine. The comparative-legal method is applied to compare doctrinal approaches to the category of implementation in domestic legal scholarship. The systemic-structural method identifies and systematises the defining features of the mechanism. Analysis, synthesis, and generalisation are used to formulate an integral characterisation of the mechanism and the resulting conclusions. Results. It is argued that implementation of international standards in the regulation of virtual assets is not limited to codifying international provisions in national legislation, but involves forming a comprehensive administrative-legal system encompassing regulatory, institutional, procedural, supervisory, and control elements. The key characteristics of the mechanism are identified, including systematicity, a multi-level approach, a public-authority nature, a focus on ensuring compliance, a combination of rule-making and supervision, a risk-based approach, and adaptability to technological change. Implementation is shown to occur through a comprehensive combination of regulatory provisions, the activities of public administration entities, administrative procedures, supervisory tools, and control mechanisms, with particular attention to the influence of the FATF standards and FSB recommendations, as well as MiCA as an act of EU law, on the modern model of administrative-legal regulation. Conclusions. The mechanism for implementing international standards in the regulation of virtual assets should be regarded as an integral administrative-legal system with a multi-level, risk-based structure. Its effectiveness depends directly on the ability of the national regulatory system to ensure risk-based, accountable, and adaptive administration of the virtual asset market amid continuous technological transformation and the development of decentralised finance.