THE EVOLUTION OF CRYPTOCURRENCY LEGISLATION: HISTORICAL BACKGROUND AND ETHICAL ASPECTS OF CRIMINALIZATION

Abstract

Purpose. The purpose of this study is to conduct a comprehensive analysis of the historical preconditions for the emergence of cryptocurrency and the evolution of the legal framework governing social relations related to its use in Ukraine, as well as to identify the characteristics and limits of criminal law protection for cryptocurrency and the ethical foundations for its criminalization. Particular attention is paid to establishing the relationship between the formation of the legal status of cryptocurrency and the possibility of recognizing it as the subject of criminal offenses, as well as to determining the permissible limits of criminal law intervention in the sphere of digital assets. Methods. A combination of general scientific and specialized legal methods was used in the course of the study. The historical-legal method was used to trace the main stages in the emergence of cryptocurrency and the development of legislation in this field. The formal-legal method was applied to analyze the legal provisions defining the legal nature and status of cryptocurrency and virtual assets. The systemic method allowed for an examination of the criminal law protection of virtual assets in relation to other areas of legal regulation. Using the method of analysis and generalization, the main problems of criminalizing socially dangerous acts related to the use of cryptocurrency were identified, and corresponding conclusions were formulated. Results. It has been established that the development of cryptocurrency – as a result of the evolution of electronic payment systems, digital money, and decentralized technologies – occurred much more rapidly than the formation of an appropriate regulatory framework. This study analyzes the evolution of approaches to the legal regulation of cryptocurrency in Ukraine – from initial legal uncertainty and attempts to classify Bitcoin within traditional legal categories to the gradual regulatory recognition of the concept of a “virtual asset.” It is argued that defining the legal nature of cryptocurrency is of fundamental importance for criminal law, as it establishes the prerequisites for determining whether it can be recognized as the subject of criminal offenses. It has been established that cryptocurrency can have independent property value and, at the same time, be used in mechanisms for committing socially dangerous acts, in particular fraud, unlawful appropriation of property, money laundering, and other offenses. The ethical aspects of criminalization have been examined, and the following key guiding principles have been identified: the social danger of the act, fairness, proportionality, legal certainty, and the principle of ultima ratio. Conclusions. The development of legislation in the field of cryptocurrency is a natural response by the state to the transformation of social relations under the influence of digital technologies. At the same time, a timely regulatory response should not lead to an unjustified expansion of criminal law prohibitions. Criminalization should not target cryptocurrency as a technological or property-related phenomenon, but rather specific socially harmful acts associated with its use. Further improvement of the criminal law protection of virtual assets should be carried out in accordance with the dynamics of the development of social relations, ensuring a balance between the effective protection of property interests, the prevention of criminal offenses, and the avoidance of excessive interference in the lawful circulation of digital assets.