№ 4/2022

Fìnansi Ukr. 2022 (4): 107–128https://doi.org/10.33763/finukr2022.04.107

MARKET OF FINANCIAL SERVICES

DMYTRENKO Tetiana ¹

¹Organization for Security and Co-operation in Europe
OrcID ID : https://orcid.org/0000-0002-2632-2986

Regulation of the virtual assets market as an instrument to counter the avoidance of international sanctions against the Russian federation

Introduction. The introduction of international sanctions as a tool to counter armed aggression by the Russian Federation in Ukraine aims to limit the resources of the aggressor country.
Problem Statement. Sanctions are applied to different sectors of the economy and the following sanctions are developed by countries taking into account revious results.
Purpose. The aim is to develop proposals to increase the impact on the implementation and effectiveness of international sanctions, the need for rapid and optimal action to legalize the crypto market, and implement a risk-oriented approach to cooperation between crypto and financial markets operators in Ukraine based on the analysis of sanctions circumvention schemes applied to banks,companies and individuals of the Russion Federation.
Methods. General and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization, and abstract-logical.
Results. Emphasis is placed on the urgent need to regulate the market for virtual assets in Ukraine, which requires a regulatory influence on national cryptocurrency operators involved in avoiding sanctions imposed on Russian banks, companies, and individuals, establishing interagency teams to investigate such activities, cooperation with foreign and international entities that the Russian federation.
Conclusions. The final decision on the immediate introduction of regulation of the virtual assets market, registration of its participants, and cooperation with foreign regulators and law enforcement agencies in this economic sector will promote more effective sanctions to stop russian aggression in Ukraine, provide evidence to international organizations to include aggressor countries in FAFT sanctions list and war crimes investigation.

Keywords:virtual assets, Over-The-Counter, military aggression, circumvention of international sanctions, risk-based approach, sanctioned banks, cryptocurrency exchange

JEL: F35, G28, Н56

Dmytrenko T. . Regulation of the virtual assets market as an instrument to counter the avoidance of international sanctions against the Russian federation / T. Dmytrenko // Фінанси України. - 2022. - № 4. - C. 107-128.

Article original in Ukrainian (pp. 107 - 128)

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