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Development of Virtual Assets and Its Applications at the International and Domestic Levels

Author

Listed:
  • Oleksandr Petruk

    (Zhytomyr Polytechnic State University, Zhytomyr, Ukraine)

  • Serhii Zashchypas

    (Zhytomyr Polytechnic State University, Zhytomyr, Ukraine)

Abstract

The gradual integration of virtual assets into the institutional environment is accompanied by new challenges, including the growing role of large financial intermediaries, the concentration of risks, and the need to create a comprehensive legal environment. The article aims to analyze the state of the virtual assets sector and determine the main directions of their use at the international and national levels. The study uses a systematic and comparative approach that combines the analysis of statistical data from international platforms, examining legislative initiatives, and a review of scientific publications regarding virtual assets. The generalization method, structural and functional analysis, and a comparative legal approach made it possible to identify common trends, national characteristics, and regulatory gaps in the development of the virtual assets market. The results of the study indicate that the digital economy's virtual assets demonstrate steady growth in terms of the number of users and market volumes. The dynamics of the launch of Bitcoin ETFs and the development of institutional transfers indicate the gradual recognition of cryptocurrencies as a legitimate investment instrument and their integration into traditional financial portfolios. Thus, there is an increase in the level of trust institutional players and corporations have in virtual assets. The leading role in the growth of the virtual assets market is played by developing economies, primarily in Asia and Latin America. The development of DeFi and the growth of cross-border transfers strengthen the relationship between the virtual assets market and the traditional financial system, actualizing the challenges for monetary policy and regulatory supervision. In Ukraine, the high potential of the financial market for implementing innovative services actualizes the need to introduce effective mechanisms for auditing smart contracts, increasing cybersecurity standards, and protecting user rights. The study results indicate that, globally, the virtual asset market's rapid growth, stablecoins' development, and interaction with the traditional financial system are creating new challenges for monetary policy and financial stability.

Suggested Citation

  • Oleksandr Petruk & Serhii Zashchypas, 2025. "Development of Virtual Assets and Its Applications at the International and Domestic Levels," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 125-138, September.
    • Handle: RePEc:iaf:journl:y:2025:i:3:p:125-138
    DOI: 10.33146/2518-1181-2025-3(109)-125-138
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    References listed on IDEAS

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    1. Fang, Libing & Bouri, Elie & Gupta, Rangan & Roubaud, David, 2019. "Does global economic uncertainty matter for the volatility and hedging effectiveness of Bitcoin?," International Review of Financial Analysis, Elsevier, vol. 61(C), pages 29-36.
    2. Platanakis, Emmanouil & Urquhart, Andrew, 2020. "Should investors include Bitcoin in their portfolios? A portfolio theory approach," The British Accounting Review, Elsevier, vol. 52(4).
    3. Adachi, Mitsu & Da Silva, Pedro Bento Pereira & Born, Alexandra & Cappuccio, Massimo & Czák-Ludwig, Stephanie & Gschossmann, Isabella & Pellicani, Antonella & Philipps, Sarah-Maria & Plooij, Mirjam & , 2022. "Stablecoins’ role in crypto and beyond: functions, risks and policy," Macroprudential Bulletin, European Central Bank, vol. 18.
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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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