Abstract
<jats:p>The article substantiates the relevance of researching the cryptocurrency market in Ukraine as one of the most dynamic segments of the digital economy, which requires effective state regulation. The study highlights the main characteristics of the cryptocurrency market, including high volatility, absence of geographical boundaries, decentralization, transparency of transactions combined with user anonymity, limited emission of many cryptocurrencies, low entry threshold, and specific security risks. Current issues of the market are analyzed, such as legal uncertainty in cryptocurrency classification, speculative risks, potential use for illegal activities, lack of a clear fiscal policy, and insufficient consumer protection mechanisms. The research summarizes the main limitations and challenges of the Ukrainian market, including low financial literacy, weak integration with the banking system, limited access to global exchanges, lack of state support, and high geopolitical instability. Special attention is paid to the analysis of the current legal framework, particularly the Law of Ukraine “On Virtual Assets,” and its compatibility with the European regulatory environment. Based on international experience, the article proposes ways to improve state regulation of the cryptocurrency market in Ukraine: introducing clear legal definitions, adapting global standards (FATF, MiCA), implementing KYC and financial monitoring procedures, creating insurance schemes for cryptocurrency deposits, and developing taxation rules and accounting methods.</jats:p>