VIRTUAL ASSETS AS A SUBJECT OF LEGALISATION (LAUNDERING) OF CRIMINALLY OBTAINED MONEY

Abstract

The article examines the legal character of the concept of "virtual asset" as an object of civil-law relations through the prism of the national legal framework. It analyses the correspondence of the established in domestic legislation definition with the definitions used within the international legal community. It outlines the legislative basis of virtual assets turnover in Ukraine. The author addresses the disposition of Article 209 “Legalization (laundering) of criminally obtained money” of Criminal Code of Ukraine and analyses the possibility of virtual assets’ usage as the subject of the crime provided for by the abovementioned article. The research provides a general description of financial transactions with virtual assets’ usage as well as outlines a number of criminal mechanisms that could be implemented in order to legalize illegal income obtained using property in the form of virtual assets. The article analyses the compliance of the Law of Ukraine “On Virtual Assets” and the Law of Ukraine “On Prevention and Counteraction to Legalisation (Laundering) of Criminal Proceeds, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction” with international standards of combating the legalization (laundering) of criminal proceeds, primarily the recommendations of the Financial Action Task Force on Money Laundering (FATF) and the Warsaw Convention (2005). It reveals the core of adopted by the lawmaker system of measures in order to prevent and combat the laundering of illegal income, including the use of virtual assets. It substantiates the opinion that some current legal acts need to be improved and amended. In particular, this applies to the Law of Ukraine "On Virtual Assets", as this Law is based on outdated FATF recommendations, as well as there is a need to introduce amendments to the provision of Article 209 of the Criminal Code of Ukraine, which requires an additional qualification – the legal recognition of virtual assets as the subject of abovementioned crime.