Mechanism of Implementation of International Standards in the Field of Virtual Assets Regulation: Administrative and Legal Dimension (Kherson State University Herald Series Legal Sciences)

Summary

• The article studies how international standards on virtual assets are implemented, drawing on FATF standards, FSB recommendations, MiCA, the Law of Ukraine On Virtual Assets and Draft Law No. 10225-d.p.2
• Implementation goes beyond codifying international provisions and forms a comprehensive administrative-legal system of regulatory, institutional, procedural, supervisory and control elements.p.2
• Key characteristics include systematicity, a multi-level approach, public-authority nature, rule-making combined with supervision, a risk-based approach and adaptability to technological change.p.2
• MiCA has no direct effect in Ukraine but serves as a benchmark for approximating national law to EU law.p.3
• Law No. 2074-IX defines basic concepts and the range of service providers, but its entry into force depends on tax legislation amendments.p.3
• FATF requires virtual asset service providers to operate under supervision, including licensing or registration and supervisory monitoring.p.5

Key insights

1. Implementation is not only normative codification but an organisational-legal form of ensuring practical realisation of standards.p.3
2. FSB recommendations stress comprehensive regulation, supervision and oversight with the powers, procedures and tools to apply them.p.4
3. A procedural dimension requires systems for collecting, storing, protecting and timely submitting data and regulator access to information.p.4
4. The risk-based approach requires continuous risk assessment and adjustment of regulatory and supervisory measures.p.5
5. New services such as custodial solutions, decentralised platforms and tokenisation continually change risk profiles and require regulatory updates.p.5
6. Rule-making alone does not ensure implementation without institutional capacity for supervision and control.p.5
7. Further research should examine administrative-legal means of applying standards in the work of national regulators and supervisors.p.6