UDC338

Bezbedov V.V.¹ (Moscow, Russian Federation) – marta892010@mail.ru; Dudko A.V.² (Orenburg, Russian Federation) – dudko11111@mail.ru; Moryzhenkova N.V.¹ (Moscow, Russian Federation) – snatalia@execmba.ru; Laneeva E.A.¹ (Moscow, Russian Federation) – dudko0303@mail.ru

¹State University of Management

²Gubkin Russian State University of Oil and Gas

Abstract. This article explores the specifics of modern cryptocurrency market regulation. The development of the digital currency market is supported by various factors, particularly the growing interest of investors and consumers, constant technological innovations, and the gradual establishment of a favorable legislative framework. Despite obvious advantages, the market faces certain challenges and risks, such as high price volatility, potential regulatory barriers, and information security threats. Digital currencies are becoming an integral part of the modern economy, attracting the attention of not only financial sector professionals but also ordinary users. Thanks to the constant advancement of technology and the improvement of the regulatory framework, the possibilities for using digital currencies in various economic sectors are expected to further expand. Thus, the digital currency market demonstrates high potential for sustainable growth and long-term attractiveness. The current situation regarding the regulation of cryptocurrency markets is becoming a primary state priority for the issuer of digital currency, the Central Bank of Russia, which represents the financial and economic interests of the state as a whole. Cryptocurrencies have recently gained widespread popularity and are considered an alternative to traditional means of payment, not subject to direct government regulation, and aimed at replacing cash. Based on Federal Law No. 259-FZ of July 31, 2020, “On Digital Financial Assets, Digital Currency, and Amendments to Certain Legislative Acts of the Russian Federation” (hereinafter referred to as the “Federal Law on Digital Financial Assets”), general guidelines for monitoring and regulating the legality of cryptocurrency transactions have been established. This comprehensive approach aims to ensure the legality of transactions, protect the economic interests of digital asset market participants, and minimize the risks associated with the use of decentralized financial instruments. To this end, specialized economic and legal measures are being developed at the federal level to regulate the identification of platform users, prevent the possibility of illegal money laundering, combat the financing of terrorism, and establish standards for transaction transparency. Therefore, the legalization and legitimacy of cryptocurrency circulation ensures rapid adaptation to modern technological innovations in the field of distributed ledgers and smart contracts. Despite the formal recognition of cryptocurrencies primarily as assets in most jurisdictions, empirical experience demonstrates the variability of their functional purposes, covering a spectrum from investment tools to direct means of payment. The conceptual basis of digital currencies is characterized by the absence of a centralized banking institution that traditionally performs regulatory functions, as control over transaction processes is exercised by the participants of the decentralized network themselves through a specialized set of cryptographic algorithms. The availability of open source code for most existing cryptocurrencies contributes to increased technological transparency and accessibility of this innovative system to a wide range of users. The authors of the publication provide a comprehensive scientific analysis of potential factors for negative assessment by national fiscal institutions, due to the specific characteristics of this segment of the economy. The primary risk for government regulation of cryptocurrency markets lies in the highly decentralized nature of cryptocurrencies, which hinders effective monitoring of monetary transactions by government regulatory and oversight agencies. This study examines promising areas for legislative regulation of virtual money circulation, taking into account international experience in developing legal regimes applicable both to digital assets themselves and to business entities involved in this area of economic relations. Particular attention is paid to the inconsistency of positions among Russian authorities on this issue. The authors emphasize the need for international cooperation and coordination of scientific research to establish a balance between ensuring the legality of technology use (preventing terrorist financing and money laundering) and preventing the suppression of emerging innovation, violating the principles of fair competition, and threatening investor interests.

Keywords: inherent risks, regulatory issues, cryptocurrencies, volatility, digital currency, digital financial assets.

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For citation:  Bezbedov V.V., Dudko A.V., Moryzhenkova N.V., Laneeva E.A. Features of the development and functioning of the cryptocurrency market in modern economic realitiesa. CITISE, 2025, no. 4, pp. 456-467.