On the regulation of the cryptocurrency market in russia and other countries and on measures to prevent tax evasion attempts and the commission of illegal transactions with cryptocurrencies

The presented study examines the problems of regulating the cryptocurrency market in Russia and other countries, as well as measures to prevent attempts at tax evasion and illegal transactions with cryptocurrencies. Special attention is paid to the identification of possible tax evasion schemes in the implementation of these operations.

Goal. To consider the main problems of regulating the cryptocurrency market, which sometimes make it impossible for regulators, including tax authorities, to control this market. And also to study the measures that have been taken by regulators from various countries around the world, including Russia, to combat tax evasion.

Tasks. Consider the concept of "cryptocurrencies" in various jurisdictions, analyze the main difficulties for tax and other regulatory authorities to control transactions with cryptocurrencies; identify the main tax evasion schemes, as well as examine the measures taken by various countries in the fight against tax evasion.

Methodology. The study used general scientific methods, in addition to which an analysis of the current legislative bases regulating the cryptocurrency market was conducted, as well as creating conditions for preventing attempts to evade taxes and commit illegal transactions with cryptocurrencies. This included a study of both national and international regulations, which made it possible to assess the legal framework and potential risks associated with the current regulations. This comprehensive approach to the analysis of legislation has helped to identify current issues and shortcomings in regulation, as well as to offer recommendations for improving the regulatory environment.

Results. In the course of studying the approach to defining cryptocurrencies, as well as considering the main characteristics of cryptocurrencies, it was found that the concept of "cryptocurrency" requires a single definition to establish the legal status of this digital currency. There is a need to create conditions to prevent illegal transactions with cryptocurrencies, to operate effective investor protection mechanisms, to strengthen consumer protection, and to improve cooperation with international partners.

Conclusions. The conducted research indicates the need to change the legislative framework for the cryptocurrency market, taking into account the existing positive experience of various countries. The study also revealed the need to strengthen international cooperation to exchange information on operations in the cryptocurrency market in order to prevent attempts at tax evasion.

1. Franklin M. A profile of Bitcoin currency: An explanatory Study. International Journal of Business and Economic Perspectives, 2016, Vol. 11, No. 1, рр. 80-92.

2. Kudryavtsev M. V. The Evolution of Cryptocurrencies: from Volatility to Stability, Ekonomika i upravlenie: problemy, resheniya, 2024, Vol. 3, No. 4 (145), рр. 134–142. (In Russ.).

3. Nakamoto S. Bitcoin: A Peer-to-Peer Electronic Cash System, Published: 2008. URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3440802 (date of access: 26.04.2025).

4. Vakhrushev D. S., Zhelezov O. V. Cryptocurrency as a phenomenon of the modern information economy: problems of theoretical understanding, Naukovedenie, 2014, No. 5 (24), рр. 1–9. (In Russ.).

5. Fatf Report «Virtual Currencies – Key Definitions and Potential AML/CFT Risks». – France: Paris Cedex 16, the FATF Secretariat. 2014. – 17 р. Available at: https://eurasiangroup.org/files/FATF_docs/Virtual-currency-key-definitions-and-potential-aml-cft-risks.pdf.

6. VIRTUAL CURRENCY SCHEMES. – Germany: European Central Bank, 2012, 55 р. Available at: https://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf.

7. OBZOR PO KRIPTOVALYuTAM, ICO (INITIAL COIN OFFERING) I PODKhODAM K IKh REGULIROVANIYu [REVIEW ON CRYPTOCURRENCIES, ICO (INITIAL COIN OFFERING) AND APPROACHES TO THEIR REGULATION], Moscow: Bank Rossii, 2017, 14 р. (In Russ.). Available at: https://www.cbr.ru/content/document/file/36009/rev_ico.pdf.

8. Doklad dlya obshchestvennykh konsul'tatsii «Kriptovalyuty: trendy, riski, mery» [Report for public consultations "Cryptocurrencies: trends, risks, measures"], Moscow: Bank Rossii, 2022, 37 р. (In Russ.). Available at: https://cbr.ru/Content/Document/File/132241/Consultation_Paper_20012022.pdf.