The article is devoted to the study of the legal status of cryptocurrency in Ukraine and its taxation

Despite the lack of legal regulation of cryptocurrency, its spread is significant and cannot be stopped. However, we consider it necessary to emphasize that the legislative vacuum is the basis for offenses and a significant delay in the economic and legal development of the state. It is impossible to build a strong economy and promote business development, trying to avoid the “problematic” issues facing the state. The term “cryptocurrency” does not have a single definition, and some of the scientists refer to it as digital money (currency), some – to virtual currency. However, there are features that distinguish cryptocurrency from other virtual currencies, including: valuation, structure, anonymity, transparency, transaction execution, legal aspects. Therefore, the advantages of using cryptocurrency include: decentralization, inability to fake, deflation, low cost of maintenance, etc. It should be noted that at the moment there is no clear tax algorithm that will work for every country without exception. Given the economic, social, legislative and cultural characteristics of states, the definition of the legal status of cryptocurrency is different. In Ukraine, proper taxation of cryptocurrency cannot be implemented without defining the legal status at the legislative level, which is why it is one of the first steps of the state in the given direction. Considering the fact that additional funds for the state budget, and especially in the current economic situation, are never unnecessary and can be efficiently spent on expenditures in different spheres, the issue of taxation of cryptocurrency has become quite acute today as a way of attracting additional funds for the state. ensuring that it fulfills its tasks and functions.