GLOBAL EXPERIENCE IN FINANCIAL MONITORING OF CRYPTOCURRENCY TRANSACTIONS (ON THE EXAMPLE OF JAPAN, THE US AND THE EU)

Abstract

The article outlines the distinctive features of monitoring cryptocurrency transactions in Japan, the USA, and the EU countries. Its purpose is to analyse the worldwide practices of financial monitoring concerning cryptocurrency transactions. Techniques of theoretical generalisation, systematisation, comparative analysis and graphic methods were used in the research. The informational basis of the research was the works of domestic scientists devoted to the indicated problems, reports of international organisations. It is determined that under the influence of the accelerated development of cryptocurrency circulation, the financial monitoring systems of the leading countries of the world are changing in accordance with the recommendations of international standards. Such changes have already taken place in Japan, the USA and the EU. This allowed Japan to gain additional opportunities to track virtual currency transfers, which is a confirmation of the high requirements for financial monitoring in this country. As for the United States, the regulation of cryptocurrency transactions is complex, as cryptocurrencies may fall under the jurisdiction of different regulatory authorities depending on their nature. The adoption of the EU's MiCA makes Europe a well-regulated place for cryptocurrency trading, thereby helping to reduce the risks of its use for money laundering and terrorist financing. It is determined that cryptocurrency has a different legal status (as a means of payment, as a financial asset, as a digital asset, and so forth). In order to eliminate the possibility of its use in illegal activities, it is necessary to comply with international recommendations on combating money laundering and terrorist financing when building and improving national financial monitoring systems. Therefore, at the level of each country, the issues of proper legal regulation of cryptocurrencies, clear regulation of the activities of virtual currency intermediaries, and the procedure for controlling the risks of money laundering and terrorist financing using cryptocurrencies should be determined.