{"id":2802,"date":"2025-12-02T21:54:54","date_gmt":"2025-12-02T19:54:54","guid":{"rendered":"https:\/\/eppd13.cz\/?page_id=2802"},"modified":"2025-12-02T21:56:19","modified_gmt":"2025-12-02T19:56:19","slug":"the-impact-of-virtual-asset-regulation-on-the-balance-of-domestic-and-foreign-policy-the-dimension-of-national-security-in-the-european-space","status":"publish","type":"page","link":"https:\/\/eppd13.cz\/?page_id=2802","title":{"rendered":"The Impact of Virtual Asset Regulation on the Balance of Domestic and Foreign Policy: the Dimension of National Security in the European Space"},"content":{"rendered":"<p><strong>DOI: <\/strong><a href=\"https:\/\/doi.org\/10.46340\/eppd.2025.12.5.3\">10.46340\/eppd.2025.12.5.3<\/a><\/p>\n<p><strong>Vladyslav Gniezdilov<\/strong><br \/>\n<em>State Institution \u201cSouth Ukrainian National Pedagogical University named after K. D. Ushynsky\u201d<\/em><\/p>\n<p><a href=\"https:\/\/eppd13.cz\/wp-content\/uploads\/2025\/2025-12-5\/05.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2167\" src=\"http:\/\/eppd13.cz\/wp-content\/uploads\/2024\/01\/icon72-pdf-eppd.png\" alt=\"\" width=\"72\" height=\"72\" data-id=\"2167\" \/><\/a><\/p>\n<p><strong><em>How to cite: <\/em><\/strong>Gniezdilov, V. (2025). The Impact of Virtual Asset Regulation on the Balance of Domestic and Foreign Policy: the Dimension of National Security in the European Space. <em>Evropsk\u00fd politick\u00fd a pr\u00e1vn\u00ed diskurz, 12, 5,<\/em> 48-51. <a href=\"https:\/\/doi.org\/10.46340\/eppd.2025.12.5.3\">https:\/\/doi.org\/10.46340\/eppd.2025.12.5.3<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Abstract<\/strong><\/p>\n<p>The article highlights the timeliness of researching the institutionalization of the virtual assets (VA) market, particularly cryptocurrencies, and its transformation from a niche technological innovation into a significant factor in international relations and public policy. It emphasizes that virtual assets challenge the state\u2019s traditional monopoly on money issuance and control over financial flows, creating new threats to national security. In response, governments are compelled to develop comprehensive public policies that lie at the intersection of competing interests. The study argues that this conflict of interests is especially acute in the European space, where the European Union, through the Regulation on Markets in Crypto-Assets (MiCA), seeks to establish uniform rules that will have global implications.<\/p>\n<p>The purpose of the article is to determine how virtual assets influence the balance between domestic and foreign policy priorities of states and their role in ensuring national security within the European space. According to this purpose, the research sets the following objectives: to demonstrate that public policy on cryptocurrency regulation represents a point of convergence between internal and external political interests; to show that domestic policy in this area aims to protect consumers and combat crime; and to argue that in the sphere of foreign policy, this direction serves as a tool of geopolitical influence and protection of sovereignty for European states, thereby strengthening collective national security.<\/p>\n<p>Thus, the political science conceptualization of cryptocurrency regulation is examined not as a technical or economic matter but as a strategic security task, in which the state must balance the competing imperatives of domestic innovation and external security. Regulation of virtual assets is no longer optional but has become a critical component of state policy. A successful balance between domestic (economic development) and external (security and sanctions) priorities will determine the resilience of the state in the new digital reality.<\/p>\n<p><em><strong>Keywords:<\/strong><\/em> state, EU, national security, regulatory policy, cryptocurrency, virtual assets, European space, domestic policy, foreign policy, MiCA, FATF.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>References<\/strong><\/p>\n<p style=\"padding-left: 40px;\">Staryk, V. (2025). Virtualni aktyvy ta kryptovalyuta: shcho novoho u podatkovomu rehulyuvanni u 2025 rotsi? [Virtual Assets and Cryptocurrency: What&#8217;s New in\u00a0Tax Regulation in\u00a02025?] <em>Fedoryshyn &amp; Partners<\/em>. <a href=\"https:\/\/www.fedoryshyn.com\/virtualni-aktyvy-ta-kryptovalyuta-shho-novogo-u-podatkovomu-regulyuvanni-u-2025-roczi\/\">https:\/\/www.fedoryshyn.com\/virtualni-aktyvy-ta-kryptovalyuta-shho-novogo-u-podatkovomu-regulyuvanni-u-2025-roczi\/<\/a> [in Ukrainian].<\/p>\n<p style=\"padding-left: 40px;\">Zavada, T. Y. (2022). Vyznachennya ponyattya \u00abRynok kryptovalyut\u00bb u finansovo-pravovomu aspekti [Definition of\u00a0the\u00a0Concept of\u00a0&#8220;Cryptocurrency Market&#8221; in\u00a0the\u00a0Financial and Legal Aspect]. <em>Naukovi zapysky Lvivskoho universytetu biznesu ta prava. Seriya ekonomichna. Seriya yurydychna<\/em> [Scientific Notes of\u00a0the\u00a0Lviv University of\u00a0Business and Law. Economic Series. Legal Series], <em>35<\/em>, 264-272. [in Ukrainian].<\/p>\n<p style=\"padding-left: 40px;\">Myronov, O. (2024). Stabilnist ta variatyvnist tsiny virtualnykh aktyviv: modelyuvannya ta prohnozuvannya tsinovykh rukhiv na rynku kryptovalyut [Stability and Variability of\u00a0Virtual Asset Prices: Modeling and Forecasting Price Movements in\u00a0the\u00a0Cryptocurrency Market]. <em>Naukovi perspektyvy<\/em> [Scientific Perspectives], <em>4\u00a0(46)<\/em>, 130-141. [in Ukrainian].<\/p>\n<p style=\"padding-left: 40px;\">ResearchGate (2025). <em>Deconstructing the\u00a0Geopolitics of\u00a0Crypto-currency: The Impact of\u00a0Bitcoin on Global Economic Power Dynamics.<\/em> <a href=\"https:\/\/www.researchgate.net\/publication\/392475135_Deconstructing_the_Geopolitics_of_Crypto-currency_The_Impact_of_Bitcoin_on_Global_Economic_Power_Dynamics\">https:\/\/www.researchgate.net\/publication\/392475135_Deconstructing_the_Geopolitics_of_Crypto-currency_The_Impact_of_Bitcoin_on_Global_Economic_Power_Dynamics<\/a><\/p>\n<p style=\"padding-left: 40px;\">Joshi, N. (2025). Cryptocurrency in\u00a0the\u00a0Russia-Ukraine Conflict: Lessons for Geopolitics and Global Finance. <em>The\u00a0Geopolitics<\/em>. <a href=\"https:\/\/thegeopolitics.com\/cryptocurrency-in-the-russia-ukraine-conflict-lessons-for-geopolitics-and-global-finance\/\">https:\/\/thegeopolitics.com\/cryptocurrency-in-the-russia-ukraine-conflict-lessons-for-geopolitics-and-global-finance\/<\/a><\/p>\n<p style=\"padding-left: 40px;\">European Parliament (2024). <em>Digital Finance Legislation: Overview and State of\u00a0Play. <\/em><a href=\"https:\/\/www.europarl.europa.eu\/RegData\/etudes\/BRIE\/2024\/762308\/EPRS_BRI(2024)762308_EN.pdf\">https:\/\/www.europarl.europa.eu\/RegData\/etudes\/BRIE\/2024\/762308\/EPRS_BRI(2024)762308_EN.pdf<\/a><\/p>\n<p style=\"padding-left: 40px;\">World Economic Forum (2025). <em>Global Cybersecurity Outlook 2025<\/em>. <a href=\"https:\/\/reports.weforum.org\/docs\/WEF_Global_Cybersecurity_Outlook_2025.pdf\">https:\/\/reports.weforum.org\/docs\/WEF_Global_Cybersecurity_Outlook_2025.pdf<\/a><\/p>\n<p style=\"padding-left: 40px;\">Chainalysis (2025). <em>2025 Crypto Crime Trends: Illicit Volumes Portend Record Year as\u00a0On-Chain Crime Becomes Increasingly Diverse and Professionalized.<\/em><br \/>\n<a href=\"https:\/\/www.chainalysis.com\/blog\/2025-crypto-crime-report-introduction\/\">https:\/\/www.chainalysis.com\/blog\/2025-crypto-crime-report-introduction\/<\/a><\/p>\n<p style=\"padding-left: 40px;\">TRM Labs (2024). <em>OFAC Sanctions Russia-Based Crypto Exchanges and Fintech&#8217;s for Facilitating Sanctions Evasion.<\/em> <a href=\"https:\/\/www.trmlabs.com\/resources\/blog\/us-treasurys-ofac-sanctioned-russia-based-crypto-exchanges-and-fintechs-for-facilitating-sanctions-evasion\">https:\/\/www.trmlabs.com\/resources\/blog\/us-treasurys-ofac-sanctioned-russia-based-crypto-exchanges-and-fintechs-for-facilitating-sanctions-evasion<\/a><\/p>\n<p style=\"padding-left: 40px;\">FATF (2025). <em>The FATF Recommendations.<\/em><br \/>\n<a href=\"https:\/\/www.fatf-gafi.org\/en\/publications\/Fatfrecommendations\/Fatf-recommendations.html\">https:\/\/www.fatf-gafi.org\/en\/publications\/Fatfrecommendations\/Fatf-recommendations.html<\/a><\/p>\n<p style=\"padding-left: 40px;\">FATF (2024). <em>Virtual Assets: Targeted Update on Implementation of\u00a0the\u00a0FATF Standards on VAs and VASPs.<\/em> <a href=\"https:\/\/www.fatf-gafi.org\/en\/publications\/Fatfrecommendations\/targeted-update-virtual-assets-vasps-2024.html\">https:\/\/www.fatf-gafi.org\/en\/publications\/Fatfrecommendations\/targeted-update-virtual-assets-vasps-2024.html<\/a><\/p>\n<p style=\"padding-left: 40px;\">Pingen, A. (2023). New Rules for Crypto-Assets in\u00a0the\u00a0EU. <em>\u0415ucrim<\/em>.<br \/>\n<a href=\"https:\/\/eucrim.eu\/news\/new-rules-for-crypto-assets-in-the-eu\/\">https:\/\/eucrim.eu\/news\/new-rules-for-crypto-assets-in-the-eu\/<\/a><\/p>\n<p style=\"padding-left: 40px;\">U.S. Department of\u00a0the\u00a0Treasury (2025). <em>Treasury Sanctions Cryptocurrency Exchange and Network Enabling Sanctions Evasion and Cyber Criminals<\/em>. <a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0225\">https:\/\/home.treasury.gov\/news\/press-releases\/sb0225<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DOI: 10.46340\/eppd.2025.12.5.3 Vladyslav Gniezdilov State Institution \u201cSouth Ukrainian National Pedagogical University named after K. D. Ushynsky\u201d How to cite: Gniezdilov, V. (2025). The Impact of Virtual Asset Regulation on the Balance of Domestic and Foreign Policy: the Dimension of National Security in the European Space. Evropsk\u00fd politick\u00fd a pr\u00e1vn\u00ed diskurz,&#8230; <a class=\"continue-reading-link\" href=\"https:\/\/eppd13.cz\/?page_id=2802\"> Continue reading <span class=\"meta-nav\">&rarr; <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":2785,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2802","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/eppd13.cz\/index.php?rest_route=\/wp\/v2\/pages\/2802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eppd13.cz\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/eppd13.cz\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/eppd13.cz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eppd13.cz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2802"}],"version-history":[{"count":3,"href":"https:\/\/eppd13.cz\/index.php?rest_route=\/wp\/v2\/pages\/2802\/revisions"}],"predecessor-version":[{"id":2805,"href":"https:\/\/eppd13.cz\/index.php?rest_route=\/wp\/v2\/pages\/2802\/revisions\/2805"}],"up":[{"embeddable":true,"href":"https:\/\/eppd13.cz\/index.php?rest_route=\/wp\/v2\/pages\/2785"}],"wp:attachment":[{"href":"https:\/\/eppd13.cz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}