THEORETICAL AND METHODOLOGICAL CONCEPT OF INSTITUTIONAL TRANSFORMATIONS IN INTERNATIONAL AND NATIONAL CRYPTOCURRENCY MARKETS

Abstract

A one-sided understanding of cryptocurrency in terms of the technical model of its functioning does not allow to reveal its essence from the point of view of economic science, which hinders the formation of adequate institutional support for the procedure of issuance and circulation of cryptocurrencies in general. The author defines the essence of cryptocurrency market institutions as a system which includes official (hard) restrictions (rules), unofficial (soft) restrictions (standards of behavior and stereotypes of thinking) and intuition, which ensure the achievement of optimal organization, coordination and stimulation of participants' behavior and lead to a reduction in transaction costs. The institutionalization of cryptocurrency markets implies that changes in hard restrictions (regu-lations) do not simply lead to evasion or adaptation to their implementation by their participants. Insti-tutional transformations in cryptocurrency markets are the process of formation and development of their participating institutions and other entities that implement their inherent institutions in financial transactions with cryptocurrencies; regulation of this activity through official (hard) restrictions on financial behavior with enforcement mechanisms in the presence of unofficial (soft) restrictions. The main components of institutional transformations in the cryptocurrency market in Ukraine are the im-portation of institutions and institutional transformations that can lead to institutional traps and con-gruence/convergenceof these institutions.As for the theories (concepts) in the field of cryptocurrency markets, many years of experience show that their implementation requires a long time to grow and root the relevant institutions in the mass consciousness for a certain set of ideal procedures. If successful, such theories become effective tools for cryptocurrency operations. The strategy of institutional reform of cryptocurrency markets should be systemic, i.e., along with economic transformations, shifts in morality, social and individual consciousness, etc. must be taken into account.