REGULATORY AND LEGAL FRAMEWORK FOR THE INSTITUTIONAL ATTRACTIVENESS OF UKRAINE’S IT SECTOR IN THE CONTEXT OF GLOBAL MARKETING OF DIGITAL SERVICES
Abstract
The purpose of this article is to conduct a systematic analysis of the legal framework governing Ukraine’s IT sector and a comparative study of international practices to identify areas for improving legislation. The study covers three structural dimensions: the special tax and employment regime of Diya City, personal data protection and cybersecurity, and the protection of intellectual property in the digital environment. It has been established that the current regulatory framework constitutes a fragmented system comprising more than twenty special laws without a single codified act. The effectiveness of the Diya City regime is confirmed by measurable indicators: the number of residents increased from 72 in the first quarter of 2022 to 1,287 by the end of 2024, the total workforce exceeded 84,000 specialists, the average monthly salary reached 2,510 euros, and the share of gig contracts stands at 72%. Vulnerabilities in the regime have been identified: pseudo-gigification, a narrowing of protection against inspections under martial law, and the failure to extend the reservation mechanism to gig specialists. Gaps in the regulation of defense technologies (MilTech) and export controls on dual-use software were examined separately. The need for legislative recognition of smart contracts and the harmonization of virtual asset regulation with the MiCA Regulation was argued. A comparison with EU regulatory frameworks (GDPR, DSA, DMA, AI Act), Estonia, Singapore, and Israel revealed that Ukraine lags behind in three areas: the absence of artificial intelligence legislation, the lack of regulation governing cross-border data transfers, and the underdevelopment of mandatory cybersecurity standards for the private sector (25th place in the ITU GCI 2024 ranking). A matrix of eight legislative reforms has been formulated, with priorities and timelines defined. It is argued that legal reform serves as a tool for marketing Ukrainian digital services on the global market.