The authors examine key issues related to establishing an effective legal framework for digitalization. The article explores various approaches to defining “digitalization” and the “digital economy,” identifying both the advantages and inherent risks associated with digital transformation. The regulatory basis necessary for fostering the digital economy within the State is also outlined. The main challenges to regulatory and legal governance in advancing digitalization processes are emphasized, such as the lack of a cohesive regulatory structure, barriers to access for the elderly, and the persistent threat of cyber-attacks. The article highlights Ukraine’s major achievements in the digitalization domain, particularly focusing on the legal framework governing the Diia platform. Special attention is given to the benefits of developing and utilizing the Unified State Web Portal of Electronic Services, also known as the Diia Portal. This portal integrates several crucial components, including e-governance, cybersecurity, e-democracy, e-business, e-justice, e-health, e-education, e-transport, smart cities, digital literacy, and universal Internet access. The conclusion notes the current lack of adequate legal regulation for digitalization processes and the absence of robust mechanisms to protect digital market participants’ rights. It is observed that, at this stage in societal development, the focus is shifting from the advantages of digitalization to addressing potential risks and developing preventative measures.