Legal Response to Crypto Scams, Laundering, and Dark Web Crimes

Abstract

Using a select group of jurisdictions such as the USA and UK, this article provides an in-depth comparison of the regulations governing the sphere of finance and pays specific attention to how these regulations can be applied to the regulation of cryptocurrencies. It looks at the economic, technological, and social forces that support the appalling necessity to have a systematic and logical legal framework to regulate digital assets. Such crucial regulatory issues and opportunities as the consumer protection, financial security, and innovation potential of the crypto-market are also discussed. Using the comparison of various foreign models, the research highlights the fact that the successful regulation of cryptocurrencies should be very selective about two important goals that should be sought simultaneously: the maintenance of favourable, decentralised and innovative aspects of cryptocurrencies, and the prevention of threats to financial security, and even threats to the stability of the financial markets as such. The present analysis is relevant to the international debate on crypto regulation as it provides the insights concerning current gaps in regulation, feasible barriers, and prospects. It seeks to facilitate the generation of regulatory policies that not only provide effective regulation to confront the financial challenges but also amenable to innovation in the fast-paced changes in digital currencies.