Cryptocurrencies and Cybersecurity: A Study of Scope and Association

Abstract

This research addresses the issue of the illicit use of digital cryptocurrencies, considering it one of the most pressing contemporary legal challenges facing legislative systems, particularly given the unique technical features of these currencies-such as encryption, decentralisation, and anonymity. The significance of the study lies in examining the legal impact of cryptocurrencies on cybersecurity and analysing the adequacy of the legal framework in the United Arab Emirates in confronting crimes arising from their use. The study's core problem lies in the absence of a comprehensive legislative framework that regulates the use of cryptocurrencies and limits their exploitation in cross-border crimes, such as money laundering and terrorist financing. It also lies in the technical difficulties of tracking digital transactions and the lack of well-established legal concepts regarding the possession of cryptocurrencies and the liability of those dealing with them. The research adopts an analytical methodology through the study of relevant legal texts, in particular, Federal Decree-Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations; Federal Law No. 34 of 2021 on Combating Rumours and Cybercrimes; and Law No.4 of 2022 on the Regulation of Virtual Assets in the Emirate of Dubai. The study concludes that the current legislative structure is advanced at the regional level but requires further specialisation and technical flexibility. The study recommends issuing a federal law addressing digital assets, enhancing international cooperation in information exchange, adopting technical solutions such as artificial intelligence to track digital crimes, and equipping the competent authorities with advanced legal tools to regulate transactions in this field.