Legal Perspectives on Social Media-Driven Cryptocurrency Manipulation

Abstract

The global cryptocurrency market, driven by decentralized trading, has become increasingly vulnerable to manipulation through social media platforms like X, Reddit, Telegram, and Discord. This paper examines the phenomenon of social media-driven cryptocurrency market manipulation through a comparative legal lens, analyzing case studies from the United States, India, the European Union, and Singapore. It highlights regulatory responses such as the SEC and CFTC actions in the U.S., SEBI's evolving frameworks in India, EU's MiCA regulations, and Singapore's disclosure norms for digital assets. The study evaluates the effectiveness of these mechanisms in addressing cross-border manipulation and the liability of influencers and platforms under international financial laws. By integrating legal and behavioral perspectives, the paper proposes strategies for harmonized global regulation to ensure investor protection, transparency, and accountability in the digital asset ecosystem.