The Particularities of Cyber Security Risk Management in Cryptocurrency Transactions

Abstract

Cryptocurrency is a digital asset based on blockchain technology, enabling decentralized and secure digital transactions. The acquisition, trading and investment in cryptocurrencies are based on the operation of a specialized infrastructure, which includes cryptocurrency exchanges, crypto banks, crypto friendly banks, crypto gateways, platforms and apps. The exponential growth in the number of cryptocurrencies and their integration into financial systems have led to an increased risk of cyber threats, including fraud, theft, and hacking. The article aims to explore the specific cybersecurity vulnerabilities associated with cryptocurrency transactions and reviews the contemporary risk management practices designed to mitigate them. The analysis is based on expert opinions, industry reports, and academic studies. Particular attention is given to the architecture of cyber-attacks and scams in the crypto domain. The research revealed a wide variety of cyber threats to cryptocurrency transactions, which are essentially cyber-attacks and various scam schemes. The objects of criminal activity are the elements of the cryptocurrency market infrastructure and cryptocurrency holdings in digital wallets. All procedures undertaken for to secure cryptocurrency transactions aimed at ensuring protection against fraudulent activities and maintaining the security of digital currency ownership meets the notion of cryptocurrency security. In international practice, complexes of techniques have been developed aimed at ensuring the cyber security of cryptocurrency transactions. The paper examined layered defense strategies that incorporate cryptographic protocols, regulatory frameworks, and artificial intelligence tools. The study emphasizes that effective cybersecurity in cryptocurrency transactions requires a combination of technological, organizational, and legal measures. The findings contribute to a deeper understanding of risk exposure and the practical steps necessary to secure digital assets in an evolving threat landscape. UDC: 005.334:[336.747.5:004.056.55]; JEL: B17, F31, L86.