The Legal Implications of Cryptocurrencies for Public Funds Protection and Financial Crime Prevention

The emergence of digital and cryptocurrencies has transformed the fields of finance, economics, technology, and investment by enabling fast transactions, a high degree of confidentiality, and decentralized exchange without the direct involvement of intermediaries or central banks. However, these features have also increased the attractiveness of cryptocurrencies for criminals, fraudsters, and perpetrators of financial crimes, particularly those involving public funds. This study aims to examine the nature of digital and cryptocurrencies and analyze their legal implications for the protection of public funds. It also explores how cryptocurrencies may be used in criminal activities and how such activities relate to crimes affecting public money. The study adopts a descriptive legal approach to examine cryptocurrency-related crimes, regulatory controls, and the legal protection of public funds. It discusses the concept, characteristics, mechanisms, advantages, and reasons for the global spread of cryptocurrencies. It also analyzes the general elements of crimes against public funds, their legal characteristics, civil protection mechanisms, and the relationship between cryptocurrency-related crimes and the misappropriation or theft of public funds. The findings emphasize the need for stronger regulatory coordination at the national and international levels, particularly through licensing requirements for crypto-asset service providers and clearer standards for authorization and supervision. The study also highlights the importance of tailoring regulatory requirements to the main uses of crypto-assets and stablecoins. It concludes with recommendations of legal, legislative, and jurisprudential significance, most notably the need for supervisory authorities to coordinate their efforts in addressing the diverse and evolving risks arising from the use of cryptocurrencies.