Abstract
Cryptocurrency has a dual nature, serving as both a tool for financial inclusion and resilience, as well as a security threat. Research on cryptocurrency adoption and market dynamics in Central and Southern Asia, Sub-Saharan Africa, and Latin America from 2019 to 2024 reveals significant adoption driven by financial needs, with the market expected to reach $13.19 billion by 2030. However, the study also highlights the risks associated with cryptocurrency, including its use by terrorist organizations, which raised $193 million during the study period. To mitigate these risks, the study recommends implementing robust regulatory measures. This includes Know Your Customer (KYC) protocols for cryptocurrency exchanges, international tracking standards for cross-border transactions, and advanced blockchain analytics to monitor suspicious activities. Additionally, public-private partnerships are essential for striking a balance between innovation and security. The Paper underscores the need for informed regulatory frameworks that promote innovation while addressing risk management. By adopting a balanced approach to cryptocurrency regulation, policymakers and industry stakeholders can harness the potential of cryptocurrency to transform the international financial landscape while minimizing its risks. Ultimately, this study’s findings can inform policy decisions and industry practices, promoting a more secure and innovative financial system.
Keywords: Cryptocurrency, Financial innovation, Emerging markets, Blockchain, International security, Regulatory challenges, Financial development
