Regulating Cryptocurrencies: Between Innovation and Risk Management -An Academic Analysis of Regulatory Approaches to Digital Assets

This paper examines the critical tension between fostering innovation in cryptocurrency markets and implementing adequate risk management regulations. Through analysis of regulatory frameworks across multiple jurisdictions, this study identifies the core challenges facing policymakers: market volatility, consumer protection, financial crime prevention, and systemic risk management. The research reveals that regulatory approaches exist along a spectrum from innovation-prioritizing to risk-averse, with successful frameworks demonstrating adaptability, proportionality, and technological competence. This paper argues that principles-based regulation, regulatory sandboxes, and international coordination represent promising approaches that balance the dual imperatives of innovation and risk management. The findings contribute to ongoing scholarly discussions on optimal cryptocurrency governance and provide a theoretical foundation for developing balanced regulatory frameworks that can adapt to this rapidly evolving technological landscape.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-05-21
DOI
https://doi.org/10.5281/zenodo.15559948
Primary Topic
Blockchain Technology Applications and Security
Type
article
Field-Weighted Citation Impact
0.00
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article

Regulating Cryptocurrencies: Between Innovation and Risk Management -An Academic Analysis of Regulatory Approaches to Digital Assets

Zenodo (CERN European Organization for Nuclear Research)
Blockchain Technology Applications and Security
article

Regulating Cryptocurrencies: Between Innovation and Risk Management -An Academic Analysis of Regulatory Approaches to Digital Assets

article en

Abstract

This paper examines the critical tension between fostering innovation in cryptocurrency markets and implementing adequate risk management regulations. Through analysis of regulatory frameworks across multiple jurisdictions, this study identifies the core challenges facing policymakers: market volatility, consumer protection, financial crime prevention, and systemic risk management. The research reveals that regulatory approaches exist along a spectrum from innovation-prioritizing to risk-averse, with successful frameworks demonstrating adaptability, proportionality, and technological competence. This paper argues that principles-based regulation, regulatory sandboxes, and international coordination represent promising approaches that balance the dual imperatives of innovation and risk management. The findings contribute to ongoing scholarly discussions on optimal cryptocurrency governance and provide a theoretical foundation for developing balanced regulatory frameworks that can adapt to this rapidly evolving technological landscape.

Zenodo (CERN European Organization for Nuclear Research)
Vels University (IN)
Industry, innovation and infrastructure
Openalex Percentile: Top 41%
Blockchain Technology Applications and Security
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Regulating Cryptocurrencies: Between Innovation and Risk Management -An Academic Analysis of Regulatory Approaches to Digital Assets · Zenodo (CERN European Organization for Nuclear Research) (2025) | TGRS Research Map | TGRS