EU regulatory framework on cryptocurrency and cybercrime

Mičić Srđan (Federalna uprava policije, Sarajevo, B i H), srdjan.micic.fup@gmail.com
Savić Božić Dijana (Fakultet organizacionih studija, Beograd), dinabozic@gmail.com
Ateljević Milutin (Pravni fakultet Bijeljina, B i H), mateljevic@sinergija.edu.ba

This paper analyses the European Union (EU) regulatory framework for cryptocurrencies and measures to combat cybercrime related to digital currencies. With the increasing use of cryptocurrencies as a means of payment and their attractiveness for criminal activities, such as money laundering and ransomware attacks, the EU faces the challenge of establishing effective regulation that protects consumers and maintains market stability. The paper includes an analysis of key regulatory acts in the areas of Markets in Crypto-Assets (MiCA), Know Your Customer (KYC), and Anti-Money Laundering (AML), as well as standards aimed at improving transparency in the financial sector. It also analyses mechanisms such as digital forensics and analytics of digitally linked databases (so-called “blockchain analytics”) used to track transactions and identify criminal patterns. In addition to analysing existing measures, the paper highlights key challenges, including anonymity and decentralisation of cryptocurrencies. It suggests directions for future regulatory developments that would enable the EU to prevent cybercrime more effectively while encouraging innovation. From the analysis, the authors conclude that continuous regulatory improvement and global cooperation are key elements in the fight against cybercrime in the cryptocurrency sector.

Keywords: Cybercrime, cryptocurrencies, EU, legal regulation