Assessing the impact of cryptocurrency usage on cybersecurity: the European Union experience

Abstract

The economic consequences of cybercrime are often devastating. Cybercrime leads to financial losses, theft of funds, expenses for investigations and mitigating the effects of crimes, rebuilding trust among citizens, and implementing security improvements. It also reduces societal trust and the investment attractiveness of countries and companies. All these factors make the development and study of cybersecurity strategically important. One of the key factors influencing national cybersecurity is the prevalence and use of modern technologies by the population, including cryptocurrencies, and the impact of their usage and regulation on cybersecurity is not obvious. Therefore, researching the impact of cryptocurrency usage on cybersecurity is currently a relevant issue. The purpose of this study is to investigate the impact of cryptocurrency usage on cybersecurity in European Union countries. A regression model has confirmed the statistical significance of the influence on cybersecurity assessment in a country of aspects related to cryptocurrency usage, such as prevalence, legal regulation, user investment skills, and the use of the darknet. The most positive impact on a country's cybersecurity assessment comes from the implementation of legal measures in the regulation of digital assets, demonstrating the effectiveness of legal regulation of digital assets in EU countries. The most negative impact on cybersecurity assessment is the increase in the number of active cryptocurrency users (those who use a mobile app to invest in crypto assets once a week or more). The practical significance of this research lies in its potential to contribute to the future development of digital asset regulation policy in Ukraine, striking a balance between minimizing cybersecurity risks and fostering innovation. Demonstrating the positive impact of European practices in regulating digital assets opens prospects for further research into the effectiveness of specific regulatory measures and the possibility of adapting them to the Ukrainian context.

Keywords

• cyber security
• cybercrime
• cryptocurrencies
• digital assets
• regulation of cryptocurrencies
• regression analysis