Cryptocurrencies and Their Security Impact: "A Legal and Regulatory Study"

Abstract

This study examines cryptocurrencies as a major manifestation of digital transformation in contemporary financial transactions, analyzing their security implications in light of Sharia principles and regulatory frameworks In the kingdom of Saudi Arabia. It aims to explore the relationship between the technical characteristics of cryptocurrencies, particularly decentralization, levels of anonymity, and cross-border transferability, and the rising risks of financial crimes such as money laundering, fraud, and illicit financing. The research adopts a descriptive-analytical and comparative approach to assess international and national regulatory positions, as well as contemporary juristic perspectives on the permissibility of cryptocurrency in view of the objectives of Islamic law, especially the preservation of wealth and the prevention of harm and The study concludes that the absence of a unified regulatory framework and the disparity in oversight mechanisms complicate enforcement and control efforts, underscoring the need for an integrated approach that combines security, legal, and Sharia-based governance to balance the benefits of modern financial technologies with the protection of financial and societal stability.