ANALYSIS OF THE CRYPTOCURRENCY INDUSTRY BASED ON INTERNATIONAL EXPERIENCE AND THE PRINCIPLES OF ITS OPERATION

Abstract

This study analyzes the cryptocurrency industry based on international experience and examines the fundamental principles of its operation. Over the past decade, the cryptocurrency industry has become an important part of the global financial system and has contributed to the rapid development of the digital economy. The industry operates primarily on blockchain technology, which ensures decentralized data storage, transparency, security, and reliability of financial transactions without the need for central governing institutions. The paper examines international regulatory approaches to the crypto industry in countries such as the United States, the European Union, Japan, China, and South Korea, highlighting differences in regulatory frameworks, investor protection mechanisms, and market control policies. The study also explains the main operating principles of the crypto industry, including blockchain technology, consensus mechanisms such as Proof of Work and Proof of Stake, crypto wallets, exchanges, and smart contracts. In addition, the research identifies major risks associated with the crypto industry, including price volatility, cybersecurity threats, legal uncertainty, and illegal transactions. The study concludes that balanced regulation, technological infrastructure development, and investor protection are essential for the sustainable development of the cryptocurrency industry and its integration into the global financial system