Review and comparison of US, EU, and UK regulations on cyber risk/security of the current Blockchain Technologies - viewpoint from 2023

Petar, Radanliev (2023): Review and comparison of US, EU, and UK regulations on cyber risk/security of the current Blockchain Technologies - viewpoint from 2023.

Abstract

The results of this study show that cybersecurity standards are not designed in close cooperation between the two major western blocks - US and EU. In addition, while the US is still leading in this area, the security standards for cryptocurrencies, internet-of-things, and blockchain technologies have not evolved as fast as the technologies have. The key finding from this study is that although the crypto market has grown into a multi-trillion industry, the crypto market has also lost over 70% since its peak, causing significant financial loss for individuals and cooperation’s. Despite this significant impact to individuals and society, cybersecurity standards and financial governance regulations are still in their infancy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cyber Risk Assessment; Cloud Cybersecurity Standards; Financial Governance, DeFi, NIST; ISO27001; IoT; Blockchain Technologies, Metaverse, Cryptocurrencies.
• Subjects: A - General Economics and Teaching > A3 - Collective Works; F - International Economics > F3 - International Finance; F - International Economics > F3 - International Finance > F38 - International Financial Policy: Financial Transactions Tax; Capital Controls; F - International Economics > F5 - International Relations, National Security, and International Political Economy; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F55 - International Institutional Arrangements; F - International Economics > F6 - Economic Impacts of Globalization; G - Financial Economics > G2 - Financial Institutions and Services; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation

References

[1] J. Srinivas, A. K. Das, and N. Kumar, “Government regulations in cyber security: Framework, standards and recommendations,” Future Generation Computer Systems, vol. 92, pp. 178–188, Mar. 2019, doi: 10.1016/J.FUTURE.2018.09.063. [2] K. de Fine Licht and J. de Fine Licht, “Artificial intelligence, transparency, and public decision-making,” AI & SOCIETY, pp. 1–10, Mar. 2020, doi: 10.1007/s00146-020-00960-w. [3] G. Falco, A. Noriega, and L. Susskind, “Cyber negotiation: a cyber risk management approach to defend urban critical infrastructure from cyberattacks,” Journal of Cyber Policy, vol. 4, no. 1, pp. 90–116, Jan. 2019, doi: 10.1080/23738871.2019.1586969. [4] M. D. Workman, J. A. Luévanos, and B. Mai, “A Study of Cybersecurity Education Using a Present-Test-Practice-Assess Model,” IEEE Transactions on Education, vol. 65, no. 1, pp. 40–45, 2021. [5] K. D. Mitnick and W. L. Simon, The art of deception: Controlling the human element of security. John Wiley & Sons, 2003. [6] G. Watson, A. Mason, and R. Ackroyd, Social engineering penetration testing: executing social engineering pen tests, assessments and defense. Syngress, 2014. [7] A. Smith, M. Papadaki, and S. M. Furnell, “Improving awareness of social engineering attacks,” in Information Assurance and Security Education and Training, Springer, 2013, pp. 249–256. [8] J. Long, No tech hacking: A guide to social engineering, dumpster diving, and shoulder surfing. Syngress, 2011. [9] A. McIlwraith, Information security and employee behaviour: how to reduce risk through employee education, training and awareness. Routledge, 2021. [10] P. Dixit and S. Silakari, “Deep learning algorithms for cybersecurity applications: A technological and status review,” Computer Science Review, vol. 39, p. 100317, 2021. [11] B. Zohuri, M. Moghaddam, and F. Mossavar-Rahmani, “Business Resilience System Integrated Artificial Intelligence System,” International Journal of Theoretical & Computational Physics, vol. 3, pp. 1–7, 2022. [12] D. U. Case, “Analysis of the cyber attack on the Ukrainian power grid,” Electricity Information Sharing and Analysis Center (E-ISAC), vol. 388, pp. 1–29, 2016. [13] V. Schlatt, T. Guggenberger, J. Schmid, and N. Urbach, “Attacking the trust machine: Developing an information systems research agenda for blockchain cybersecurity,” Int J Inf Manage, vol. 68, p. 102470, Feb. 2023, doi: 10.1016/J.IJINFOMGT.2022.102470. [14] S. Mahmood, M. Chadhar, and S. Firmin, “Cybersecurity Challenges in Blockchain Technology: A Scoping Review,” Hum Behav Emerg Technol, vol. 2022, pp. 1–11, Apr. 2022, doi: 10.1155/2022/7384000. [15] V. Wylde et al., “Cybersecurity, Data Privacy and Blockchain: A Review,” SN Computer Science 2022 3:2, vol. 3, no. 2, pp. 1–12, Jan. 2022, doi: 10.1007/S42979-022-01020-4. [16] S. He et al., “Blockchain-based automated and robust cyber security management,” J Parallel Distrib Comput, vol. 163, pp. 62–82, May 2022, doi: 10.1016/J.JPDC.2022.01.002. [17] A. Hazra, A. Alkhayyat, and M. Adhikari, “Blockchain-aided Integrated Edge Framework of Cybersecurity for Internet of Things,” IEEE Consumer Electronics Magazine, 2022, doi: 10.1109/MCE.2022.3141068. [18] Y. I. Ll. Lucio, K. Marceles Villalba, and S. A. Donado, “Adaptive Blockchain Technology for a Cybersecurity Framework in IIoT,” Revista Iberoamericana de Tecnologias del Aprendizaje, vol. 17, no. 2, pp. 178–184, May 2022, doi: 10.1109/RITA.2022.3166857. [19] O. Cheikhrouhou, I. Amdouni, K. Mershad, M. Ammi, and T. N. Gia, “Blockchain for the Cybersecurity of Smart City Applications,” Jun. 2022, Accessed: Mar. 29, 2023. [Online]. Available: https://arxiv.org/abs/2206.02760v1 [20] M. Liu, W. Yeoh, F. Jiang, and K. K. R. Choo, “Blockchain for Cybersecurity: Systematic Literature Review and Classification,” https://doi.org/10.1080/08874417.2021.1995914, vol. 62, no. 6, pp. 1182–1198, 2021, doi: 10.1080/08874417.2021.1995914. [21] A. Deshmukh, N. Sreenath, A. K. Tyagi, and U. V. E. Abhichandan, “Blockchain Enabled Cyber Security: A Comprehensive Survey,” 2022 International Conference on Computer Communication and Informatics, ICCCI 2022, 2022, doi: 10.1109/ICCCI54379.2022.9740843. [22] R. Prakash, V. S. Anoop, and S. Asharaf, “Blockchain technology for cybersecurity: A text mining literature analysis,” International Journal of Information Management Data Insights, vol. 2, no. 2, p. 100112, Nov. 2022, doi: 10.1016/J.JJIMEI.2022.100112. [23] M. in C. R. (MiCA), “Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937 (MiCA),” 2022. [24] NIST, “NIST Version 1.1,” National Institute of Standards and Technology, U.S. Department of Commerce, 2018. https://www.nist.gov/news-events/news/2018/04/nist-releases-version-11-its-popular-cybersecurity-framework [25] NIST, “Cybersecurity Framework,” 2022. https://www.nist.gov/cyberframework/getting-started [26] Advisera, “What is the meaning of ISO 27001?,” 2022. https://advisera.com/27001academy/what-is-iso-27001/ [27] NIST 800-53, “Security and Privacy Controls for Information Systems and Organizations,” 2020. [28] ISO, “ISO/IEC 27001 and related standards Information security management,” 2022. [29] M. Petrov, “Adapted SANS Cybersecurity Policies for NIST Cybersecurity Framework,” 2021. [30] J. E. Catril Opazo, “NIST cybersecurity framework in south america: Argentina, Brazil, Chile, Colombia, And Uruguay,” 2021. [31] M. J. ALDhanhani, “Review of Cyber Security on Oil and Gas Industry in United Arab Emirates: Analysis on the Effectiveness of the National Institute of Standards and Technology’s (NIST) Cybersecurity Framework,” Turkish Journal of Computer and Mathematics Education (TURCOMAT), vol. 12, no. 11, pp. 714–720, 2021. [32] A.-M. Udroiu, M. Dumitrache, and I. Sandu, “Improving the cybersecurity of medical systems by applying the NIST framework,” in 2022 14th International Conference on Electronics, Computers and Artificial Intelligence (ECAI), IEEE, 2022, pp. 1–7. [33] NIST, “NIST Special Publication 800-128,” 2011. [34] NIST, “Block Cipher Techniques,” 2020. https://csrc.nist.gov/Projects/block-cipher-techniques [35] NIST, “Hash Functions,” 2020. https://csrc.nist.gov/Projects/Hash-Functions [36] NIST, “Key Management - Symmetric Block Ciphers, Pair-Wise Key Establishment Schemes,” 2022. [37] NIST, “Post-Quantum Cryptography PQC,” 2022. https://csrc.nist.gov/Projects/post-quantum-cryptography [38] NIST, “Lightweight Cryptography,” 2022. https://csrc.nist.gov/Projects/lightweight-cryptography [39] NIST, “Privacy-Enhancing Cryptography PEC,” 2022. https://csrc.nist.gov/Projects/pec [40] MITRE, “MESSAGETAP,” 2020. [41] T. Kovanen, J. Pöyhönen, and M. Lehto, “Cyber-Threat Analysis in the Remote Pilotage System,” in ECCWS 2021 20th European Conference on Cyber Warfare and Security, Academic Conferences Inter Ltd, 2021, p. 221. [42] Y. Cao, H. Jiang, Y. Deng, J. Wu, P. Zhou, and W. Luo, “Detecting and mitigating ddos attacks in SDN using spatial-temporal graph convolutional network,” IEEE Transactions on Dependable and Secure Computing, 2021. [43] CISCO, “Cisco Firepower Next-Generation Firewall Overview,” 2022. https://www.router-switch.com/cisco-firepower-ngfw.html#:~:text=The Cisco FirepowerTM Next,the network to the endpoint. [44] S. Creese, W. H. Dutton, P. Esteve-González, and R. Shillair, “Cybersecurity capacity-building: cross-national benefits and international divides,” https://doi.org/10.1080/23738871.2021.1979617, vol. 6, no. 2, pp. 214–235, May 2021, doi: 10.1080/23738871.2021.1979617. [45] Y. Hong and S. Furnell, “Understanding cybersecurity behavioral habits: Insights from situational support,” Journal of Information Security and Applications, vol. 57, p. 102710, Mar. 2021, doi: 10.1016/J.JISA.2020.102710. [46] W. Kitler, Cybersecurity in Poland: The Cybersecurity Strategy of the Republic of Poland. 2021. doi: 10.1007/978-3-030-78551-2. [47] F. R. Moreira, D. A. Da Silva Filho, G. D. A. Nze, R. T. De Sousa Junior, and R. R. Nunes, “Evaluating the Performance of NIST’s Framework Cybersecurity Controls Through a Constructivist Multicriteria Methodology,” IEEE Access, 2021, doi: 10.1109/ACCESS.2021.3113178. [48] R. T. Williams and A. Capstone, “Banking and Cybersecurity Governance,” Utica College, Utica, New York, 2021. [49] A. Khan and M. Malaika, “Central Bank Risk Management, Fintech, and Cybersecurity - Mr. Ashraf Khan, Majid Malaika - Google Books,” 2021. [50] P. Cheng, “Decoding the rise of Central Bank Digital Currency in China: designs, problems, and prospects,” Journal of Banking Regulation 2022, pp. 1–15, Feb. 2022, doi: 10.1057/S41261-022-00193-5. [51] T. Hansen and K. Delak, “Security Considerations for a Central Bank Digital Currency,” FEDS Notes, vol. 2022, no. 2970, Feb. 2022, doi: 10.17016/2380-7172.2970. [52] The Federal Reserve, “Central Bank Digital Currency (CBDC),” 2022. [53] The Federal Reserve, “Research & Publications - Central Bank Digital Currency (CBDC),” 2022. https://www.federalreserve.gov/cbdc-research-and-publications.htm [54] ENISA, “EUCS – Cloud Services Scheme,” 2020. [55] ENISA, “Cloud Computing Risk Assessment,” 2009. [56] NIST, “Product Integration using NVD CVSS Calculators,” 2022. [57] CVE, “Current CVSS Score Distribution For All Vulnerabilities,” 2022. [58] N. Stephenson, Snow crash: A novel. Spectra, 2003. [59] Coinmarketcap, “Cryptocurrency Prices by Market Cap,” 2022. https://coinmarketcap.com/ [60] Coingecko, “Cryptocurrency Prices by Market Cap,” 2022. https://www.coingecko.com/ [61] E. Howcroft, “Investors pull $1.6 billion from Binance after CFTC lawsuit | Reuters,” Reuters, Mar. 2023. https://www.reuters.com/legal/investors-pull-16-billion-binance-after-cftc-lawsuit-2023-03-29/ (accessed Mar. 29, 2023).