Enhancing consumer protection in cryptocurrency transactions is a critical challenge due to the decentralized and opaque nature of the cryptocurrency market. This review explores legal frameworks and mechanisms aimed at safeguarding consumers, focusing on key issues, challenges, and recommendations for improvement. Consumer protection is essential due to the prevalence of fraud, hacking, and market manipulation. The lack of regulatory oversight and the pseudonymous nature of transactions make it difficult for consumers to seek recourse in cases of fraud or misconduct. Legal frameworks have been developed at both national and international levels. National regulations, such as requiring exchanges to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations, aim to prevent fraud and illegal activities. Internationally, organizations like the Financial Action Task Force (FATF) have issued guidelines to combat money laundering and terrorist financing in the cryptocurrency sector. These guidelines recommend AML and KYC measures for exchanges and wallet providers. While these recommendations are a step in the right direction, implementation remains a challenge, particularly in countries with limited regulatory capacity or political will. Recommendations include increased collaboration between regulators and industry stakeholders, the development of international standards for consumer protection, and the establishment of a regulatory framework that balances innovation with investor protection. Consumer education and awareness campaigns are also crucial. The cryptocurrency market has experienced exponential growth, driven by digital assets and blockchain technology. Consumer protection is critical due to the decentralized nature and risks associated with digital assets. Unlike traditional financial systems, cryptocurrencies lack a central authority, making consumers vulnerable to fraud, theft, and malicious activities. Ensuring consumer protection is essential to maintain trust and confidence in the market. Legal frameworks and mechanisms aim to mitigate risks and improve consumer confidence. National regulations and international guidelines play a crucial role in enhancing consumer protection. Compliance with these regulations helps protect consumers from fraud, promote transparency, and maintain the integrity of the financial system. Challenges include the lack of regulatory oversight, the pseudonymous nature of transactions, and jurisdictional issues. Addressing these challenges requires coordinated efforts among regulators, law enforcement, and industry stakeholders. Regulatory frameworks need to provide clarity and guidance on consumer protection issues. Efforts to enhance transparency, improve consumer education, and promote responsible business practices can mitigate risks. Many consumers lack understanding of cryptocurrencies and their risks, making them susceptible to scams. Educating consumers about risks and best practices is essential. Cryptocurrency transactions are irreversible, making it challenging for consumers to seek recourse in cases of fraud. Providing mechanisms for dispute resolution is essential. The complexity of cryptocurrencies can make it difficult for consumers to make informed decisions. Simplifying the technology and providing user-friendly interfaces can improve consumer protection. The market is susceptible to manipulation and insider trading, which can harm consumers. Regulators need to detect and prevent such activities. Unlike traditional systems, the cryptocurrency market lacks redress mechanisms. Addressing these challenges requires a multi-faceted approach involving regulatory intervention, consumer education, technological innovation, and industry cooperation. Current initiatives include collaboration with industry stakeholders, implementing AEnhancing consumer protection in cryptocurrency transactions is a critical challenge due to the decentralized and opaque nature of the cryptocurrency market. This review explores legal frameworks and mechanisms aimed at safeguarding consumers, focusing on key issues, challenges, and recommendations for improvement. Consumer protection is essential due to the prevalence of fraud, hacking, and market manipulation. The lack of regulatory oversight and the pseudonymous nature of transactions make it difficult for consumers to seek recourse in cases of fraud or misconduct. Legal frameworks have been developed at both national and international levels. National regulations, such as requiring exchanges to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations, aim to prevent fraud and illegal activities. Internationally, organizations like the Financial Action Task Force (FATF) have issued guidelines to combat money laundering and terrorist financing in the cryptocurrency sector. These guidelines recommend AML and KYC measures for exchanges and wallet providers. While these recommendations are a step in the right direction, implementation remains a challenge, particularly in countries with limited regulatory capacity or political will. Recommendations include increased collaboration between regulators and industry stakeholders, the development of international standards for consumer protection, and the establishment of a regulatory framework that balances innovation with investor protection. Consumer education and awareness campaigns are also crucial. The cryptocurrency market has experienced exponential growth, driven by digital assets and blockchain technology. Consumer protection is critical due to the decentralized nature and risks associated with digital assets. Unlike traditional financial systems, cryptocurrencies lack a central authority, making consumers vulnerable to fraud, theft, and malicious activities. Ensuring consumer protection is essential to maintain trust and confidence in the market. Legal frameworks and mechanisms aim to mitigate risks and improve consumer confidence. National regulations and international guidelines play a crucial role in enhancing consumer protection. Compliance with these regulations helps protect consumers from fraud, promote transparency, and maintain the integrity of the financial system. Challenges include the lack of regulatory oversight, the pseudonymous nature of transactions, and jurisdictional issues. Addressing these challenges requires coordinated efforts among regulators, law enforcement, and industry stakeholders. Regulatory frameworks need to provide clarity and guidance on consumer protection issues. Efforts to enhance transparency, improve consumer education, and promote responsible business practices can mitigate risks. Many consumers lack understanding of cryptocurrencies and their risks, making them susceptible to scams. Educating consumers about risks and best practices is essential. Cryptocurrency transactions are irreversible, making it challenging for consumers to seek recourse in cases of fraud. Providing mechanisms for dispute resolution is essential. The complexity of cryptocurrencies can make it difficult for consumers to make informed decisions. Simplifying the technology and providing user-friendly interfaces can improve consumer protection. The market is susceptible to manipulation and insider trading, which can harm consumers. Regulators need to detect and prevent such activities. Unlike traditional systems, the cryptocurrency market lacks redress mechanisms. Addressing these challenges requires a multi-faceted approach involving regulatory intervention, consumer education, technological innovation, and industry cooperation. Current initiatives include collaboration with industry stakeholders, implementing A