From Protection to Participation: Reimagining Children's Rights in the Age of AI, Data Exploitation, and Transnational Cybercrime Author Children’s Rights, Artificial Intelligence (AI), Digital Childhood, Data Exploitation, Online Child Safety, Transnational Cybercrime, Data Privacy, Algorithmic Manipulation, Corporate Accountability, Digital Citizenship. The digital transformation of childhood has created a fundamental paradox: while online platforms offer unprecedented access to education, creativity, and global connectivity, they simultaneously expose children to systemic risks of exploitation, privacy violations, and algorithmic manipulation. This paper critically examines this "digital childhood dilemma" by analysing the adequacy of existing legal frameworks—from the United Nations Convention on the Rights of the Child (UNCRC) to India's Protection of Children from Sexual Offences (POCSO) Act, the Information Technology Act, 2000, the Digital Personal Data Protection Act (DPDP), 2023, and the European Union's General Data Protection Regulation (GDPR)—in addressing emerging threats such as AI-generated deepfakes, predatory data mining, dark web trafficking, and cross-border cybercrime. Using a doctrinal and comparative legal methodology, the study evaluates the gap between policy rhetoric and enforcement reality, particularly in developing nations like India, where rapid digital penetration outpaces institutional capacity. The findings reveal that current laws are predominantly reactive and punitive, failing to proactively safeguard children's participatory rights or hold technology corporations accountable for design-based harms, such as addictive interfaces, behavioural profiling, and inadequate age-verification systems. The paper proposes a holistic, child-centric framework that integrates legal reform, technological accountability, digital literacy, and international cooperation. It argues that effective protection cannot be achieved through surveillance and restriction alone; rather, it requires empowering children as digital citizens while imposing binding obligations on states and corporations to ensure safety-by-design, algorithmic transparency, and meaningful parental consent. The study concludes by advocating for a balanced regulatory approach that reconciles children's rights to protection, privacy, and participation in an increasingly AI-driven and commercially exploitative digital ecosystem, drawing on best practices from the UK's Age Appropriate Design Code, the EU's GDPR, and emerging jurisprudence in Indian courts. International Journal of Law, Human Rights and Social Sciences Research 2026-08-10 Text application/pdf 10.65919/ijlhssr.2026.v2i3002 en