What are the reasons behind the different treatment of crypto by the financial industry?

3 answers

• Dec 16, 2021 · 3 years ago
  The financial industry treats cryptocurrencies differently due to several reasons. Firstly, cryptocurrencies are relatively new and their technology, such as blockchain, is still being understood and regulated. This uncertainty makes it difficult for traditional financial institutions to fully embrace cryptocurrencies. Additionally, the decentralized nature of cryptocurrencies challenges the traditional centralized control of the financial industry. This creates concerns about security, fraud, and money laundering. Lastly, the volatility and speculative nature of cryptocurrencies make them riskier compared to traditional assets, which further contributes to the different treatment by the financial industry.
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• Dec 16, 2021 · 3 years ago
  Well, the financial industry has always been cautious when it comes to new and disruptive technologies. Cryptocurrencies, being a relatively new concept, have faced skepticism and scrutiny from traditional financial institutions. The lack of regulatory frameworks and the potential for illicit activities have raised concerns among regulators and financial institutions. Moreover, the decentralized nature of cryptocurrencies challenges the existing financial systems, which rely on centralized control. All these factors contribute to the different treatment of crypto by the financial industry.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we believe that the different treatment of cryptocurrencies by the financial industry is primarily due to the lack of understanding and familiarity. Cryptocurrencies operate on a decentralized network and utilize blockchain technology, which is still relatively new and complex for many financial institutions. Additionally, the regulatory landscape surrounding cryptocurrencies is constantly evolving, leading to uncertainty and caution. However, as the industry matures and regulations become clearer, we expect to see a more inclusive and integrated approach towards cryptocurrencies from the financial industry.
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