The cryptocurrency sector is still being viewed as risky by most of the governments, regulators, and financial institutions from across the whole world. A new report published by the Royal United Service Institute (RUSI) reveals that the majority of them still have concerns about the cryptocurrency industry as they believe that digital currencies are used for illegal purposes. A recently released Global Survey by the Association of Certified Anti-Money Laundering Specialists (ACAMS) also reported the same findings.
Cryptocurrency Risk & Compliance Survey
Royal United Service Institute (RUSI), a British defense and security think tank, has published a report called Cryptocurrency Risk & Compliance Survey which outlines the point of view of governments, financial institutions, and regulators from across the entire world regarding the cryptocurrency ecosystem. The report focused on finding out people’s views about the regulatory status of the cryptocurrency sector.
Financial institutions, regulators, and governments were asked about their perceptions about cryptocurrencies. In a response to this question, the majority of them said that they still believe cryptocurrency is associated with illegal activities and therefore it is still risky.
When the respondents were asked whether they think cryptocurrencies can replace cash or not, 69 percent of the total respondents said that the digital currency sector is still too volatile and therefore, cryptocurrencies cannot replace cash at the moment.
Furthermore, governments and financial institutions suggested that there is a critical need for the Financial Action Task Force (FATF) like international organizations to step into the cryptocurrency space and develop a proper regulatory framework for crypto entities as self-regulation won’t do the job and they are not sufficient enough to make the regulatory status of the industry clear and better.
The majority of the respondents think that cryptocurrency is used as a means of illegal activities by terrorists and other criminals.
Recently, the Association of Certified Anti-Money Laundering Specialists (ACAMS) issued a Global Survey which illustrated the same point saying that cryptocurrencies are viewed as risky by sixty percent of the financial institutions from across the whole world. ACAMS’ global survey basically presented global insight into the industry of digital currencies. According to that survey, even some in the cryptocurrency industry also have some concerns about it.