There are various reasons and risks from Cryptocurrency including:
1. As in the form of digital assets, it is easily misused for financial system crimes such as money laundering.
3. Crypto assets have the potential for financial crime (fraud), security violations and operating failures.
these two are the same. and are wrong. it is much harder to use cryptocurrency as a means for illegal activities because of lack of adoption and also lack of anonymity for bitcoin and most others. not to mention volatility that people always ignore when it suites them.
2. The absence of a clear system, makes cryptocurrency vulnerable to malfunctions that ultimately harm users.
what do you mean by "clear system"?
For this reason Cryptocurrency cannot be legally accepted and even banned in some countries.
not at all. so far majority of countries have nothing against bitcoin. and those that have never had these reasons for their behavior. they always do it because they can not control a decentralized currency and/or tax it!
p.s. regulations aren't going to solve anything.