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.
2. The absence of a clear system, makes cryptocurrency vulnerable to malfunctions that ultimately harm users.
Isn't it ironic that fiat currency has a clear system with easily understandable laws and regulations yet it still is a vehicle for money laundering and fraud? You can't simply bat an eye on bitcoin by ignoring the facts that is also present in fiat.
3. Crypto assets have the potential for financial crime (fraud), security violations and operating failures.
So does fiat ucrrency, but we aren't pinning it down so hard are we?
For this reason Cryptocurrency cannot be legally accepted and even banned in some countries. All definitely have strong and wise reasons such for the safety and comfort of the user in the country. Therefore, I think it is time for stakeholders in various countries, especially in countries whereas crypto-capitalexchanges trading ecosystems is high, must think about creating and compiling clear regulations related to cryptocurrency to prevent future potential problems. Because we know Cryptocurrency has become an unavoidable necessity and Crypto is not for us to avoid but must be seen as a potential for benefit and global progress.
Besides of the regulation of Cryptocurrency itself, the main problem is to prevent and avoid irresponsible individuals who have the potential to do other bitcoin or crypto washing, or theft of Cryptocurrency.
I question my self that do we can be free or stay away from fraud?
Even though bitcoin has these sort of weakness and vulnerability (well fiat currency also has these), it certainly proved its place in the financial world since people and companies still trusted it by investing and buying it. Money can never be freed from fraud as this ignites the greed from people. Even with a clearly devised system, fraud will never be eliminated.