Despite their enormous potential, lawmakers and regulators are cautious when it comes to
cryptocurrencies. One reason is that they are commonly used as a way to generate and
transfer large sums in the ‘grey zone’ of the internet, thus avoiding taxation. So, to avoid
complicated legal issues, authorities are refusing to support cryptocurrencies.
The knock on effect of this is to make investors cautious of entering this market because of
concerns over client due diligence, anti-money laundering legislation and other issues
connected with the pseudonymous nature of cryptocurrencies.
1.2.2 Isolation from traditional banking
Another key issue is that cryptocurrency exchanges are only beginning to discover the best
practice needed to keep their trading infrastructure secure from potential malicious activities.
As a result, in many exchanges a high degree of technical security breaches are still possible,
as well as a lack of legal protection of the assets involved. This is one of the main reasons
why ordinary financial institutions are avoiding blockchain based markets.
So what are the results? Due to the reasons mentioned above, traditional banking institutions
don’t accept cryptocurrencies as an asset class, which means they remain unable to provide
vital financial services to half of the world’s population.
1.2.3 Trading fees
The affect of the current impasse is that sizeable fees remain applicable to both parties in
cryptocurrency exchange markets. This makes trading costly when it reaches a certain
threshold.
At TOKIA, we believe that a blockchain based, well automated exchange should have low
costs and be affordable to all.
Once developed, the whole infrastructure is always there. Of course, updates and new
functions are vital, but the most important factor is the ability to provide a complete set of
services. This means the cost of these individual functions needs to remain low

x

Hi!
I'm Neil!

Would you like to get a custom essay? How about receiving a customized one?

Check it out