Japan’s Evolving Crypto Landscape – OneSafe Blog
What risks arise from classifying cryptocurrencies as financial products?
The classification of cryptocurrencies as financial products carries serious risks, particularly related to market volatility and the faith of investors. Cryptocurrencies are notorious for their volatile nature, which often exceeds that of standard financial assets. This volatility stems from their lack of inherent value and absence of a dependable authority, leading to unpredictable price shifts driven by speculation and market emotions.
When cryptocurrencies become classified as financial products, this volatility is woven into the fabric of the larger financial system. Investors participating in these markets might suffer real losses, especially when liquidity…
