Responsible players in the crypto industry look after their customers and protect user funds – just like most traditional financial companies do.
With blockchain still maturing, many falsehoods and misconceptions exist around crypto. On the menu today are a pair of myths surrounding crypto firms and how they operate. Let's dive into the topic and separate fact from fiction! Let’s take a deeper look at these statements and understand why it is patently wrong to paint the entire cryptocurrency industry as dangerous and predatory like this.The background of this myth is easy to understand. In many countries, regulations exist that protect users’ bank deposits up to a certain value. In contrast, since digital assets are still new, crypto-specific regulatory frameworks are yet to be solidified.
The inherent transparency of distributed ledgers means that crypto exchanges and other crypto firms are especially well-positioned to build relationships with their users on the foundation of transparency and trust. For example, Binance maintains and regularly upgrades itsto allow users to verify that their assets are safely stored on the platform and that customer funds are never misused.
Opaque financial firms, both traditional and crypto, can blow up and leave no recourse for users. This is not a problem specific to the crypto industry. However, it is important to recognize that there are transparent and responsible players, both crypto and traditional ones, that work hard to ensure that users are made whole no matter what.
This is an incredibly one-sided view. Granted, people and organizations that promise things that are too good to be true to people who struggle financially exist in crypto , but they do not define the digital asset ecosystem or its relationship with crypto users.