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These Challenges Affect Institutional Crypto Adoption Strategies (Survey)
A recent survey conducted by P2P.org has unveiled the challenges faced by institutional investors in adopting crypto assets and products. The findings of the survey have exposed the difficulties encountered by institutions in integrating these digital currencies into their operations.
According to the report, more than a third of respondents, or 33.4%, indicated that the biggest challenge they face is integrating new crypto yield products with their risk tolerance. This suggests that institutions are hesitant to adopt certain crypto assets due to their risk profile.
Another significant challenge identified by the survey is regulatory compliance. 13.3% of participants mentioned that regulatory requirements are hindering their ability to incorporate new products into their offerings. Institutions seem to be grappling with the complexities of complying with various regulations across different jurisdictions, which may lead to delays in adopting crypto assets.
The results also showed that some institutions (6.67%) struggle to find a suitable strategy for allocating their crypto assets. The study highlights the complexity and uncertainty surrounding investment decisions in this sector.
Furthermore, integrating multiple yield solutions at once has been identified as an obstacle by 6.67% of respondents. Institutions may be hesitant to diversify their investments due to the risks associated with various crypto products.
It is worth noting that a significant number (33.29%) of participants mentioned other challenges not outlined in the report. This could indicate that there are more difficulties that institutions face in adopting crypto assets.
Risk was a recurring theme throughout the survey, as it was discussed across multiple levels, including technology, operations, and regulation. In terms of technology, respondents expressed concerns about smart contracts posing risks to their organization’s security and reliability.
When it comes to operations, institutions explained how certain blockchain mechanics could impact the movement of funds across industries. For instance, withdrawing funds from staked tokens may render them unavailable for a period, limiting the ability to redeploy capital to other business areas.
Regarding regulation, participants indicated that one of their biggest challenges is the integration of new products with regulatory guidelines for their respective business regions. It was noted in an interview that failing to properly assess the regulatory layer can affect the resources allocated to a new product initiative, which may later be deemed unacceptable by regulatory authorities.
The survey highlights the limitations imposed on institutions due to regulatory requirements and their inability to innovate freely.
Source: cryptopotato.com
