Technologies being subject you the same rules.
The reason I can buy drugs, play online poker, request a ransom or just send money to an unknown at the other end of the world with crypto but can't with a bank transfer isn't technical. The only reason is that banks have to comply to regulation while crypto doesn't.
There are a lot of regulatory burden when trying to make a financial service. KYC, anti money laundering, reporting, privacy, data storage etc. There is basically none (that is enforced anyway) with crypto. That's the only reason it got traction. The technology is terrible. It's hard to come up with something more inefficient, expensive and hard to use. The one and only reason it's used for anything is that it evades regulatory burden.
It's literally "let's burn a lot of coal to run our steam powered car because steam powered cars are not subject to traffic laws" kind of situation. Fix and enforce the law and the steam car disappears. The same will happen to cryptocurrency.
There are a lot of regulatory burden when trying to make a financial service. KYC, anti money laundering, reporting, privacy, data storage etc. There is basically none (that is enforced anyway) with crypto. That's the only reason it got traction. The technology is terrible. It's hard to come up with something more inefficient, expensive and hard to use. The one and only reason it's used for anything is that it evades regulatory burden.
It's literally "let's burn a lot of coal to run our steam powered car because steam powered cars are not subject to traffic laws" kind of situation. Fix and enforce the law and the steam car disappears. The same will happen to cryptocurrency.