BIS Warns Large Crypto Platforms Need Bank-Like Prudential Rules

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A 38-page Financial Stability Institute paper from the BIS said the largest crypto platforms now operate like banks and prime brokers without comparable prudential rules. The paper said yield and earn programs create deposit-like liabilities by transferring ownership of customer assets to the provider. Researchers also found many large providers still do not publish financial statements or disclose how customer assets are deployed.

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