BIS warns crypto exchanges are acting like shadow banks without deposit protection

The Bank for International Settlements said crypto exchanges are increasingly offering bank-like services without the oversight and deposit protection of traditional finance. The report said lending and Earn products resemble unsecured loans because user assets may be used for lending, trading, or market making while users hold only a claim on the platform. The report cited Celsius Network, FTX, and about $19 billion in forced liquidations during the October 2025 flash crash as examples of structural and leverage risk.

CEL-1,89%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin