BIS warns crypto exchanges acting as "shadow banks," raising systemic risk concerns

BANKING | Crypto Exchanges Are Becoming ‘Shadow Banks’ Without Comparable Safeguards, Says Bank for International Settlements

The Bank for International Settlements (BIS) has warned that cryptocurrency exchanges are increasingly operating like “shadow banks,” offering services that resemble traditional banking but without comparable safeguards, according to a recent report. The BIS said many crypto exchanges now provide lending and yield-generating products that function similarly to bank deposits, yet lack protections such as deposit insurance and prudential oversight…

BIS warns crypto exchanges acting as "shadow banks," raising systemic risk concerns

Increased regulatory scrutiny on crypto exchanges could reshape financial markets, impacting investor confidence and prompting policy shifts. The post BIS warns crypto exchanges acting as “shadow banks,” raising systemic risk concerns appeared first on Crypto Briefing.