BIS Warns Crypto Firms Are Acting Like Banks Without Regulatory Oversight
The Bank for International Settlements (BIS) has warned that major cryptocurrency platforms are functioning like banks but without equivalent regulatory oversight, creating shadow banking risks. The report highlights the lack of prudential rules for crypto firms, which manage deposit-like funds and engage in activities such as margin lending and derivatives trading, increasing systemic risk. The BIS calls for stronger regulation similar to that applied to traditional banks.
Topics: BIS Report Cryptocurrency Financial Stability Regulation Shadow Banking