BIS Warns: Crypto Exchanges Are Evolving Into "Shadow Banks," Leaving Users Exposed to Unprotected Risks

Odaily星球日报讯 The Bank for International Settlements (BIS) has released a report stating that cryptocurrency exchanges are gradually offering bank-like services, such as lending and yield products (Earn), but lack the regulatory oversight and deposit protections found in the traditional financial system, posing systemic risks.

The report states that these high-yield products are essentially closer to "unsecured loans." User assets are often utilized by platforms for high-risk activities like lending, trading, or market making, while users only hold a claim against the platform. If the platform encounters problems, users are directly exposed to solvency risk.

The BIS also noted that top crypto platforms have evolved from simple exchanges into "multi-functional intermediaries," integrating the functions of banks, brokerages, and exchanges, yet suffer from insufficient transparency and risk isolation mechanisms. The collapses of Celsius Network and FTX serve as classic examples of this structural risk. Furthermore, the report mentioned a flash crash in the crypto market in October 2025 that triggered approximately $19 billion in forced liquidations, highlighting the risk of cascading effects under high leverage and opaque structures. (CoinDesk)