BIS Warns: Cryptocurrency Exchanges Are Evolving Into 'Shadow Banks'

PANews reported on April 23 that the Bank for International Settlements (BIS) released a research paper stating that cryptocurrency exchanges are offering banking-like lending services through products such as "wealth management" and "yield generation." However, these services lack deposit insurance and regulatory safeguards, effectively creating "shadow banking." The report highlights that such products pool user assets into high-risk activities, leaving users with unsecured claims on their assets and directly exposed to the platform's solvency risk. The report also references the collapse cases of Celsius Network and FTX, as well as the flash crash event in October 2025, emphasizing that high leverage, opacity, and the absence of protective mechanisms could trigger systemic risks.