Coindesk reported that the Bank for International Settlements (BIS) warned in a report that cryptocurrency exchanges are offering bank-like services such as lending and interest products without having traditional financial-level safeguards. The report warned, "Stablecoin interest products and DeFi 'earn' services are essentially close to unsecured loan structures. While they appear to be high-yield products, they are actually credit exposures to under-regulated shadow finance, and there are insufficient mechanisms to ensure stability while utilizing customer funds for high-risk investments. If a problem occurs with the platform, investors may bear the losses directly."
