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 the protective measures found in traditional finance. The report warned, "Stablecoin interest products and DeFi 'earn' services are essentially close to an unsecured loan structure. 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."
