May 2
More than a marketplace: Crypto platforms as financial intermediaries
PIONEER EDGE NEWS SERVICE
➤ Crypto asset service providers (CASPs) are evolving beyond marketplaces to function as financial intermediaries, similar to banks, by offering 'earn programmes' where they lend customer deposits. ➤ The Bank for International Settlements (BIS) highlights that current regulations have not kept pace with these evolving functions, posing risks to consumer protection. ➤ The BIS paper advocates for a combined entity-based and activity-based regulatory approach for these 'multifunction cryptoasset intermediaries' (MCIs) to ensure stability and consumer safety.