Key Takeaways:
The BIS Financial Stability Institute warned in April 2026 that major crypto platforms like Binance and Coinbase now operate more like banks than trading venues. Celsius Network collapsed in 2022 after a USD 1.4 billion depositor run exposed maturity mismatches with no deposit insurance backstop. Only 11 of 28 jurisdictions reviewed by the FSB in 2025 had a finalized regulatory framework addressing financial stability risks from crypto intermediaries. Crypto Earn Accounts Exposed as Uninsured Deposits, BIS Research WarnsThese platforms have expanded well beyond spot trading and custody. They now offer yield-bearing earn accounts, margin lending, derivatives, and token issuance, functions typically separated across different licensed entities in traditional finance.
The collapse of Celsius Network in 2022 illustrated the exposure. Celsius experienced net withdrawals of more than $1.4 billion between May and June of that year. By June 12 the platform froze withdrawals. When it filed for bankruptcy on July 12, its balance sheet showed a billion-dollar deficit. The bankruptcy court confirmed Celsius earn users were general unsecured creditors.
The report reviewed terms and conditions from eight major MCIs between November 2025 and March 2026 and found that most earn products grant the platform full discretion over deposited assets, commingle them with other customer funds, and reserve the right to suspend redemptions without notice.
The FSB’s 2025 thematic review found that only 11 of 28 participating jurisdictions, roughly 39%, had a finalized regulatory framework addressing financial stability. Just two of those covered borrowing and lending by MCIs. Three covered earn products.
Cross-border cooperation remains a core gap. Many large MCIs allocate functions across dozens of jurisdictions through separate legal entities, and formal supervisory information-sharing agreements between regulators remain uncommon.
