Should Crypto Exchanges Be Allowed to Become Banks?
“Allowing crypto exchanges to become banks could lead to significant systemic risks. The volatility of cryptocurrencies undermines traditional banking stability, evidenced by the numerous collapses of crypto firms like FTX. Once integrated, these exchanges may collapse more rapidly than banks, creating chaos in the banking sector. Strict regulations can only do so much and often lag behind the fast-paced crypto market, making outright bans a safer route.”