Risks in crypto-banking

When crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treated like a bank.When crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treWhen crypto prices collapsed, these firms’ loans went belly up and some were forced to suspend withdrawals. When Celsius filed for Chapter 11 bankruptcy, their depositors learned their accounts were worthless, having been gambled away by the company.

These firms deliberately obscured this reality to their clients. In Voyager’s case, they outright lied about being FDIC-insured. Snake-oil salesmen from these companies convinced their customers that regulated banks were the problem, only to learn exactly why those regulations exist in the first place.

To make matters worse, the lack of transparency in crypto markets makes it quite easy for executives and developers to dump their positions long before they suspend withdrawals. By the time customers realize their money is gone, those responsible have cashed out with a tidy profit.

The future of decentralized finance
So where do we go from here?

At the micro level, the answers are obvious. Crypto exchanges should be regulated in the same manner as brokers. Client assets must be held separately and securely, with clear rules on risk exposure in the firms’ own trading.

Crypto assets themselves should be clearly designated as securities, and therefore subject to oversight. Exchange platforms should be required to hold sufficient cash in government-issued currency. If this sounds like it violates the ethos of decentralized finance, that’s because it should.

The macro level is trickier. Post-2008, we have demonized the big banks and fetishized technology. Crypto enthusiasts claim Wall Street is only in it for itself, and they are right. But they’ve recreated the same system, only it’s even riskier.

The late arrivals to the crypto party — the ones now holding the bag — are not the wealthy investing class. They are regular people, rightly distrustful of banks and, by extension, our institutions, and are desperately searching for ways to shield themselves from skyrocketing inflation.

Rebuilding that trust takes time and energy. It takes a willingness to deal with the inequities caused by a rising cost of living and an extractive financial system. And, crucially, it takes effective regulation. If it looks like a bank and behaves like a bank, it needs to be treated like a bank.ated like a bank.ated like a bank.ated like a bank.ated like a bank.ated like a bank.ated like a bank.ated like a bank.ated like a bank.ated like a bank.ated like a bank.