The Bank for International Settlements (BIS) has issued a warning that the largest cryptocurrency platforms are operating like banks and prime brokers without being subject to equivalent regulatory oversight. A new report from the Financial Stability Institute (FSI) highlights that these platforms, termed "multifunction cryptoasset intermediaries," engage in activities such as taking deposit-like funds and offering yield programs, which create risks akin to shadow banking. The report calls for these firms to adhere to capital, liquidity, governance, and stress testing rules similar to those imposed on regulated banks. The 38-page report underscores the absence of deposit insurance and central bank liquidity lines for crypto holders, pointing to the 2022 collapses of Celsius Network and FTX, as well as the October 2025 flash crash, as indicators of the sector's vulnerabilities. The BIS emphasizes the need for robust prudential frameworks to manage the rapid evolution of crypto service providers into financial intermediaries. The report also highlights transparency issues, noting that many large providers do not disclose financial statements or asset deployment strategies, and calls for enhanced cross-border regulatory cooperation to address these gaps.