This all seems like less a problem of crypto as such, and more that exchanges are making a virtual fractional reserve currency by leveraging customer deposits for loans/investments.
ie it's a 'banking' problem, specifically a 'fractional reserve banking' problem, not a crypto problem.
This is exactly why fractional reserve banking is heavily regulated.
ie it's a 'banking' problem, specifically a 'fractional reserve banking' problem, not a crypto problem.
This is exactly why fractional reserve banking is heavily regulated.