Quote from: o48o on January 12, 2024, 08:33:03 PM

Quote from: Airdrop Imperial on January 09, 2024, 11:26:43 PM

Neobanks were created to have a wild-west playing ground again by evading regulations.

From a Neobank, customers can win big or get scammed big.
As usual for a bank, bank always makes profit. But for Neobanks, profits are even bigger because of evading regulation.

Sam Bankman Friend is an example of a Neobank entrepreneur. He created FTX.
What is your opinion?

...

These days crypto exchanges or "neobanks" are obligated to follow same regulations as every company that deals with people's finances. Also profits and losses from neobanks don't happen because of evading regulations. Gains and losses are huge because you can basically trade any volatile token in them. At least in DeXes.

Ironically, much of the volume in developing countries where the use of those exchanges or Neobanks is high, is because of the number of transactions done in stablecoins, instead of tokens or volatile cryptocurrencies. People in those kind of context just want to have access to stable currency which does not easily suffer because of inflation, so they use their exchange accounts like literal bank accounts to save FIAT equivalent tokens.
In those cases, the losses because market fluctuation are only possible if people start to make bad deals on P2P platforms, where the difference between the purchasing and selling price is big.

Also, the Exchanges follow the regulations of the countries where they are based, but they do not follow those in countries where there is a conflict of authority or Power. Venezuela has its own regulation for exchanges and Crypto and neither Binance nor other exchanges follow it, in spite of being the most important custodial platforms used in the country.