Banks don't care what you borrow money for and they don't care whether you can repay it. The only thing they care about is whether you have enough collateral for the loan you want, nothing more.  So we can borrow money to trade or do whatever we want with that money.

But indeed, borrowing money is a risk that needs to be carefully considered, let alone borrowing money to participate in trading in a volatile and unpredictable market like crypto. This is a really bad idea, if anyone asks me.