Crypto Exchanges Clamping Down on Prime Brokers Is Backwards Step for Market Efficiency, Traders Say

Cryptocurrency markets were built for retail customers, first and foremost, and that’s why they differ so dramatically from traditional finance. In mature markets, prime brokers offer institutions the equivalent of a simple bank account, behind which an army of intermediaries safely stores cash and assets and facilitates trades at lightning speed across a range of venues. Prime brokers also provide credit, allowing traders to shuffle and change positions, with everything netted down and settled a day or two later.