Can children sleep in an unfinished basement?

If an unfinished basement is to be used as a sleeping area it needs to be:

* dry * ventilated * warm * have both natural light and artificial light fittings that work * have a safe egress in case of fire etc. * be electrically safe (no incomplete cabling or exposed wires) * have no tripping or falling hazards * have no exposed hazardous materials (including some insulation) * it may also need to have smoke alarms etc.