The US Federal Deposit Insurance Corporation (FDIC) has issued a cease and desist letter to OKCoin, warning the exchange of misleading statements about its insurance status.
on June 15th letterand the FDIC allege that the exchange and its senior executives have made false representations stating or implying that certain cryptocurrency-related products are insured by the FDIC.
The agency has ordered exchanges to remove these claims from their websites, social media accounts, marketing materials, mobile apps and other customer-facing publications within 15 business days and to submit written confirmation of compliance.
FDIC Deposit Insurance protects customers by indemnifying deposits in the event of an FDIC-insured bank failure.Federal agencies may up to $250,000 Register with a registered bank to provide a safety net in case of bank failure. However, depositing digital assets is not covered.
FDIC Cites Examples of Misstatements
The agency cited three misleading statements made by OKCoin regarding insurance status. These included blog post ads claiming the exchange was licensed across the United States and that its accounts had FDIC insurance.
Another example cited by regulators includes the exchange’s statement that the Provenance Blockchain and its HASH utility token (available from OKCoin) have received regulatory approval from the SEC, OCC, FED and FDIC. rice field.
In a third example, OKCoin’s Chief Marketing Officer tweeted that OKCoin offers FDIC insurance for USD deposits.
According to the FDIC, these statements contain false and misleading representations regarding FDIC Deposit Insurance and may mislead customers.
“OKCoin is not FDIC insured, and the FDIC does not insure non-deposit products. In addition, the FDIC does not endorse or approve any particular blockchain.”
As of this writing, OKCoin has yet to respond of crypto slate Request for comments.
In 2022, the FDIC will issue a similar notice to FTX.US, voyager digital.
An article about the FDIC ordering OKCoin to fix misleading insurance claims first appeared on CryptoSlate.
