10 months ago
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Request to withdraw misleading statements about deposit protection
On the 15th, the US Federal Deposit Insurance Corporation (FDIC) submitted a notice to OKCoin USA, the US version of the crypto asset (virtual currency) exchange OKCoin. It is a request for correction for making misleading statements that customers’ accounts are protected by the FDIC.
I pointed out the violation and ordered that the corresponding description be deleted. He also said legal action could be taken for violations of U.S. banking laws if not removed immediately.
According to the FDIC, OKCoin made false representations on its website and social media about FDIC insurance and other matters.
First, as one of the “10 Reasons You Should Use OKCoin,” he said, “It is licensed throughout the United States and OKCoin accounts are insured by the FDIC.” It also explained that “OKCoin covers all USD deposits with FDIC insurance.”
It also advertised that one blockchain accessible through OKCoin has received regulatory approval from the FDIC and others. Also, OKCoin’s chief marketing officer said on social media, “For US residents, there is FDIC compensation for US dollar deposits.”
The FDIC points out that such statements mislead people into thinking that “OKCoin itself is covered by FDIC insurance,” or that “assets deposited in OKCoin are covered by FDIC insurance.”
He continued, implying that the insurance applies to products other than deposits or that the FDIC endorses or approves certain blockchains, which is not the case.
In fact, OKCoin itself is not insured by the FDIC, and the FDIC does not guarantee products other than deposits, such as cryptocurrencies.
U.S. financial institutions, including banks, are required to participate in the FDIC’s deposit insurance program, which is intended to protect deposits in the event of a financial institution’s insolvency.
What is FDIC?
Abbreviation for “Federal Deposit Insurance Corporation”. Refers to an independent US institution that provides deposit insurance services, etc. to protect deposits at insured banks. It also oversees financial institutions to ensure the stability of the financial system, maintain safety and soundness, and protect consumers. .
Cryptocurrency Glossary
The FDIC requested OKCoin to immediately remove any misleading statements, statements, or citations as described above.
We will ask you to provide the FDIC with confirmation that you have complied with the request within 15 business days of this notice. We are asking you to detail all the problematic statements that OKCoin posted and the measures taken in response.
It added that if there is no response, it could take legal action.
Past examples
The FDIC has issued similar notices to cryptocurrency companies in the past.
By 2022, there will be five companies, including “FTX.US,” the US subsidiary of the now-bankrupt virtual currency exchange FTX, “Cryptonews.com,” “Cryptosec.info,” “SmartAsset.com,” and “FDICCrypto.com.” I asked him to withdraw his erroneous explanation.
The Federal Deposit Insurance Act prohibits any representation of FDIC insurance coverage for non-insured products or any intentionally misleading description of deposit insurance coverage. is.
connection: U.S. FDIC issues a suspension notice regarding the mention of deposit insurance to five companies, including the virtual currency exchange FTX.US
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