There is no end to the Bitcoin exchanges that the regulators set the target. This situation creates a shock effect in the crypto money market. The final target was OKCoin. Let’s look at the details.
Bitcoin exchange on target
The Federal Deposit Insurance Corporation (FDIC) filed a claim today. Accordingly, the Bitcoin exchange demanded that OKCoin stop its misleading claims that it is insured. Under the Federal Deposit Insurance Act, it is illegal to misrepresent uninsured deposits as insured. It’s also clearly illegal to provide false information about coverage. The FDIC wrote a letter to OKCoin CEO Hong Fang. Accordingly, he highlighted three specific instances where the exchange was accused of making false claims. The agency has the authority to issue cease and desist orders for such violations. Also, when we look at Kriptokoin.com, it has the authority to impose civil penalties.
There are interesting details in the FDIC’s request. He emphasizes that OKCoin is not insured under the FDIC and the institution does not provide insurance coverage for non-deposit products. On the other hand, the agency cites OKCoin’s failure to differentiate between US dollar deposits and crypto assets. There are also concerns about FDIC insurance coverage. Accordingly, it expresses its concerns that it creates the impression that it applies to all client funds, including crypto-assets.
What are the examples?
Three examples of “false and misleading statements” were cited by the agency. These include a statement on OKCoin’s website claiming that Provenance Blockchain’s HASH token has received regulatory approval from the SEC, OCC, FED, and FDIC. Additionally, a 2020 post on the company’s website advertises itself as “licensed across the US with FDIC insurance on OKCoin accounts.” Also, a company official’s Twitter post read, “We offer FDIC insurance on USD deposits if you’re in the US.” The FDIC flatly asserts that OKCoin is not insured under the FDIC and the institution does not provide insurance for non-deposit products.
Furthermore, the FDIC stresses that it does not endorse or support any private blockchain. It has also disproved any misunderstandings or misconceptions made by Bitcoin exchange OKCoin. In response to the FDIC’s statements, an OKCoin spokesperson made a statement, emphasizing that the platform is aware of the issue. It also reports that the FDIC is taking action to assess its concerns. The spokesperson reiterated Bitcoin exchange OKCoin’s commitment to respect applicable laws and regulations. He also expressed his willingness to collaborate with stakeholders, including regulators. A few other crypto companies, such as Voyager and FTX US, had previously received warnings from the FDIC. Accordingly, it should be noted that this situation is not an isolated incident. These actions of the FDIC have significance. He also provides accurate and transparent communication in the Bitcoin and crypto money industry, especially about insurance coverage and regulatory compliance.
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