- Company risks violating U.S. banking laws
- The exchange is accused of publishing false claims
The U.S. Federal Deposit Insurance Corporation (FDIC) accuses cryptocurrency exchange OKCoin of releasing fake insurance claims. The exchange has already received a stern warning for posting “false statements” on its website and advertising channels.
In a letter dated June 15, the FDIC said the exchange made false claims about insuring certain cryptocurrency products. In this regard, the corporation demands that the exchange remove from its website statements that may be misleading, regarding the insurance of its customers’ accounts. If, however, the conditions set by the FDIC are not met, OKCoin risks violating U.S. banking laws.
FDIC noted that the lack of a clear distinction between dollar deposits and cryptoassets on the platform has created a misconception.. The regulator says OKCoin’s statements could be taken to mean that FDIC insurance, which is designed to protect traditional bank deposits, applies to all types of customer funds, including cryptocurrencies.
Responding to the FDIC’s warning, OKCoin promised to swiftly evaluate the statements and take the necessary steps to correct them.
The FDIC’s call to action means that regulators are increasing oversight of cryptocurrency transactions, which could lead to enforcement action if the inaccuracies found are not corrected immediately.