OKCoin’s US subsidiary warned by FDIC for misleading insurance claims: what you need to know

TL;DR Breakdown

  • The FDIC has warned OKCoin’s American crypto exchange subsidiary for making misleading claims.
  • OKCoin falsely stated on its website that the HASH token had received regulatory acceptance from the SEC, OCC, FED, and the FDIC.
  • The FDIC clarified that their insurance coverage only applies to banks within the US and does not extend to crypto exchanges.

The US Federal Deposit Insurance Corporation (FDIC) has issued a public warning regarding OKX’s American crypto exchange subsidiary, raising concerns about the company’s misleading claims. In a letter addressed to OKCoin’s CEO Hong Fang, the FDIC highlighted instances where the firm misrepresented itself as insured by a well-known US financial institution regulator.

The FDIC singled out three specific fraudulent statements made by OKCoin. The exchange falsely stated on its website that the HASH token, issued by Provenance Blockchain and traded on their platform, had “received broad regulatory acceptance from the SEC, OCC, FED, and the FDIC.”

Furthermore, in 2020, the FDIC became aware of OKCoin’s misleading assertions on their website, proclaiming to be “licensed across the US with FDIC insurance on OKCoin accounts.” The corporation tweeted a similar message, misleadingly claiming to offer US-based users FDIC insurance on USD deposits. However, the FDIC clarified that their insurance coverage only applies to banks within the country and does not extend to crypto exchanges.

OKCoin is not the first crypto business to receive a warning from the FDIC, as they have previously cautioned other companies, including the now-defunct Voyager Digital. It is crucial to understand that being covered by the Federal Deposit Insurance Corporation is distinct from holding an account with an FDIC-insured bank.

The FDIC’s warning serves as a wake-up call for OKCoin, signaling the need for corrective actions to avoid potential legal repercussions. The regulatory authority has demanded that the exchange promptly remove any false information and compensate affected parties.

This year, US authorities have increased their focus on crypto exchanges. Kraken and Bittrex have recently settled with the US Securities and Exchange Commission (SEC). On the other hand, Binance faces a formidable challenge, as both the SEC and the Commodity Futures Trading Commission (CFTC) have filed charges against the company.

The FDIC’s alert regarding OKCoin sheds light on the importance of transparency and accurate representation within the crypto industry. It underscores the necessity for exchanges to rectify misleading statements, adhere to regulations, and prioritize the protection of their users.

The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:OKCoin’s US subsidiary warned by FDIC for misleading insurance claims: what you need to know

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月19日 01:19
Next 2023年6月19日 03:08

Related articles

  • Europe’s neglected key to economic security

    TL;DR Breakdown Europe needs to boost domestic demand to ensure economic security, following examples set by the US and China. The European Commission’s new economic security strategy focuses on enhancing competitiveness and deepening the single market. Resolving Europe’s economic risks requires both political and corporate consensus. Description Economic robustness is the lifeline that ensures both individual and corporate freedom, and the same principle extends to nations. Europe, known for its economic resilience, is realizing the necessity of bolstering its financial strength to ensure self-determination. Europe’s new economic security strategy The European Commission has taken a step forward, proposing a new economic security … Read more Economic robustness is the lifeline that ensures both individual and corporate freedom, and the same principle extends to nations. Europe, known for its economic resilience, is realizing the necessity of bolstering its financial strength to ensure self-determination. Europe’s new economic security strategy The European Commission has taken a step forward, proposing a new economic security strategy that places the enhancement of competitiveness and the deepening of the single market as its foremost priority. This strategy…

    Article 2023年7月5日
  • There is a little trick to Federal Reserve’s inflation fight

    TL;DR Breakdown Federal Reserve Chair Jay Powell attributes reduced inflation to factors beyond the Fed’s control and rate hikes that have curbed credit demand. Despite the rise in federal funds rate, credit growth in the U.S. still exists, primarily due to credit cards. Description There’s a subtle cunning to the Federal Reserve’s latest endeavors in tackling inflation. Chair Jay Powell, when questioned about the downturn in inflation, offered a comprehensive defense. He noted the subsiding impacts of the pandemic and the Ukraine conflict, falling food and energy prices, and a consumer shift back to services over goods. All these … Read more There’s a subtle cunning to the Federal Reserve’s latest endeavors in tackling inflation. Chair Jay Powell, when questioned about the downturn in inflation, offered a comprehensive defense. He noted the subsiding impacts of the pandemic and the Ukraine conflict, falling food and energy prices, and a consumer shift back to services over goods. All these factors were beyond the Federal Reserve’s influence. However, Powell also alluded to their efforts in managing credit demand through rate hikes. Credit demand…

    Article 2023年7月29日
  • Crypto skeptic senator Tester faces backlash after financial aid request

    TL;DR Breakdown U.S. Senator Jon Tester faces financial challenges and seeks aid on social media. Tester’s skepticism towards cryptocurrencies has caused a stir in the crypto community. Coinbase CEO, Brian Armstrong, openly criticizes Tester’s stance on crypto. Description U.S. Senator Jon Tester finds himself in a financial bind. Known for his skepticism about cryptocurrencies, Tester’s recent plea for financial aid on social media has stirred controversy. The crypto community, in particular, has been swift in its response. Senator Tester, alongside Senator Elizabeth Warren, co-sponsored the Digital Asset Sanctions Compliance Enhancement Act. He has … Read more U.S. Senator Jon Tester finds himself in a financial bind. Known for his skepticism about cryptocurrencies, Tester’s recent plea for financial aid on social media has stirred controversy. The crypto community, in particular, has been swift in its response. Senator Tester, alongside Senator Elizabeth Warren, co-sponsored the Digital Asset Sanctions Compliance Enhancement Act. He has never been shy about his reservations concerning the crypto industry. Tester once remarked that cryptocurrencies “don’t pass the smell test” for him. Regulating digital assets might inadvertently give them…

    Article 2023年9月3日
  • Venezuelan President calls for global de-dollarization amid BRICS summit

    TL;DR Breakdown Venezuelan President Nicolas Maduro calls for the de-dollarization of the global economy during the BRICS summit, advocating for alternative financial systems that use multiple national currencies. Maduro highlights the impact of U.S. sanctions on Venezuela and other countries, stating that at least 28% of the global population is affected by such “imperialist” measures. Despite Venezuela’s unsuccessful bid for BRICS membership, Maduro’s push for financial alternatives could align with BRICS countries’ own goals to reduce dollar dependence, potentially influencing future shifts in global financial systems. Description Venezuelan President Nicolas Maduro has urged for the de-dollarization of the global economy, citing the difficulties that the current dollar-dominated system imposes on emerging countries affected by U.S. sanctions. The call was made during Venezuela’s participation in the recent BRICS summit held in Johannesburg, South Africa. A push for financial independence Maduro’s message to the … Read more Venezuelan President Nicolas Maduro has urged for the de-dollarization of the global economy, citing the difficulties that the current dollar-dominated system imposes on emerging countries affected by U.S. sanctions. The call was made during Venezuela’s…

    Article 2023年8月29日
  • Russia shifts focus to regulating private crypto trading platforms, abandoning national exchange plans

    TL;DR Breakdown Russian lawmakers abandon plans for a state-level cryptocurrency exchange and instead focus on regulating private crypto trading platforms. The Ministry of Finance opposed the idea of a national crypto exchange, advocating for comprehensive regulation of digital assets. The Russian central bank will oversee the regulatory framework for private crypto exchanges, which will facilitate cross-border transactions and help businesses navigate sanctions. Russian lawmakers have decided to halt the development of a state-level cryptocurrency trading platform. However, this decision reverses the government’s previous plan to create a state-owned crypto exchange to bolster tax revenue. According to the local newspaper Izvestia, the Ministry of Finance opposed the idea of a national exchange and argued in favor of prioritizing comprehensive regulation of digital assets. Regulatory focus shifts to private crypto exchanges Instead of pursuing a national exchange, Russian lawmakers are now focused on establishing a regulatory framework allowing private companies to launch their crypto trading platforms. Russia’s central bank would monitor these platforms. Russia’s shift in strategy is aimed at facilitating cross-border settlements and mitigating the impact of financial sanctions imposed by…

    Article 2023年6月2日
TOP