The Federal Deposit Insurance Corporation (FDIC) has issued a notice to cryptocurrency exchange OKCoin, demanding that it immediately remove from its website any statement of support from the FDIC insurance company.
The FDIC has demanded that OKCoin USA Inc. immediately remove any false claims from its website or face enforcement action for violating U.S. banking laws, the FDIC said in a notice to CEO Hong Fang.
"OKCoin is not insured by the FDIC, and the FDIC does not insure no-deposit products," the Federal Deposit Insurance Corporation said in a statement in response to a message posted on OKCoin's website that the exchange provides FDIC insurance for all US dollar deposits.
The FDIC has repeatedly stated that its security measures apply only to banks, not to cryptocurrency companies that have FDIC-insured bank accounts.
Previously, similar notices were sent to Voyager Digital and FTX.US after they announced that the companies were protected by the regulator.
The crypto exchange was founded in 2014 and is headquartered in Hong Kong and China, with offices in the U.S., Malta, Singapore, Japan, and Korea. The company holds valid licenses: FinCEN NMLS No. 1767779, FINTRAC No. M20929749, and Dutch Central Bank No. C88193.
