TechFlow reported, according to Coindesk, that U.S. banking regulators ordered San Francisco-based cryptocurrency exchange OKCoin USA Inc. on Thursday evening to remove misleading statements from its website. In a letter to the company's CEO, the FDIC stated that OKCoin must delete false claims implying its customer accounts are protected by the Federal Deposit Insurance Corporation (FDIC), or face potential enforcement action.
The agency emphasized that OKCoin is not insured by the FDIC and does not provide insurance for non-deposit products. The banking regulator cited three examples of "false and misleading statements" and warned that only banks—not cryptocurrency firms—are eligible for FDIC insurance.
Previously, regulators have issued similar orders to now-bankrupt Voyager Digital and FTX.US.
