Five businesses have received desist notes from the Federal Deposit Insurance Corporation for supposedly making misleading statements about insurance linked to digital currencies. The corporation објављен a media update on Friday revealing cease and desist order for crypto trading FTX US, as well as webpages Cryptosec, Cryptonews, FDICCrypto, and SmartAssets. In the texts approved on Thursday, the government department claims that such institutions misled the general public regarding specific cryptocurrency-related goods being covered by FDIC.
The FDIC stated that these depictions regarding specific crypto-related goods being FDIC-insured or equities held in investment transactions being FDIC-insured are incorrect or deceptive. According to the controller, these businesses must take appropriate remedial action to rectify the falsified or deceptive declarations on their webpage, and community media account holders.
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The FDIC has already been outspoken about the absence of liability insurance for organizations other than banks, including crypto-focused businesses. The authority published a notice last July informing banking institutions in the US that they should evaluate and mitigate risk when entering into third-party partnerships with virtual currency providers. The corporation reaffirmed that while transactions covered by insurance banks are shielded against insolvency for approximately $250,000, crypto companies are not.
The FDIC is accused of taking an excessively harsh treatment of digital resources, even disheartening banking institutions from interacting with virtual currency providers. According to Cointelegraph, Pennsylvania’s senate candidate Pat Toomey, who still represents Senate Banking Committee, информисан the FDIC manager and continued to act as chairman Martin Gruenberg of accusations created by a complainant. Toomey stated in the memo that he believes the FDIC is acting incorrectly to discourage banking institutions from venturing with legitimately cryptocurrency-related businesses.
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Source: https://insidebitcoins.com/news/fdic-has-issued-desist-messages-to-five-companies-including-ftx-us