Modern Slave
  • Home
  • Bitcoin
    Where Liquid Staking Meets Tokenization

    Where Liquid Staking Meets Tokenization

    A Three Arrows Capital Founder Talks About His New Crypto Bankruptcy Exchange

    Bankrupt Crypto Hedge Fund 3AC's Su Zhu Apprehended in Singapore, Liquidator Says

    Consensus 2023 Nav Bar

    Crypto Payments Firm Circle (USDC) Rolls Out Tokenized Credit Protocol Perimeter, Unveils Circle Research Division

    The SBF Trial: How Did We Get Here?

    EnSam, Jury Questions and Another Denial for FTX’s Bankman-Fried

    Tokenization Could Improve Bond Market Efficiency, HKMA Says After $100M Green Bond Issuance

    JPEX Crypto Exchange Probe Sees 4 More Arrests: SCMP

    BTC Aggregate CVDs & Delta

    Why Is Bitcoin Price Up Today? Insights From Leading Analysts

    Fortnite Developer Epic Games Lays Off 16% of Staff Following Metaverse-Inspired Transition

    Fortnite Developer Epic Games Lays Off 16% of Staff Following Metaverse-Inspired Transition

    BlackRock Alters Stance on ESG Policies as Bitcoin ETF Decision Looms

    These Spot Bitcoin ETF Applications Have Been Delayed Again

    Valkyrie Gets Approval to Start Buying ETH Futures For its Existing Bitcoin ETF

    Valkyrie Gets Approval to Start Buying ETH Futures For its Existing Bitcoin ETF

  • Blockchain
  • Celsius
  • Crypto Mining
  • Ethereum
  • Exchanges
  • Forex Trading
  • Market
  • Regulation
  • More
    • XRP
    • Stellar
    • Store
  • Home
  • Bitcoin
    Where Liquid Staking Meets Tokenization

    Where Liquid Staking Meets Tokenization

    A Three Arrows Capital Founder Talks About His New Crypto Bankruptcy Exchange

    Bankrupt Crypto Hedge Fund 3AC's Su Zhu Apprehended in Singapore, Liquidator Says

    Consensus 2023 Nav Bar

    Crypto Payments Firm Circle (USDC) Rolls Out Tokenized Credit Protocol Perimeter, Unveils Circle Research Division

    The SBF Trial: How Did We Get Here?

    EnSam, Jury Questions and Another Denial for FTX’s Bankman-Fried

    Tokenization Could Improve Bond Market Efficiency, HKMA Says After $100M Green Bond Issuance

    JPEX Crypto Exchange Probe Sees 4 More Arrests: SCMP

    BTC Aggregate CVDs & Delta

    Why Is Bitcoin Price Up Today? Insights From Leading Analysts

    Fortnite Developer Epic Games Lays Off 16% of Staff Following Metaverse-Inspired Transition

    Fortnite Developer Epic Games Lays Off 16% of Staff Following Metaverse-Inspired Transition

    BlackRock Alters Stance on ESG Policies as Bitcoin ETF Decision Looms

    These Spot Bitcoin ETF Applications Have Been Delayed Again

    Valkyrie Gets Approval to Start Buying ETH Futures For its Existing Bitcoin ETF

    Valkyrie Gets Approval to Start Buying ETH Futures For its Existing Bitcoin ETF

  • Blockchain
  • Celsius
  • Crypto Mining
  • Ethereum
  • Exchanges
  • Forex Trading
  • Market
  • Regulation
  • More
    • XRP
    • Stellar
    • Store
No Result
View All Result
Modern Slave
No Result
View All Result
Home Exchanges

FDIC Makes Clear That It Does Not Insure Crypto Exchanges

by Source in article
August 5, 2022
in Exchanges
0
Crypto, fraud, and insolvency - Lexology

Last week, the Federal Deposit Insurance Corporation (“FDIC”) was part of two releases clarifying that only insured banks and thrifts enjoy FDIC insurance, notwithstanding what some non-banks may say in their marketing materials. The first release, together with the Federal Reserve Board (“FRB”), is a cease-and-desist letter to Voyager Digital (the “Joint C&D Letter”). The second is an FDIC Advisory to FDIC-Insured Institutions Regarding FDIC Deposit Insurance and Dealings with Crypto Companies.

The Joint C&D Letter

In the Joint C&D Letter, the FDIC and FRB ordered Voyager to stop making statements that “suggest in any way, expressly or implicitly, that (1) Voyager is insured by the FDIC; (2) customers who invested with the Voyager cryptocurrency platform would receive FDIC insurance coverage for all funds provided to, held by, on, or with Voyager, without reference to the insured depository institution account; or (3) the FDIC would insure customers against the failure of Voyager itself, from Voyager’s websites…” This letter follows Voyager’s suspension of trading on its platform and filing for Chapter 11 bankruptcy.

The Joint C&D Letter noted that Voyager did put some customer money in deposits at an insured New York State member bank (hence, the involvement of the FRB) and that Voyager’s statements were possibly misleading to consumers because, while dollars deposited in the insured depository institution partner of Voyager would enjoy FDIC insurance, and thus protection in the event of the bank’s failure, that insurance does not mean Voyager itself is FDIC insured.

The Advisory

The FDIC’s Advisory followed a similar theme as the Joint C&D Letter in that it is important that any non-bank financial companies, such as crypto exchanges that partner with insured depository institutions, do not cause consumer confusion when offering non-bank services but also partners with an insured bank or thrift. The FDIC’s advisory seems to suggest that the FDIC expects an affirmative duty on the part of the insured bank that partners with non-bank financial providers to monitor their non-bank customers for what might be false or misleading statements, stating “… insured banks should confirm and monitor that these companies do not misrepresent the availability of deposit insurance in order to measure and control risks to the bank, and should take appropriate action to address such misrepresentations.” Some banks were likely doing that already, but for some, this might be an additional risk management process they would need to add.

Both the Joint C&D Letter and the Advisory follow the somewhat recent disruptions in the crypto stablecoin markets, as well as the FDIC finalizing amendments to its rules regarding misrepresentation of insured status in June. The announcement last week makes clear that the FDIC and the other federal bank regulators will be on the lookout for marketing from non-bank financial providers, especially crypto exchanges and wallets, that may be viewed as misleading by implying that FDIC insurance applies to funds or investments where it does not.

Source link

Recommended

Business Today

Cryptocurrency prices today: Bitcoin rises over 1%; XRP, Dogecoin & Stellar gain up to 7%

2 years ago
Decentralized Crypto Index Funds Set to Explode

Decentralized Crypto Index Funds Set to Explode

2 years ago

Popular News

    Shiba Inu Launches Shibarium Portal as SHIB Locks In Binance US Listing

    Shiba Inu (SHIB) Price Analysis: Will Breakout Occur?

    September 29, 2023
    Taiwan Tightens Crypto Governance; El Salvador Stockpiles Bitcoin | Forkast IQ Video

    Taiwan Tightens Crypto Governance; El Salvador Stockpiles Bitcoin | Forkast IQ Video

    September 29, 2023
    USD/CAD: Loonie weakens after GDP miss and on oil profit-taking

    USD/CAD: Loonie weakens after GDP miss and on oil profit-taking

    September 29, 2023

    Must Read

    • Shiba Inu (SHIB) Price Analysis: Will Breakout Occur?
    • Taiwan Tightens Crypto Governance; El Salvador Stockpiles Bitcoin | Forkast IQ Video
    • USD/CAD: Loonie weakens after GDP miss and on oil profit-taking
    • Bitcoin BTC Price Slumps Below $27K, XRP, SOL and TRON Prices … – CoinDesk
    • Should You Buy Stellar (XLM) Friday?

    Category

    • Bitcoin
    • Blockchain
    • Celsius
    • Crypto Mining
    • Ethereum
    • Exchanges
    • Forex Trading
    • Market
    • Regulation
    • Stellar
    • XRP

    Important Pages

    • Home
    • Privacy Policy
    • Terms and Conditions
    • Social Media Disclaimer
    • Medical Disclaimer
    • FTC Compliance
    • Earnings Disclaimer
    • DMCA Compliance
    • Copyright Notice
    • Anti-Spam Policy
    • Contact Us

    About Us

    We provide latest News related to CryptoCurrency.

    • Home
    • Contact Us
    • Terms and Conditions
    • Privacy Policy
    • Copyright Notice

    © 2021 Modernslave.io

    No Result
    View All Result
    • Home
    • Bitcoin
    • Blockchain
    • Celsius
    • Crypto Mining
    • Ethereum
    • Exchanges
    • Forex Trading
    • Market
    • Regulation
    • Stellar
    • XRP

    © 2021 Modernslave.io

    By continuing to browse the site you are agreeing to our use of cookies
    x Logo: Shield Security
    This Site Is Protected By
    Shield Security →

    Subscribe For Latest Updates

    Sign up to best of crypto news, informed analysis and opinions on what matters to you.

    Invalid email address
    We promise not to spam you. You can unsubscribe at any time.
    Thanks for subscribing!