U.S. banking regulator instructs banks to curb confusing crypto claims on deposit insurance #togrp7
The United States banking regulator, Federal Deposit Insurance Corporation (FDIC), has issued a new advisory to banks in a bid to curb customer confusion regarding cryptocurrencies. In the advisory published on July 29, the FDIC stated that it was concerned that customers might be confused in understanding how safe their money is when invested in cryptocurrencies.
According to FDIC, the advisory mainly targets companies that offer both uninsured crypto products and insured bank deposit products. The agency stressed that banks need to ensure customers understand which of their funds will be insured, especially in the event of a collapse. Part of the new advisory requires banks to confirm and monitor crypto companies, so they do not misrepresent the availability of deposit insurance. In such a case, the FDIC called on banks to take the necessary.#togrp7
