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FDIC Imposes Restrictions over Crypto Signage and Advertisements

The Federal Deposit Insurance Corporation (FDIC) of the United States revealed a new set of rules and regulations to prevent false marketing and false presentation of crypto firms to get customers.

ShahZaib Ahmed

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FDIC Imposes Restrictions over Crypto Signage and Advertisements

The Federal Deposit Insurance Corporation of the United States advances its strict rules and regulations for crypto firms regarding signage and advertisements. FDIC has now announced the adaptation of a new rule which would directly impact the way the crypto firms have been using adversities themselves.

Recently, The Federal Deposit Insurance Corporation (FDIC) of the United States revealed a new set of rules and regulations to prevent false marketing and false presentation of crypto firms to get customers. Moreover, this would help regulatory firms to prevent the misuse of the logo or name of FDIC.

What Changes to Be Brought by FDIC’s Rule?

This new rule has been compiled after a long time as the FDIC took the last significant step regarding advertising and signage rule back in 2006. After the implementation of this rule, all the crypto firms will have to display their new logos in navy blue and black signs. Before this, financial firms have been using black and golden signs which have been in use since the 1930s.

Also Read: 20% of the US Senate Supports the De Facto Crypto Ban, Says John Deaton

All of the proposed changes are to be implemented by the start of 2025. Being part of this new rule, the new signage is to be made prominent at all ATMs, brick-and-mortar bank locations, websites and applications. FDIC made it clear this new rule isn’t to target the crypto space but to those who misused the FDIC and posed that the funds were FDIC-insured.

Crypto Community’s Response to the FDIC’s New Rule

Dennis Kelleher, the CEO and president of Better Markets has embraced the FDIC’s new rule and called it the need of an hour. A few crypto firms like Voyager Digital, FTX US and Gemini Earn have been accused of misleading crypto investors about FDIC insurance.  Lately, people are looking closely at crypto because some banks linked to it had problems. The FDIC and New York State had to team up to handle these, like dealing with the closing of Signature Bank.

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