Reference for Avodah Zarah 86:12

התם בחותמו בולט ומשום חשדא דתניא טבעת שחותמה בולט אסור להניחה ומותר לחתום בה חותמה שוקע מותר להניחה ואסור לחתום בה

That was a case of a protruding seal and because of suspicion [that it might be worshipped, Shmuel objected to it]; for it has been taught: A signet-ring which has a protruding ring, it is forbidden to wear it, but it is permitted to seal with it; and if the signet is sunk in, one may put the ring on but not seal with it.

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