The Hong Kong Monetary Authority (HKMA) has issued a warning to the public regarding cryptocurrency companies that portray themselves as banks potentially violating local banking regulations.
In a statement, the HKMA cautioned that the use of banking-related terminology might lead individuals to mistakenly believe that these crypto firms are licensed financial institutions in Hong Kong. The authority clarified that approved institutions are legally permitted to engage in banking or deposit-related activities within the region as dictated by local laws.
The HKMA stressed that companies using terms such as " bank," "digital asset bank " or "crypto asset bank " or those claiming to provide traditional banking services could be operating unlawfully.
Furthermore, the HKMA emphasized that it is illegal for any company name or
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First found on: HKMA Warns Public About Unlicensed 'Crypto Banks,' Highlights Lack of Deposit Protection
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