Crypto Firms In Hong Kong Prohibited From Identifying As 'Banks,' Regulator Says

• The Hong Kong Monetary Authority (HKMA) has warned crypto firms in Hong Kong against using the term "bank" unless they are authorized institutions.
• The warning addresses concerns about misleading terminology used by certain cryptocurrency companies, such as self-designations as crypto banks or digital asset banks.
• The HKMA emphasized that funds placed with entities misrepresenting themselves as banks are not covered by the Hong Kong Deposit Protection Scheme.
• Hong Kong has positioned itself as a welcoming destination for crypto companies and has established a task force to support the development of Web3 technologies.

The sentiment of the article is negative, as it highlights the warning issued by the HKMA to crypto firms and emphasizes the violation of banking laws and the need for regulatory oversight.