Hong Kong’s central bank warns against these crypto firms
Hong Kong authorities warn the public about dealing with crypto firms that market themselves as ...
- Hong Kong's central bank, HKMA, has warned the public about crypto businesses marketing themselves as "banks" and urged caution.
- The HKMA stated that such labeling and the use of "deposits" by these companies violate banking laws in the region.
- Money placed in these entities is not protected by the Hong Kong Deposit Protection Scheme.
- The advisory comes as crypto companies rush to get licensed in Hong Kong following the liberalization of the digital asset regulatory framework.
- The Hong Kong Securities and Futures Commission (SFC) recently warned about crypto exchange JPEX operating without a license.
- Hong Kong aims to become a global crypto hub and has formed a task force to support Web3 development in the region.
The article highlights the warning issued by HKMA regarding crypto businesses marketing themselves as banks and the need for caution. It also mentions the violation of banking laws and the lack of protection for money placed in these entities. The liberalization of Hong Kong's digital asset regulatory framework and the aim to become a global crypto hub are seen as positive developments. However, the warning about JPEX operating without a license raises concerns. Overall, the sentiment is a mix of caution, regulatory focus, and potential growth.