Hong Kong central bank warns against crypto firms using banking terms


17 Sep 2023 10:38 AM

Hong Kong's central bank said that only licensed institutions are authorized to carry out deposit-taking businesses in the region. ...

  • The Hong Kong Monetary Authority (HKMA) has warned that crypto businesses using banking terminology may be violating banking laws.
  • Only licensed institutions are allowed to carry out banking or deposit-taking businesses in Hong Kong.
  • Firms using terms like "crypto bank" or claiming to offer banking services may be breaking the law.
  • Using the word "bank" in the name or descriptions of companies without proper authorization is unlawful.
  • Crypto firms that are not banks are not supervised by the HKMA, and funds placed in "crypto banks" are not protected by the deposit protection scheme.
  • Hong Kong has been cracking down on violators of licensing laws, including crypto exchange JPEX.

The article highlights the warning issued by the Hong Kong Monetary Authority regarding crypto businesses using banking terminology and potentially violating banking laws. It also emphasizes the importance of licensed institutions and the lack of supervision for crypto firms that are not banks. Overall, the sentiment is cautionary and regulatory.

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You May Ask

What warning did the Hong Kong Monetary Authority issue to crypto businesses?What are the banking laws in Hong Kong regarding crypto businesses?What terms or claims may indicate that a crypto firm is breaking the law?How are funds placed in "crypto banks" different from traditional banks in terms of protection?What actions has Hong Kong taken to crack down on violators of licensing laws, specifically mentioning JPEX?

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