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 company names or descriptions without authorization is also unlawful.
  • Crypto firms are not supervised by the central bank, and funds placed in "crypto banks" are not protected by deposit insurance.
  • Hong Kong has been cracking down on violators of licensing laws, including crypto exchange JPEX.

The article highlights the warning issued by the HKMA regarding crypto businesses using banking terminology and violating banking laws. It also emphasizes the importance of authorized institutions and the lack of supervision for crypto firms. Overall, the sentiment is cautionary and regulatory.

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You May Ask

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