According to Coincu, the Hong Kong Monetary Authority (HKMA) has issued a warning to cryptocurrency companies, cautioning them against the misuse of banking terminology. The central bank is concerned that such practices may mislead the public into thinking these entities are authorized banks in Hong Kong. Under the Hong Kong Banking Law, only licensed institutions are allowed to engage in banking or deposit-taking activities within the jurisdiction.
The HKMA has specifically warned against the use of terms like 'crypto bank,' 'digital asset bank,' or 'crypto asset bank' to describe services or purport to offer banking services or accounts, as this may constitute a breach of the law. The central bank has also clarified that it is illegal for any person or business to incorporate the term 'bank' within their company name or description without the requisite license. Additionally, the HKMA emphasizes that non-bank cryptocurrency companies are not regulated by the central bank, leaving funds held in 'cryptocurrency banks' outside the protection of the region's deposit insurance scheme.