Crypto Firms Misrepresenting As Banks Warned By HKMA

The Hong Kong Monetary Authority (HKMA) has issued a warning to the public about cryptocurrency companies misrepresenting themselves as banks in the region. The HKMA has found instances where overseas crypto firms, which are not licensed as banks in Hong Kong, have used the term ‘bank’ in their product descriptions, potentially causing confusion among consumers.

According to Hong Kong’s Banking Ordinance, only licensed banks and deposit-taking companies can legally conduct banking or deposit-taking activities. It is illegal for entities other than licensed banks to use the word ‘bank’ in their business names or descriptions. The HKMA advises the public to verify the status of financial institutions through its online register of authorized institutions.

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