The Hong Kong Monetary Authority (HKMA) has issued a warning about two foreign cryptocurrency companies that are posing as “banks” while operating in Hong Kong, in violation of the Banking Ordinance.
On November 15, the Hong Kong Monetary Authority (HKMA) issued a warning notice about two overseas-based cryptocurrency companies that claimed to be “banks” while operating in Hong Kong, seriously violating the provisions of the Banking Ordinance.
According to the HKMA, one of the two companies used the title “bank” in its name, while the other promoted bank card products on its official website. This behavior was assessed by the authority as potentially causing serious confusion, leading consumers to believe that these companies were licensed and subject to strict supervision by the HKMA.
The HKMA stressed that, under the Banking Ordinance, only licensed financial institutions are permitted to use the title “bank” or provide related services in Hong Kong. It is an offence to falsely identify or advertise themselves as a “bank” for the purpose of attracting customers.
The agency also warned that cryptocurrency companies that are not licensed by the HKMA will fall outside the scope of supervision, and the services they provide may not comply with existing laws in Hong Kong.
This strong warning reflects the HKMA’s commitment to protecting consumers and maintaining transparency and safety in the digital financial market. The HKMA also emphasizes the importance of regulatory compliance for companies operating in the cryptocurrency sector, thereby affirming its commitment to creating a sound and trustworthy financial environment in Hong Kong.
