7 months ago
The Hong Kong Monetary Authority (HKMA) has cautioned the nationalist to stay vigilant against overseas crypto firms falsely presenting themselves arsenic banks, according to a Nov. 15 notice.
The regulator revealed that immoderate overseas crypto firms are portraying themselves arsenic banks to summation the spot of Hong Kong users. Many of these entities run without due licenses and are not authorized to usage the word “bank” successful their branding oregon promotional materials.
The HKMA stressed that specified actions could interruption the Banking Ordinance, which governs the usage of banking-related presumption and activities successful Hong Kong.
Violators
The alert pointed to 2 unnamed overseas crypto firms arsenic offenders. One reportedly referred to itself arsenic a bank, portion the different described its merchandise arsenic a slope card. These representations, according to the HKMA, hazard misleading the nationalist into believing these entities are licensed banks nether its supervision.
The fiscal authorization clarified that lone licensed banks, restricted licence banks, and deposit-taking companies authorized by the HKMA are legally permitted to prosecute successful banking oregon deposit-taking activities successful Hong Kong.
HKMA stated that the Banking Ordinance prohibits unauthorized individuals oregon organizations from utilizing “bank” successful their names oregon descriptions. It besides forbids misleading representations that suggest an entity is simply a slope oregon conducts banking concern successful Hong Kong.
The regulator besides emphasized that crypto firms not recognized arsenic authorized institutions successful Hong Kong are extracurricular its regulatory scope.
It added that overseas crypto firms utilizing the word “bank” oregon branding themselves arsenic “crypto banks” licensed successful different jurisdictions bash not needfully clasp a banking licence successful Hong Kong. Similarly, products oregon services labeled with “bank” whitethorn not originate from licensed banks successful the region.
The informing comes amid Hong Kong’s caller determination to expand the database of licensed crypto exchanges by the extremity of the year.
Despite its estimation arsenic a key Asian crypto hub, Hong Kong enforces a rigorous licensing process. So far, lone 3 crypto exchanges — OSL Exchange, HashKey Exchange, and HKVAX — person secured licenses.
The station Hong Kong watchdog issues informing astir overseas entities pretending to beryllium crypto ‘banks’ appeared archetypal connected CryptoSlate.
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