Hong Kong Monetary Authority Warns Public About Crypto Firms Posing as Banks

Hong Kong Monetary Authority Warns Public About Crypto Firms Posing as Banks



On September 15th the Hong Kong Monetary Authority (HKMA) issued a warning regarding cryptocurrency companies that falsely present themselves as "banks" or advertise services as "deposits."



According to the HKMA such misleading descriptions may violate Hong Kongs Banking Ordinance, which strictly prohibits organizations from posing as banks or suggesting that they provide banking services. Engaging in activities is considered illegal.



In their statement the HKMA highlighted instances where cryptocurrency companies have adopted titles like "crypto bank " "digital asset bank," or "digital bank " falsely claiming to offer similar services and accounts to traditional banks.



The concern lies in the potential for these terminologies to deceive the public into perceiving these companies as officially recognized financial institutions


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#Blockchain, #Cryptocurrency, #Cryptomarket, #Cryptonewstoday, #HongKong, #News, #Regulations

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