Hong Kong Monetary Authority: Cryptocurrency institutions providing services in Hong Kong under the name of "bank" may be illegal

ChainCatcher news, according to the official website, the Hong Kong Monetary Authority (HKMA) urges the public to remain vigilant and be cautious of certain overseas crypto asset institutions that are not licensed banks in Hong Kong. They claim to be "banks" in Hong Kong or use the term "bank" when describing their products or services. These actions may have violated the Banking Ordinance.

The HKMA has noted that two overseas crypto asset institutions that are not licensed banks in Hong Kong held activities in Hong Kong. During the events, one of them was reported to have referred to itself as a "bank," while the other described its card products on its website as "bank cards." The HKMA is concerned that the statements made by these institutions may mislead consumers into believing they are licensed banks in Hong Kong and regulated by the HKMA, or that such products and services are provided by licensed banks in Hong Kong.

The HKMA reminds the public that crypto asset institutions not recognized by Hong Kong are not regulated by the HKMA. The inclusion of the term "bank" in the name of overseas crypto asset institutions, or claims by overseas "crypto banks" of having obtained licenses elsewhere, does not mean they are necessarily licensed banks in Hong Kong. Furthermore, products or services with the term "bank" in their name are not necessarily provided by licensed banks in Hong Kong.