1. The Hong Kong Monetary Authority (HKMA) has warned the public about certain overseas cryptocurrency firms misusing the term “bank” in their marketing and descriptions. 2. The HKMA stated that only licensed banks, restricted license banks, and deposit-taking companies authorized by the HKMA are permitted to conduct banking or deposit-taking activities in the region.
3. The HKMA identified incidents involving two overseas crypto firms that made misleading representations in Hong Kong. One firm described itself as a “bank,” and the other referred to its card product as a “bank card” on its website. 4. The HKMA expressed concerns around misleading consumers into believing that the firms are licensed banks operating under supervision.
The authority stated that such representations could mislead consumers to believe they are licensed banks in Hong Kong and are under the HKMA’s supervision. 5. Using the term “bank” in names or product descriptions without the authority’s written consent could potentially be a criminal offence for entities, according to the HKMA.
6. The strict regulatory framework is being enforced to ensure the public is not misled by unauthorized entities posing as legitimate banks. 7. The HKMA provided resources to verify authorized institutions, encouraging consumers to consult the HKMA’s register of authorized institutions or contact its Public Enquiry Service hotline for clarification.
8. The HKMA reiterated its commitment to protect the public from misleading practices and ensure a clear distinction between licensed banks and unauthorized entities. 9. Hong Kong is trying to position itself as a global leader in digital finance by introducing a robust regulatory framework for virtual assets.
10. The city is cultivating a thriving digital asset ecosystem and advancing innovation in the Web3 sector, with major initiatives including a forthcoming stablecoin regulatory framework prioritizing fiat-backed stablecoins to ensure financial stability. 11. The HKMA has advanced its e-HKD pilot program to phase 2, collaborating with over 20 firms, including prominent entities like HSBC, Visa, Standard Chartered, and DBS.
This initiative explores the practical use cases of a Central Bank Digital Currency (CBDC). 12. The forward-looking approach aligns Hong Kong with global trends in digital currency adoption.
