The Hong Kong Monetary Authority (HKMA) has warned the public about some overseas crypto companies that are using the word “bank” incorrectly in their advertising. On November 15, 2024, the HKMA said that, in Hong Kong, only licensed banks, restricted license banks, and deposit-taking companies that are authorized by the HKMA may do banking or deposit-taking work.
The HKMA is worried that these crypto companies have confused people into thinking that they are licensed banks that are under the HKMA’s supervision. The HKMA also said that using the word “bank” in names or product descriptions without the authority’s written permission could be a crime. The HKMA has set up a strict regulatory framework to keep people from being tricked by fake banks.
