The Hong Kong Monetary Authority (HKMA) has warned the public about some overseas crypto firms that are misusing the word “bank” in their marketing material and descriptions. On 15 November 2024, the HKMA said 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.
The HKMA expressed concerns around misleading consumers into believing that the firms are licensed banks operating under supervision. It is a criminal offence for entities to use the term “bank” in their names or product descriptions without the authority’s written consent. The strict regulatory framework is being enforced to ensure the public is not misled by unauthorized entities posing as legitimate banks.
The HKMA provided resources to verify authorized institutions and encourages consumers to consult the HKMA’s register of authorized institutions or contact its Public Enquiry Service hotline for clarification. With these measures, the HKMA is aiming to mitigate potential risks posed by unauthorized entities in the growing crypto sector.
