The Hong Kong Monetary Authority (HKMA) has warned about the misuse of the term “bank” by overseas crypto firms operating in Hong Kong. They have cautioned the public to verify the legitimacy of such claims. The HKMA observed that two crypto firms, which are not licensed banks in Hong Kong, have misrepresented themselves.
This issue has prompted the HKMA to issue guidance to help the public identify legitimate financial institutions. The HKMA has noticed that some crypto firms have been using the term “bank” or “banking services” in their marketing materials, even though they are not licensed banks in Hong Kong. This can lead to confusion among the public and may cause them to believe that these firms are legitimate banks when, in fact, they are not.
To help the public identify legitimate financial institutions, the HKMA has provided some guidance. They have stated that a firm must be licensed by the HKMA to use the term “bank” or “banking services.” They have also provided a list of licensed banks in Hong Kong that the public can refer to. The HKMA’s warning is a reminder for the public to be cautious when dealing with financial institutions, especially those that are not licensed in Hong Kong.
It is important to verify the legitimacy of any financial institution before engaging in any transactions with them. This includes checking if they are licensed by the HKMA and checking their reputation online. In conclusion, the HKMA has issued a warning about the misuse of the term “bank” by overseas crypto firms operating in Hong Kong.
They have cautioned the public to verify the legitimacy of such claims and have provided guidance to help the public identify legitimate financial institutions. The HKMA’s warning is a reminder for the public to be cautious when dealing with financial institutions and to verify their legitimacy before engaging in any transactions with them.
