1. BITBILIHome
  2. Article

Hong Kong Monetary Authority warns against misleading crypto “banks”

• 44 views

TL;DR Breakdown

  • The Hong Kong Monetary Authority (HKMA) has issued a stern warning to cryptocurrency-related companies employing misleading nomenclature.
  • Only institutions that have obtained proper licenses from the HKMA are legally permitted to provide banking services in Hong Kong. 
  • This regulatory caution follows a recent warning from the Securities and Futures Commission (SFC) regarding the cryptocurrency exchange JPEX.

Description

The Hong Kong Monetary Authority (HKMA) has issued a stern warning to cryptocurrency-related companies employing misleading nomenclature, particularly those that present themselves as “banks” and their offerings as “deposits.” In a recent statement, the financial watchdog advised the public to exercise caution when engaging with such entities, emphasizing the potential risks associated with these deceptive … Read more

The Hong Kong Monetary Authority (HKMA) has issued a stern warning to cryptocurrency-related companies employing misleading nomenclature, particularly those that present themselves as “banks” and their offerings as “deposits.” In a recent statement, the financial watchdog advised the public to exercise caution when engaging with such entities, emphasizing the potential risks associated with these deceptive labels.

The HKMA’s alert was prompted by its recent discovery of numerous crypto firms in Hong Kong that use titles such as “crypto bank,” “digital asset bank,” “crypto asset bank,” “digital bank,” or “digital trading bank.” According to regulators, these designations violate Hong Kong’s Banking Ordinance and could create a false impression that these crypto businesses are authorized banks in Hong Kong, capable of safeguarding individuals’ savings.

Authorized institutions only

The HKMA reiterated that, under the Banking Ordinance, only institutions that have obtained proper licenses from the HKMA are legally permitted to provide banking services in Hong Kong. Any unauthorized operations are considered illegal and subject to penalties. 

The HKMA stated, “Other than authorized institutions, it is an offense for any person to use the word ‘bank’ in the name or description under which they carry on business, or make any representation that they are a bank or carrying on banking business in Hong Kong; and it is also an offense for any person to carry on a business of taking deposits in Hong Kong or invite members of the public to make any deposit.”

Securities and Futures Commission’s caution

This regulatory caution follows a recent warning from the Securities and Futures Commission (SFC) regarding the cryptocurrency exchange JPEX. The SFC declared that JPEX is an unauthorized entity and disclosed several suspicious practices on its official website. These practices included false descriptions claiming the firm was a licensed entity, adding to the growing concerns regarding misleading representations within the crypto industry.

The HKMA’s alert underscores the increasing need for regulatory oversight and clarity in the cryptocurrency sector. With the rapid growth of digital assets and crypto-related businesses, authorities worldwide are taking steps to protect consumers from potential scams and misleading practices. By enforcing legal standards and ensuring proper authorization for banking services, regulators aim to maintain the integrity and trustworthiness of Hong Kong’s financial system.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Hong Kong Monetary Authority warns against misleading crypto “banks”

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年9月17日 16:41
Next 2023年9月17日 19:49

Related articles

  • U.S. politics clash: Dems push for CBDC reign, GOP fears risks

    TL;DR Breakdown The U.S. House Financial Services Committee debated the CBDC Anti-Surveillance State Act, discussing the implications of a U.S. CBDC. The debate delved into broader topics, including Star Wars, anarchists, and “crypto bros.” Tom Emmer introduced the bill, warning against the government’s potential surveillance tool. Description The showdown on Capitol Hill over the future of digital currency in the U.S. has taken an intense turn. On one side, the Democrats argue that Central Bank Digital Currencies (CBDCs) could bolster the nation’s financial leadership. The GOP, however, fears potential infringements on the rights and privacy of Americans. From Star Wars to Financial … Read more The showdown on Capitol Hill over the future of digital currency in the U.S. has taken an intense turn. On one side, the Democrats argue that Central Bank Digital Currencies (CBDCs) could bolster the nation’s financial leadership. The GOP, however, fears potential infringements on the rights and privacy of Americans. From Star Wars to Financial Oversight The U.S. House Financial Services Committee recently tackled the contentious CBDC Anti-Surveillance State Act. Instead of a routine discussion,…

    Article 2023年9月21日

  • Senator Lummis calls for a clear regulatory framework after the XRP ruling

    TL;DR Breakdown Senator Lummis has called on crypto regulators to come up with clear guidelines after the XRP ruling. The path forward for Congress and crypto regulation. Description United States Senator Cynthia Lummis has taken to social media to emphasize the importance of a recent court ruling declaring that Ripple’s XRP token should not be considered a security when sold on digital asset exchanges. The ruling, delivered by Judge Analisa Torres, has ignited discussions which has made Senator Lummis sound the urgent need … Read more United States Senator Cynthia Lummis has taken to social media to emphasize the importance of a recent court ruling declaring that Ripple’s XRP token should not be considered a security when sold on digital asset exchanges. The ruling, delivered by Judge Analisa Torres, has ignited discussions which has made Senator Lummis sound the urgent need for Congress to establish a comprehensive and unambiguous regulatory framework for cryptocurrencies. Senator Lummis says the court ruling can shape regulation In her statement, Senator Lummis highlighted the significance of the court ruling in shaping cryptocurrency regulation. She stressed…

    Article 2023年7月17日

  • China state lenders slash dollar deposit rates again

    TL;DR Breakdown China’s primary state banks have reduced their dollar deposit rates for the second time in a month in an attempt to stabilize the depreciating yuan. The move aims to discourage households from putting savings into higher-yielding dollar deposits and incentivize Chinese firms. This decision could alleviate pressure on commercial lenders’ net interest margin since banks’ dollar deposit rates had previously risen above lending rates. Description As economic developments unfold, China’s primary state banks have once again reduced their dollar deposit rates, marking the second such cut within a span of a month. A strategic move, it underlines the attempts by the Chinese authorities to halt the depreciating yuan and thus, shapes the country’s monetary landscape. China’s attempt to salvage the … Read more As economic developments unfold, China’s primary state banks have once again reduced their dollar deposit rates, marking the second such cut within a span of a month. A strategic move, it underlines the attempts by the Chinese authorities to halt the depreciating yuan and thus, shapes the country’s monetary landscape. China’s attempt to salvage the…

    Article 2023年7月6日

  • De-dollarization will be a priority talk at BRICS meeting

    TL;DR Breakdown The upcoming BRICS summit in Johannesburg, South Africa, will discuss de-dollarization, a move away from the U.S. dollar in global trade. The Brazilian President, Luiz Inacio Lula da Silva, supports the use of national currencies and a potential BRICS common currency, like the euro. The BRICS bank is seen as an alternative financial institution, reducing dependency on Western-based financial mechanisms. Description As the world watches the shifting landscape of international finance, a crucial conversation is looming on the horizon. At the forefront of this dialogue is the forthcoming BRICS summit scheduled to take place in Johannesburg, South Africa, from August 22-24. This coalition, composed of Brazil, Russia, India, China, and South Africa, is predicted to place … Read more As the world watches the shifting landscape of international finance, a crucial conversation is looming on the horizon. At the forefront of this dialogue is the forthcoming BRICS summit scheduled to take place in Johannesburg, South Africa, from August 22-24. This coalition, composed of Brazil, Russia, India, China, and South Africa, is predicted to place de-dollarization high on its…

    Article 2023年6月27日

  • U.S. court freezes assets of Ex-Celsius CEO amid fraud probe

    TL;DR Breakdown Federal authorities have frozen the financial assets of Alex Mashinsky, the former CEO of cryptocurrency lending platform Celsius. The U.S. District Court for the Southern District of New York unsealed a restraining order on September 5. Celsius has entered into a non-prosecution agreement with the DOJ and is under new management. Description Federal authorities have escalated actions against Alex Mashinsky, the embattled former CEO of Celsius (CEL), a once-prominent cryptocurrency lending platform. On September 5, the U.S. District Court for the Southern District of New York unsealed a restraining order that froze Mashinsky’s financial assets. This move comes as part of an ongoing criminal probe led by … Read more Federal authorities have escalated actions against Alex Mashinsky, the embattled former CEO of Celsius (CEL), a once-prominent cryptocurrency lending platform. On September 5, the U.S. District Court for the Southern District of New York unsealed a restraining order that froze Mashinsky’s financial assets. This move comes as part of an ongoing criminal probe led by the Department of Justice (DOJ) and follows allegations of securities fraud and market…

    Article 2023年9月7日
TOP