1. BITBILIHome
  2. Article

Hong Kong Monetary Authority warns against misleading crypto “banks”

• 188 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

  • Logan Paul’s CryptoZoo is yet to refund investors

    TL;DR Breakdown Logan Paul’s CryptoZoo is yet to refund investors despite his announcement in January. Investors are frustrated with the lack of communication and transparency. Description Investors of Logan Paul’s NFT gaming project, CryptoZoo, are reportedly still awaiting details regarding the promised refund of 1000 Ethereum (equivalent to $1.93 million at current prices). Despite Paul’s initial announcement in January, communication with the CryptoZoo community has dwindled, leaving investors frustrated. Concerns were raised by “internet detective” Coffezilla, who initially exposed the project’s … Read more Investors of Logan Paul’s NFT gaming project, CryptoZoo, are reportedly still awaiting details regarding the promised refund of 1000 Ethereum (equivalent to $1.93 million at current prices). Despite Paul’s initial announcement in January, communication with the CryptoZoo community has dwindled, leaving investors frustrated. Concerns were raised by “internet detective” Coffezilla, who initially exposed the project’s issues in December 2022. In a recent YouTube video, Coffezilla revealed that Paul has not paid back the victims, nor has he provided a clear plan for the refunds. This lack of progress has led to growing skepticism among investors. Logan…

    Article 2023年7月4日

  • Egypt joins BRICS in shifting away from US Dollar in trade settlements

    TL;DR Breakdown Egypt has joined the BRICS economic bloc in shifting away from the US dollar for trade settlements, opting to use local currencies such as the rupee, ruble, and yuan. The move reflects ongoing de-dollarization efforts within the BRICS countries, which aim to challenge the dominance of the US dollar in international trade. The upcoming BRICS Summit in August is expected to explore the implementation of a new currency for trade settlements, further challenging the position of the US dollar in global finance. Egypt has made a significant move in its trade practices by abandoning the US dollar in transactions with the BRICS economic bloc. The country aims to utilize local currencies, such as the Indian rupee, Russian ruble, and Chinese yuan, to pay imports from these key BRICS members. Egypt’s Supply Minister, Ali Moselhy, emphasized ongoing discussions about trading in local currencies, highlighting the potential shift away from the dominant role of the US dollar. BRICS’ de-dollarization efforts gain momentum The rise of the BRICS economic bloc continues to shape the global power dynamics, with member countries taking…

    Article 2023年6月17日

  • BRICS approves six countries to join January 1st

    TL;DR Breakdown BRICS is expanding with six new members: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. China pushed for this expansion, potentially countering the G7’s influence. Initial hesitation from India; eventual support citing strengthened ties. Description The BRICS coalition is about to change its face and increase its global influence. The prominent bloc, consisting of Brazil, Russia, India, China, and South Africa, is preparing to welcome six additional nations into its fold, marking a significant expansion for the emerging market group. Come the start of the next year, Argentina, Egypt, Ethiopia, … Read more The BRICS coalition is about to change its face and increase its global influence. The prominent bloc, consisting of Brazil, Russia, India, China, and South Africa, is preparing to welcome six additional nations into its fold, marking a significant expansion for the emerging market group. Come the start of the next year, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates will officially become part of the BRICS community. A Power Play or Strategy? South African President Cyril Ramaphosa broke the news…

    Article 2023年8月25日

  • U.S. inflation falters further – Here is what the numbers show

    TL;DR Breakdown U.S. inflation rates have dropped to 3% in June, a stark contrast to other advanced economies struggling with high inflation. Major U.S. stock indices have reached 15-month highs, and the dollar’s value is decreasing. Despite the fall in headline inflation, core inflation remains high, suggesting the Federal Reserve may need to raise interest rates further. Description U.S. inflation, a persistent worry over the past year, has been noticeably tamed, with rates dwindling to 3% in June, presenting a stark contrast to other advanced economies grappling with high inflation figures. The latest reports have triggered a dip in the dollar while also showcasing the Federal Reserve’s effective management of price pressures. A … Read more U.S. inflation, a persistent worry over the past year, has been noticeably tamed, with rates dwindling to 3% in June, presenting a stark contrast to other advanced economies grappling with high inflation figures. The latest reports have triggered a dip in the dollar while also showcasing the Federal Reserve’s effective management of price pressures. A contrast to global trends As June’s numbers roll in,…

    Article 2023年7月13日

  • X (Twitter) gains major advantage because of this

    TL;DR Breakdown Zuckerberg introduced Threads to rival Twitter (X), initially gaining 44 million users. Despite blunders by Musk on X, including visibility tweaks and a rise in ads, X remains dominant. Threads’ pitch of being a peaceful alternative lacked the raw debate and drama that attracts users to X. Description Mark Zuckerberg’s competitive punch seemed to land perfectly with the introduction of Threads. An immediate threat to Twitter, now dubbed “X”, Threads zoomed past with a staggering 44 million daily active users. But, like many adrenaline-pumped stories, the dust settled, revealing Threads’ substantial user drop, dwindling to a mere 8 million. Yet, while Threads’ performance … Read more Mark Zuckerberg’s competitive punch seemed to land perfectly with the introduction of Threads. An immediate threat to Twitter, now dubbed “X”, Threads zoomed past with a staggering 44 million daily active users. But, like many adrenaline-pumped stories, the dust settled, revealing Threads’ substantial user drop, dwindling to a mere 8 million. Yet, while Threads’ performance ebbed, X’s inherent nature has shielded it, highlighting an interesting dynamic of the social media landscape. Why…

    Article 2023年8月20日
TOP