Bank AI

Read

<p class="is-style-lead">The Hong Kong Monetary Authority (HKMA) is taking a decisive stance against cryptocurrency-related companies that falsely present themselves as banks.</p> 
<h2 class="wp-block-heading" id="hong-kong-cracks-down-on-crypto-businesses">Hong Kong cracks down on crypto businesses</h2> 
<p>The HKMA has <a href="https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/09/20230915-5/" target="_blank" rel="noopener noreferrer nofollow">issued a stern warning</a> to cryptocurrency-related firms that are misrepresenting themselves as banks or describing their products as deposits. According to HKMA, this action is seen as a contravention of the Banking Ordinance.</p> 
<p><a href="https://www.hkma.gov.hk/eng/" target="_blank" rel="noopener noreferrer nofollow">HKMA</a> has noticed some crypto businesses using terms like “crypto bank,” “crypto asset bank,” “digital asset bank,” “digital bank,” or “digital trading bank.” They also claim to offer “banking services” or “banking accounts”. Some even use the term “deposits” for funds placed with them by clients and promote “savings plans” as “low-risk” with “high returns.” The regulator reckons such descriptions can mislead the public into believing these <a href="https://crypto.news/mark-cuban-loses-870k-in-metamask-related-crypto-scam/" rel="noopener noreferrer nofollow">crypto firms</a> are authorized banks in Hong Kong. </p> 
<p> You might also like: <a href="http://Hong Kong Monetary Authority warns crypto firms against misleading banking claims The Hong Kong Monetary Authority (HKMA) has taken a decisive stance against cryptocurrency-related companies that falsely present themselves as banks, cautioning against the misrepresentation of products as deposits.  Banking ordinance violations: HKMA cracks down on crypto businesses The Hong Kong Monetary Authority (HKMA) has issued a stern warning to cryptocurrency-related firms that are misrepresenting themselves as banks or describing their products as deposits. According to HKMA, this action is seen as a contravention of the Banking Ordinance. HKMA has noticed some crypto businesses using terms like " crypto bank," "crypto asset "digital or trading bank." they also claim to offer "banking services" accounts". some even use the term "deposits" for funds placed with them by clients and promote "savings plans" as "low-risk" "high returns." these descriptions can mislead public into believing that firms are authorized banks in hong kong. this situation lead potential financial risks. you may like: former deutsche bank employer pleads guilty fraud according banking ordinance, only licensed banks, restricted license deposit-taking companies which hkma has granted a allowed conduct business unauthorized usage of word "bank" any representation conducting kong is an offense. emphasizes lack oversight stresses not supervised hkma, deposit protection scheme does protect them. case doubt about entity claiming be soliciting deposits kong, advised verify entity's authorization on hkma's website call enquiry service hotline. move underlines increasing scrutiny tightening regulations around cryptocurrency industry worldwide, significantly continually blurring lines between traditional finance digital ecosystem. read more: bankman-fried publishes 250 pages self-justification ahead trial" rel="noopener noreferrer nofollow"> Former Deutsche Bank employer pleads guilty to crypto fraud </a> </p> 
<p>According to the Banking Ordinance, only licensed banks, restricted license banks, and deposit-taking companies to which the HKMA has granted a license are allowed to <a href="https://crypto.news/deutsche-bank-partners-with-swiss-firm-taurus-to-offer-digital-asset-services/" rel="noopener noreferrer nofollow">conduct</a> banking or deposit-taking business in Hong Kong. Unauthorized usage of the word “bank” or any representation of conducting banking business in Hong Kong is an <a href="https://crypto.news/hong-kong-policymaker-responds-to-vitalik-buterin-over-regulation/" rel="noopener noreferrer nofollow">offense</a>.</p> 
<h2 class="wp-block-heading" id="hkma-emphasizes-lack-of-oversight">HKMA emphasizes lack of oversight </h2> 
<p>The HKMA stresses that crypto firms not authorized as banks in Hong Kong are not supervised by the HKMA, and the Hong Kong Deposit Protection Scheme does not protect funds placed with them.</p> 
<p>In case of doubt about an entity <a href="https://crypto.news/swift-to-beta-test-cbdc-interlinking-solution-with-central-banks/" rel="noopener noreferrer nofollow">claiming</a> to be a bank or soliciting deposits in Hong Kong, the public is advised to verify the entity’s authorization on the HKMA’s website or call the HKMA’s Public Enquiry Service hotline.</p> 
<p>This move by the HKMA underlines the increasing scrutiny and tightening regulations around the cryptocurrency industry worldwide, significantly as crypto firms are continually blurring the lines between traditional finance and the digital asset ecosystem.</p> 
<p> Read more: <a href="https://crypto.news/bankman-fried-publishes-250-pages-of-self-justification-ahead-of-trial/" rel="noopener noreferrer nofollow"> Bankman-Fried publishes 250 pages of self-justification ahead of trial </a> </p>

Hong Kong central bank warns crypto firms against misleading bank claims

Table of Contents

crypto.news

Other articles published on Sep 17, 2023

Dogecoin Millionaire Claims Bitcoin Spark Could Deliver 20x Returns Soon

ShidoScan new Official name of Shido Block Explorer!

A Deep Dive into Decentralization and the Theory of the Firm

How to Mint an NFT?

Arthur Hayes, Why is He so Popular in the Crypto World?

Here Are Some of the Best Crypto Savings Account Services

Join our free newsletter for daily crypto updates!