Hong Kong Monetary Authority Warns Against Unlicensed Crypto Asset Institutions

According to PANews, the Hong Kong Monetary Authority (HKMA) has issued a warning to the public to remain vigilant regarding certain overseas crypto asset institutions that are not licensed banks in Hong Kong. These entities have been using the term 'bank' in their names or when describing their products and services, which may potentially violate the Banking Ordinance. The HKMA has observed that two overseas crypto asset institutions, which are not licensed banks in Hong Kong, have recently held events in the city. During these events, one institution reportedly referred to itself as a 'bank,' while the other described its card products as 'bank cards' on its website. The HKMA is concerned that such representations might mislead consumers into believing that these institutions are licensed banks in Hong Kong and are regulated by the HKMA, or that their products and services are provided by licensed banks in Hong Kong. The HKMA emphasizes that crypto asset institutions not recognized in Hong Kong are not subject to its regulation. The use of the term 'bank' by overseas crypto asset institutions or claims of being licensed elsewhere does not imply that they are licensed banks in Hong Kong. Furthermore, products or services labeled with the term 'bank' are not necessarily provided by licensed banks in Hong Kong. The public is urged to exercise caution and verify the licensing status of any financial institution before engaging with them.