Hong Kong Monetary Authority: Except for authorized institutions, the use of "bank" by virtual asset institutions is a misrepresentation or a suspected crime

Odaily Planet Daily reported that the Hong Kong Monetary Authority issued a document stating that it has noticed that some virtual asset institutions call themselves "crypto banks", "virtual asset banks", "digital asset banks", "digital banks" or "digital transaction banks", or claim that Providing "banking services" or "bank accounts". Some virtual asset institutions also use the word "deposit" to describe the funds deposited by customers in these institutions, or promote "savings plans" as "low risk" and "high return." These descriptions may be misleading. According to the Banking Ordinance, only licensed banks, restricted license banks and deposit-taking companies (collectively referred to as "authorized institutions") that have obtained operating licenses from the Hong Kong Monetary Authority can operate banks or take deposits in Hong Kong. Any person other than an authorized institution who carries on business in Hong Kong by using the name "bank" or representing that the person is a bank or is carrying on banking business in Hong Kong commits an offense; no person shall carry on business in Hong Kong by accepting deposits business, or invite members of the public to make any deposits, otherwise it is also an offence. The Hong Kong Monetary Authority reminds that virtual asset institutions that are not Hong Kong banks are not subject to the supervision of the Hong Kong Monetary Authority, and funds deposited with such institutions or platforms are not protected by the Hong Kong Deposit Protection Scheme.