Hong Kong central bank warns crypto firms against misleading bank claims
The Hong Kong Monetary Authority (HKMA) is taking a decisive stance against cryptocurrency-related companies that falsely present themselves as banks. Hong Kong cracks down on crypto businesses The HKMA has issued a stern warning to crypto currency-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 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 ...