The Hong Kong Monetary Authority (HKMA) has issued a warning to the public regarding overseas crypto firms falsely presenting themselves as licensed banks in the city state.
The HKMA has identified two instances where such firms have either directly referred to themselves as a “bank” or used the term “bank card” to describe their products.
This misrepresentation could mislead consumers into believing these firms are under HKMA supervision, which is not the case.
The HKMA emphasizes that only authorised institutions, including licensed banks, restricted license banks, and deposit-taking companies, licensed by them can conduct banking business in Hong Kong.
Using the word “bank” in a business name or description without proper authorisation under the Banking Ordinance is a criminal offense.
The regulator clarifies that even if an overseas crypto firm uses “bank” in its name or claims to be licensed elsewhere, it does not automatically grant them legitimacy in Hong Kong.
The HKMA cautioned the public that these crypto firms are not under its supervision.
Consumers are urged to exercise caution and verify the licensing status of any firm claiming to be a bank in Hong Kong, especially those using terms like “bank card” which may misleadingly suggest an association with authorised institutions.
The HKMA provides a register of authorised institutions on its website and encourages the public to utilise their Public Enquiry Service hotline (2878 8222) for any clarifications.
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