Hong Kong warns that crypto companies are not banks”

• Hong Kong warns crypto company to use the word "bank"
• The Hong Kong Monetary Authority (HKMA) says that only licensed banks can accept "deposits".
• The use of terms such as "Digitalbank", "Kryptobank" and "Kryptoasset-Bank" violates the banking regulation.

The Hong Kong Monetary Authority (HKMA) has warned crypto companies that it is illegal if not authorized companies or platforms describe themselves as "bank" or deposit business.

The Hong Conge regulations prohibit this, according to the HKMA.

Only licensed banks can receive deposits

In the warning of the HKMA, it was pointed out that companies that pursue such an approach to the public to the public violate the banking regulation. The regulatory authority made the public aware of this fact and reminded the crypto companies that only the term "bank" is allowed to use the HKMA or can accept deposits from the public.

" According to the banking regulation, only licensed banks, banks with limited license and deposit companies (referred to as" authorized institutions "), which HKMA has given a license, may do banking or deposit transactions ", warned the regulatory authority on a rel = "NOFOLOW NOOPENER" target = "_ blank" href = "https://www.hkma.gov.hk/eng/news-and-media/pressreleases/2023/20230915-5/"> press release published on Friday.

The terms that warned the Hong Kong financial market regulations crypto companies against using or describing themselves, "DigitalBank", "KryptoBanks", "Kryptoasset-Bank", "Digital-trading bank" and "digital-asset bank". Also not licensed companies should not claim to offer bank accounts or banking services and not refer to funds that are transferred to accounts with companies.

also terms such as "savings plan" or "low risk" and "high return" are not legally permitted for such non -authorized platforms.

" These descriptions could tempt the public to assume that these crypto companies are approved banks in Hong Kong, which they can entrust their savings ," noted Hkma.

According to the regulatory authority, crypto companies in Hong Kong are not approved and regulated as banks. HKMA also does not oversee these platforms, which means that funds that are created in these companies do not benefit from the Hong Kong deposit guarantee system.

stock exchanges warned of illegal services

Hong Kong is one of the fastest growing crypto hubs in the world and many crypto companies, including stock exchanges, have tried to receive official approval in order to offer products and services.

The recent presentation of a crypto frame by the Hong Kong government, which aims at the redesign of the crypto sector, was praised by many actors in the crypto industry.

but while jurisdiction opens the financial hub for cryptocurrencies, the Hong Kong Securities and Futures Commission (SFC) recently warned stock exchanges and other providers against the incorrectly to present their regulatory status. The regulatory authority also asked the stock exchanges not to offer any services and products before the process has been completed, or to expand services that are not permitted by law.