Hong Kong’s central bank, the Hong Kong Monetary Authority (HKMA), issued a warning on November 15 regarding the misuse of the term “bank” by unlicensed crypto companies operating in the region. The HKMA cautioned that such misrepresentations could potentially violate local banking laws.
The regulator raised concerns about overseas-based crypto firms using banking terminology, such as calling themselves banks or promoting products like “bank cards” on their websites. It emphasized that only licensed banks in Hong Kong are permitted to use the term “bank” in their name or services.
“Other than licensed banks in Hong Kong, it is an offense for any person to use the word ‘bank’ in the name or description under which the person carries on business or makes any representation that the person is a bank or is carrying on banking business in Hong Kong,”
the statement read.
The HKMA did not disclose the names of the companies involved but clarified that crypto firms it did not grant licenses to are outside its regulatory purview. The regulator, however, emphasized that it is illegal for unlicensed entities to present themselves as banks or engage in banking activities in Hong Kong. And this misrepresentation could constitute a criminal offence under Hong Kong law.
This warning comes as Hong Kong intensifies efforts to regulate digital asset businesses. While authorities work on establishing a clearer framework, crypto and Web3 companies in the region face ongoing difficulties accessing banking services.
Johnny Ng, a member of the Hong Kong Legislative Council, has urged the government and local banks to ease restrictions on banking services for these firms.
In an August 9 post on X, Ng highlighted how limited banking access hinders the operational efficiency of crypto businesses. He called for the expansion of virtual banking services to support the digital asset sector and align with Hong Kong’s broader Web3 development objectives.
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