cryptojournalist
False Claims About Banking Services
The Hong Kong Monetary Authority (HKMA) has called out crypto companies misusing the word “bank” to sound more trustworthy. These firms aren’t licensed in Hong Kong but are using banking terms to promote their services, which the HKMA says is illegal.
Two Cases Highlighted
The warning mentioned two overseas crypto firms. One claimed to be a bank, and the other advertised a “bank card” on its website. These tactics can confuse customers into thinking the companies are approved by Hong Kong’s banking regulator, which they aren’t.
The HKMA didn’t reveal the names of the companies but said these actions are misleading and violate local laws.
Strict Banking Rules in Hong Kong
In Hong Kong, only licensed banks and authorized financial institutions can use the word “bank” or offer banking services. Any unlicensed firm doing so is breaking the law.
The HKMA explained:
“Using the term ‘bank’ without being licensed is illegal in Hong Kong.”
It also warned that unlicensed crypto companies are not regulated by the HKMA and may not meet local licensing standards.
