Hong Kong's central bank said that only licensed institutions are authorized to carry out deposit-taking businesses in the region.
The Hong Kong Monetary Authority , the special administrative region’s central bank, has issued a warning to users that crypto businesses presenting themselves as banks and using banking terminology could be violating the region’s banking laws.that the use of certain banking terms may be misleading the public, causing users to think that the crypto firms are authorized banks in Hong Kong.
The central bank warned the public that firms describing themselves with words like"crypto bank,""digital asset bank," and"crypto asset bank" or claims to be offering banking services or banking accounts may be breaking the law. According to the HKMA, other than authorized institutions, it's unlawful for persons or businesses to use the word"bank" in the name or descriptions of their companies. In addition, facilitating the taking of deposits without the proper license is also a violation of the law.
The HKMA reminded the public that crypto firms which are not banks are not supervised by the central bank. This means that funds placed within the so-called"crypto banks" are not protected by the region's deposit protection scheme.
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