The Hong Kong Monetary Authority (HKMA) is cautioning unlicensed crypto businesses against labeling their services as banking services.
The HKMA views this type of marketing as deceptive to consumers.
According to the regulator, crypto companies’ use of terms such as “crypto bank” or “digital asset bank”, referring to their funds as “deposits”, and promoting low-risk, high-return savings plans goes against the banking regulations in Hong Kong.
The Hong Kong Securities and Futures Commission has previously launched an investigation into the unlicensed JPEX cryptocurrency exchange. The exchange has since halted trading and one individual has been arrested.
