The Hong Kong Monetary Authority (HKMA) has warned unauthorized cryptocurrency companies not to present themselves as banks.
Hong Kong’s central bank, the HKMA, has issued a clear “bank” warning against unlicensed cryptocurrency companies. by the regulatory body Friday, September 15 In the announcement made today, it was stated that crypto money companies should introduce themselves as banks. it will be wrong and it was emphasized that they should avoid using this term.
HKMA defines themselves as “crypto bank”, “crypto asset bank” and “digital asset bank”. using banking terms cryptocurrency companies that promote and use the term “deposit” to describe funds may violate banking laws by expressing that these companies are more to be cautious invited. The HKMA also stated that these characterizations may be contrary to banking regulation.
The regulator is based in Hong Kong due to the territory’s banking laws. only licensed institutions He reminded that he was allowed to carry out banking transactions.
HKMA, not licensed And not having an official bank status by the central bank of crypto companies not inspected While notifying the public, the funds in such companies are also not protected by the deposit protection scheme specified.
The warning in question Hong Kong who received a warning for not having a license, for which an investigation was initiated by of JPEX It was noteworthy that it came after the liquidity problems it experienced. JPEX suspended some of its transactions following the investigation.