Hong Kong Monetary Authority: Cryptocurrency institutions claiming to be "banks" may be in violation of relevant regulations.

The Hong Kong Monetary Authority (HKMA) has urged Hong Kong citizens to be vigilant and cautious of certain overseas cryptocurrency institutions that are not licensed banks in Hong Kong. These institutions may claim to be "banks" in Hong Kong or use the term "bank" when describing their products or services. Such actions may have violated the Banking Ordinance. The HKMA has noted that two overseas cryptocurrency institutions that are not licensed banks in Hong Kong have held activities in Hong Kong. During these activities, one of them was reported to have referred to itself as a "bank," while the other described its card products as "bank cards" on its website. The HKMA is concerned that such statements by these institutions may mislead consumers into believing that they are licensed banks in Hong Kong under the supervision of the HKMA, or that their products and services are provided by licensed banks in Hong Kong. According to the Banking Ordinance, only authorized institutions recognized by the HKMA, restricted license banks, and deposit-taking companies (referred to collectively as authorized institutions) are allowed to carry out banking or deposit-taking activities in Hong Kong. Apart from licensed banks in Hong Kong, it is illegal for anyone operating in Hong Kong to use the term "bank" in their name or title, or to claim to be a bank or operating banking businesses in Hong Kong. The HKMA reminds citizens that cryptocurrency institutions not recognized in Hong Kong are not regulated by the HKMA. Overseas cryptocurrency institutions that include the term "bank" in their name, or claim to be "cryptocurrency banks" licensed elsewhere, do not necessarily mean that they are licensed banks in Hong Kong. Furthermore, products or services with the term "bank" in their name are not necessarily provided by licensed banks in Hong Kong.