Hong Kong Regulator Warns Against Crypto Companies Posing as Banks

Hong Kong regulator warns against crypto companies posing as banks and promoting deceptive products. Public advised to exercise caution and not entrust savings to unauthorized entities. Stay updated with the latest crypto news.

Posted 7 months ago in Blockchain

Image: Illustration of a bank vault with cryptocurrency symbols to represent deceptive crypto companies posing as banks.

The Hong Kong Monetary Authority (HKMA) has issued a warning to investors about crypto companies falsely presenting themselves as banks. The regulator cautioned that labeling these companies as banks and promoting their products as deposits with low risk and high returns is deceptive to the public. The HKMA emphasized that these crypto firms are not authorized banks in Hong Kong and do not fall under the protection of the Hong Kong Deposit Protection Scheme. They urged the public to exercise caution and not to entrust their savings with these misleading entities.

The warning from the HKMA follows a previous alert from the Securities and Future Commission (SFC), another financial watchdog in Hong Kong. The SFC highlighted suspicious features on the JPEX crypto exchange, leading the exchange to make changes to its withdrawal fees and business practices. Despite its proximity to China, Hong Kong is aiming to establish itself as a prominent crypto hub. It has introduced regulatory measures, including a dedicated Task Force, to create a secure environment for crypto firms to operate and safeguard industry stakeholders and investors.

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Last updated 9/15/2023, 8:05:23 PM


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