On November 15, Hong Kong's HKMA issued a warning to crypto companies about using the term ‘bank’.
HKMA Warning
The regulator is concerned about overseas crypto firms using banking terms, such as calling themselves banks or offering 'bank cards' without proper licensing.
Regulatory Context
The HKMA clarified that unlicensed crypto companies fall outside its regulatory scope, but misuse of banking terminology remains a criminal offense.
Responses and Implications
The warning comes as Hong Kong intensifies digital asset regulation, where local firms face challenges accessing banking services. Johnny Ng has called for easing restrictions and developing virtual banking to support the sector.
HKMA’s warning highlights the need for compliance with legal requirements amidst increasing regulation of Hong Kong's crypto industry.
