Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
Home»EXCHANGE NEWS»Hong Kong targets fraudulent cryptocurrency companies disguised as banks
EXCHANGE NEWS

Hong Kong targets fraudulent cryptocurrency companies disguised as banks

By Crypto FlexsNovember 16, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Hong Kong targets fraudulent cryptocurrency companies disguised as banks
Share
Facebook Twitter LinkedIn Pinterest Email

The HKMA warns that misleading use of the word ‘bank’ by cryptocurrency companies not only deceives consumers but also violates Hong Kong’s banking ordinance.

Highlights

  • The Hong Kong Monetary Authority (HKMA) has warned two overseas cryptocurrency companies against misrepresenting themselves as licensed banks.
  • Legal action could be taken against crypto companies that use the word “bank” in their names in violation of banking bylaws.
  • Hong Kong’s cryptocurrency regulations, introduced in June 2023, aim to ensure consumer protection and promote industry trust.

On November 15, 2024, the Hong Kong Monetary Authority (HKMA), the region’s de facto central bank, issued a stern warning to two overseas cryptocurrency companies posing as banks. The move comes as local authorities step up efforts to protect consumers and ensure transparency in Hong Kong’s fast-growing cryptocurrency market.

HKMA cracks down on misleading cryptocurrency companies

The Hong Kong Monetary Authority (HKMA) said in a statement that one cryptocurrency company misrepresented itself as a bank and another misrepresented its cards as ‘bank cards’ on its website. These deceptions have raised serious concerns about consumers being misled into believing that these companies operate as licensed banks under HKMA regulations.


“The HKMA is concerned that such claims by these companies may lead consumers to believe that they are Hong Kong-licensed banks and are supervised by the HKMA and that such products and services are provided by Hong Kong-licensed banks. (…) Such actions may constitute a violation of banking regulations,” the HKMA said.

The Banking Ordinance clearly defines which institutions are permitted to operate as banks in Hong Kong. Only institutions authorized by the HKMA, such as licensed banks, limited licensed banks and depository companies, may carry out banking and deposit activities. The law also prohibits businesses from using the term “bank” in their name or services unless they hold the appropriate licenses.

The HKMA also said that the use of “banks” by cryptocurrency companies not only misleads the public but also constitutes a breach of regulations. Legal action may be taken against these companies and you may face consequences if you misrepresent yourself as a licensed financial institution in Hong Kong.

Hong Kong’s cryptocurrency regulation strengthens market confidence

Hong Kong has strategically positioned itself as a prominent global hub for cryptocurrencies, with increasing momentum in recent years. In June 2023, the city introduced a licensing regime designed to regulate cryptocurrency trading platforms while promoting innovation within the digital asset sector. This system requires licensed cryptocurrency companies to follow strict guidelines to ensure consumer protection.

The recent crackdown on two cryptocurrency companies reflects broader efforts by Hong Kong’s monetary authorities to tighten controls over companies operating in the cryptocurrency market. By combating fraud and deception, authorities play a pivotal role in maintaining trust within the financial system.

next

disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to convey accurate and timely information, but should not be taken as financial or investment advice. Market conditions can change rapidly, so please verify the information yourself and consult with experts before making any decisions based on such information.

Cryptocurrency News, News


With over 3 years of cryptocurrency writing experience, Bena is committed to making cryptocurrency, blockchain, Web3, and fintech accessible to everyone. Aside from cryptocurrency, Bena enjoys reading books in her free time.

Bena Ilias of X

Julia Sakovich

Julia Sakovich from X

thank you!

You have successfully joined our subscriber list.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

The fullback of $ 16 of the chain link (link) can set a parabolic price rally.

September 18, 2025

Cardano (ADA) Signal Recovery -Is there a strong rise?

September 15, 2025

The price of Etherrium surges beyond $ 4,500. -Main level for monitoring more profits

September 12, 2025
Add A Comment

Comments are closed.

Recent Posts

CryptoLists.com Recognised As “Crypto Affiliate Of The Year” At SBC’s Affiliate Leaders Awards 2025

September 22, 2025

BitMine Immersion (BMNR) Announces Pricing Of $365.24MM Registered Direct Offering At $70 Per Share

September 22, 2025

Why Over 6 Million Investors Trust PlanMining And Earn Over $7,700 In Passive Income Every Day

September 22, 2025

Barunson, Studio Behind Parasite, To Launch NPLUG IP Remixing Platform On Story And Bring Flagship IP Onchain

September 22, 2025

PrimeXBT Expands Crypto Futures With 101 New Coins, Delivering Best-in-Class Trading Conditions

September 22, 2025

In the CFTC crackdown, OKX’s perps dex lunch stops: What is the following?

September 22, 2025

Cardano is 4% away, saying that Hoskinson will break the Internet.

September 21, 2025

Coinbase’s rich violations are connected to $ 400 million in encryption, and court file disclosure

September 21, 2025

Ethereum Based Meme Coin Pepeto Presale Past $6.7 Million As Exchange Demo Launches

September 21, 2025

What is the expectation of the future?

September 21, 2025

Unlock Massive Rewards And Win Big

September 20, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

CryptoLists.com Recognised As “Crypto Affiliate Of The Year” At SBC’s Affiliate Leaders Awards 2025

September 22, 2025

BitMine Immersion (BMNR) Announces Pricing Of $365.24MM Registered Direct Offering At $70 Per Share

September 22, 2025

Why Over 6 Million Investors Trust PlanMining And Earn Over $7,700 In Passive Income Every Day

September 22, 2025
Most Popular

Ethereum Foundation 2020 Spring Update

February 5, 2024

Ethereum developers explore EIP 7742 and Pectra upgrades in ACDC Call #144.

October 18, 2024

Binance Launches Pyth Network (PYTH) on BNSOL Super Stake with APR Boost Airdrop

November 29, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.