Catenaa, Thursday, November, 2024 – The Hong Kong Monetary Authority (HKMA) has issued a warning to two overseas cryptocurrency firms for allegedly misrepresenting themselves as banks, a potential violation of the region’s Banking Ordinance.
The HKMA, however, did not disclose the names of the firms involved.
In a statement released Friday, the regulator noted that one firm falsely portrayed itself as a bank, while another described its card offering as a “bank card.” The H KMA expressed concern that such claims could mislead consumers into believing these companies are licensed banks under its supervision.
This warning comes as Hong Kong works to balance its ambition to become a global cryptocurrency hub with maintaining robust regulatory oversight.
The city introduced a licensing regime for crypto trading platforms in June 2023, enabling licensed firms to offer services to retail investors. To date, three licenses have been granted to OSL Exchange, HashKey Exchange, and HKVAX.
In addition, Hong Kong’s government is set to introduce tax concessions for specific investments, including cryptocurrencies, by the end of the year, according to Christopher Hui, Secretary for Financial Services and the Treasury.
The HKMA’s crackdown highlights the regulatory challenges of fostering innovation in a rapidly evolving financial landscape while protecting consumers from misleading practices.
