{"id":20778,"date":"2024-11-15T12:12:24","date_gmt":"2024-11-15T12:12:24","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=20778"},"modified":"2024-11-15T12:12:24","modified_gmt":"2024-11-15T12:12:24","slug":"this-week-in-crypto-asia-hong-kong-authorities-flag-overseas-crypto-firms-for-misleading-claims","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=20778","title":{"rendered":"This Week In Crypto Asia: Hong Kong Authorities Flag Overseas Crypto Firms For Misleading Claims"},"content":{"rendered":"

The Hong Kong Monetary Authority (HKMA) cautioned the public about certain overseas crypto firms misusing the word \u201cbank\u201d in their marketing and descriptions.<\/span><\/p>\n

On 15 November 2024<\/a> HKMA said, \u201cOnly licensed banks, restricted license banks, and deposit-taking companies authorized by the HKMA are permitted to conduct banking or deposit-taking activities in the region.\u201d\u00a0<\/span><\/p>\n

Alert: Please be cautious about crypto firms which may have misused the word \u201cbank\u201d. Certain overseas crypto firms, in recent events in HK, were reported to have made the representation that the firm was a \u201cbank\u201d or offered card product as \u201cbank card\u201d on the firm\u2019s website. pic.twitter.com\/Va5ebhhbTI<\/a><\/p>\n

\u2014 HKMA \u9999\u6e2f\u91d1\u878d\u7ba1\u7406\u5c40 (@hkmagovhk) November 15, 2024<\/a><\/p>\n\n

Misusing Term \u201cBank\u201d Raises Concerns; Could Mislead Consumers<\/h2>\n

The HKMA reportedly identified incidents involving two overseas crypto firms that made misleading representations in Hong Kong.<\/span><\/p>\n

Allegedly, one of the firms described itself as a \u201cbank,\u201d while the other referred to its card product as a \u201cbank card\u201d on its website. <\/span><\/p>\n

The HKMA expressed concerns around misleading consumers into believing that the firms are licensed banks operating under supervision. <\/span>\u201cSuch representations could mislead consumers to believe they are licensed banks in Hong Kong and are under the HKMA\u2019s supervision,\u201d HKMA said.<\/span><\/p>\n

Furthermore, using the term \u201cbank\u201d in names or product descriptions without the authority\u2019s written consent could potentially be a criminal offence for entities, revealed HKMA. \u201c<\/span>Under section 97 of the Banking Ordinance, no person, other than a licensed bank in Hong Kong or a central bank, may use the word \u2018bank\u2019 or its derivatives.\u201d<\/span><\/p>\n

The strict regulatory framework is being enforced to ensure the public is not misled by unauthorized entities posing as legitimate banks.<\/span><\/p>\n

EXPLORE:\u00a0<\/span>Binance Issues Warning On Clipper Malware Targeting Withdrawal Addresses<\/span><\/a><\/strong><\/p>\n

Crypto Firms That Are Not Authorized Institutions, Are Not Supervised By HKMA<\/strong><\/h2>\n

The HKMA provided resources to verify authorized institutions. This encourages consumers to consult the HKMA\u2019s register of authorized institutions<\/a> or contact its Public Enquiry Service hotline for clarification.\u00a0<\/span><\/p>\n

Additionally, the HKMA reiterated its commitment to protect the public from misleading practices. It is to ensure a clear distinction between licensed banks and unauthorized entities. The authority said, \u201cProducts or services with names carrying the word \u2018bank\u2019 are not necessarily provided by licensed banks in Hong Kong.\u201d<\/span><\/p>\n

With these measures, HKMA is aiming to mitigate potential risks posed by unauthorized entities in the growing crypto sector.<\/span><\/p>\n

EXPLORE: <\/span>Hong Kong to Approve More Crypto Exchange Licenses Following Inspection Period<\/span><\/a><\/strong><\/p>\n

Hong Kong\u2019s Evolving Crypto Landscape<\/h2>\n

Hong Kong is trying to position itself as a global leader in digital finance by introducing a robust regulatory framework for virtual assets.<\/span><\/p>\n

Backed by the institutions like the HKMA, the city is cultivating a thriving digital asset ecosystem and advancing innovation in the Web3 sector.<\/p>\n

One of its major initiatives include a forthcoming stablecoin regulatory framework<\/a>, prioritizing fiat-backed stablecoins to ensure financial stability.\u00a0<\/span><\/p>\n\n

The legislation is set to be introduced by the end of 2024.<\/span><\/p>\n

Recently, in August, 2024, the HKMA had launched Project Ensemble Sandbox (the Sandbox)<\/a>,\u00a0 enabling interbank settlements through experimental tokenized money, with an emphasis on transactions involving tokenized assets.<\/span><\/p>\n

Moreover, by combining stablecoins with broader efforts like Project Ensemble, Hong Kong is building a comprehensive framework for digital asset integration. <\/span><\/p>\n

Meanwhile, the HKMA has advanced its e-HKD pilot program to phase 2<\/a>, collaborating with over 20 firms, including prominent entities like HSBC, Visa, Standard Chartered and DBS. <\/span>This initiative explores the practical use cases of a Central Bank Digital Currency (CBDC).<\/span><\/p>\n

The forward-looking approach aligns Hong Kong with global trends in digital currency adoption.<\/span><\/p>\n

The post This Week In Crypto Asia: Hong Kong Authorities Flag Overseas Crypto Firms For Misleading Claims<\/a> appeared first on <\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The Hong Kong Monetary Authority (HKMA) cautioned the public about certain overseas crypto firms misusing the word \u201cbank\u201d in their marketing and descriptions. On 15 November 2024 HKMA said, \u201cOnly licensed banks, restricted license banks, and deposit-taking companies authorized by the HKMA are permitted to conduct banking or deposit-taking activities in the region.\u201d\u00a0 Alert: Please […]<\/p>\n","protected":false},"author":0,"featured_media":20779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-20778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/20778"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20778"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/20778\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/20779"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}