Hong Kong Police warn the public against dealing with cryptocurrency companies claiming to be “banks.” It is recommended to use alertness to avoid frauds related to this.
Hong Kong 's central bank, the Hong Kong Monetary Authority (HKMA), warns the public to be wary of cryptocurrency businesses advertising themselves as “banks” and urges them to conduct due diligence. before dealing with these entities.
In a release Chia on September 16, the financial regulator stated that there have been cases of cryptocurrency companies calling themselves crypto banks, digital asset banks or digital asset banks. digital transaction bank.
In other cases, companies were found to use the term “deposits” to describe funds deposited by customers. The HKMA emphasized that all were serious violations of the region's banking regulations.
“Under the Banking Act, only licensed banks, limited banks and depository accepting companies (collectively referred to as 'authorized institutions') that have been licensed by the HKMA may carry out banking business or accepting deposits in Hong Kong”.
The central bank warns the public that funds deposited in these entities are not protected by the Hong Kong Deposit Insurance Scheme. To avoid being scammed, people are advised to refer to the list of authorized organizations from the official HKMA website.
When the market opens, risks also increase
In the context of cryptocurrency companies racing to apply for licenses in this special administrative management area, local government agencies have issued a warning. Local financial regulators must ensure proper compliance with the newly implemented guidelines.
Previously, only professional investors could participate, but the new guidelines allow trading platforms to serve the public. However, the easing of these restrictions has placed additional responsibility on financial regulators to ensure proper compliance with the newly implemented guidelines.
Yesterday, Hong Kong's Securities and Futures Commission (SFC) warned about cryptocurrency exchange JPEX. According to information, this exchange is operating without a license. The SFC also stated a list of "suspicious" signs related to JPEX's operations.
Different from the hostile policy of mainland China, Hong Kong has tried to become a global cryptocurrency center. Local governments have actively sought to capitalize on the growth potential of Web3. Furthermore, a task group has been established to support Web3 development in this area.
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