The Hong Kong Monetary Authority (HKMA) has warned unlicensed crypto companies against describing their services as banking services.
The regulator regards such advertising as misleading to customers.
The HKMA said crypto companies’ use of the terms “crypto bank” or “digital asset bank”, characterizing funds as “deposits”, and promoting low-risk, high-return savings plans are contrary to Hong Kong’s banking regulations.
ForkLog previously reported that the Hong Kong Securities and Futures Commission began an investigation into the JPEX cryptocurrency exchange, which operated without a license. The platform suspended trading and one person was arrested.
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