The Hong Kong Monetary Authority (HKMA) has issued a stern warning to consumers about foreign crypto firms falsely branding themselves as banks.
In a statement released on November 15, the HKMA highlighted that these companies often lack proper licensing and may mislead the public with terms like “bank” in their branding or services.
According to the HKMA, at least two overseas crypto firms were found using the term “bank” to describe themselves or their products.
One called itself a bank, while another marketed a product as a “bank card.”
These misleading representations violate Hong Kong’s Banking Ordinance, which reserves banking-related terms and activities for licensed entities only.
The Banking Ordinance strictly prohibits unauthorized organizations from using the word “bank” in their names or implying they are licensed to conduct banking activities.
Only licensed banks, restricted license banks, and deposit-taking companies authorized by the HKMA are allowed to operate as banks in Hong Kong.
The HKMA emphasized that crypto companies from other jurisdictions, even those with licenses elsewhere, do not automatically meet the requirements to operate as banks in Hong Kong.
Misleading labels like “crypto bank” or products branded with banking terms could create false trust among consumers.
This warning comes as Hong Kong continues to position itself as a global crypto hub.
While the city recently expanded its list of licensed crypto exchanges, it maintains a strict licensing regime to ensure consumer protection.
To date, only three platforms — OSL Exchange, HashKey Exchange, and HKVAX — have met the stringent requirements to operate legally.
The HKMA urged the public to exercise caution when engaging with financial services marketed as “crypto banks,” stressing that many of these entities fall outside its regulatory oversight.
The regulator also reiterated its commitment to maintaining transparency and protecting Hong Kong’s consumers.
