The Hong Kong Monetary Authority (HKMA) has issued a stern warning to cryptocurrency companies regarding the use of banking terminology:
1. Cryptocurrency companies are cautioned against misusing banking terminology that may mislead the public into believing they are authorized banks in Hong Kong.
2. Only licensed institutions are permitted to engage in banking or deposit-taking activities within Hong Kong under the Banking Law.
3. Specific terms like 'crypto bank,' 'digital asset bank,' or 'crypto asset bank' used to describe services or claim to offer banking services or accounts may breach the law.
4. It is illegal for any individual or business to incorporate the term 'bank' within their company name or description without the necessary license.
5. Non-bank cryptocurrency firms are not regulated by the HKMA, meaning funds held in 'cryptocurrency banks' are not protected by the region's deposit insurance scheme.