The Hong Kong Monetary Authority (HKMA) warned unauthorised crypto companies not to describe their services as banking.
The regulator regards such advertising as misleading to customers.
According to the HKMA, the use by crypto companies of terms ‘crypto bank’ or ‘digital asset bank’, the characterization of funds as ‘deposits’, and the promotion of low-risk, high-yield savings plans — all contravene the Banking Ordinance.
Earlier, ForkLog reported that the Hong Kong Securities and Futures Commission started an investigation into the unauthorised cryptocurrency exchange JPEX. The platform suspended trading, and one person was arrested.