HKMA Warns Crypto Firms Over Misleading Bank Claims Amid Hong Kong’s Crypto Ambitions

The Hong Kong Monetary Authority (HKMA), the region's central banking authority, issued a warning today about two overseas cryptocurrency firms allegedly misrepresenting themselves as banks. This development underscores heightened regulatory vigilance as Hong Kong strives to cement its reputation as a global crypto hub.

In a statement released Friday, the HKMA revealed that one crypto firm had labeled itself as a bank, while another described its card offering as a “bank card.”

“These misleading representations risk deceiving consumers into believing the firms are licensed banks under the HKMA's oversight,” the statement said. “Such actions may violate the Banking Ordinance.”

Although the HKMA withheld the names of the implicated firms, the warning reflects the regulator’s broader efforts to curb financial fraud. The announcement comes as Hong Kong continues to attract crypto businesses. Since launching a licensing framework for crypto trading platforms in June 2023, the HKMA has issued licenses to OSL Exchange, HashKey Exchange, and HKVAX, enabling them to serve retail investors.

Looking ahead, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, recently hinted at extending tax concessions to cryptocurrency investments by the year's end—a move aimed at bolstering the city's appeal to digital asset enterprises.