Recently regulator authorities of Hong Kong warned JPEX which started operating as a bank in the region without getting legal approval. Following suit, it is expected that more crypto firms can do so in the coming time which can be harmful to Hong Kong’s nationals and economy.
Hong Kong Monetary Authority (HKMA), the central bank of Hong Kong has alerted the citizens to be aware of such crypto firms posing to be the banks. Moreover, it advised the people to deal with such firms with full diligence because the financial regulations won’t take the responsibility if it comes out to be fraudulent.
Crypto Firms Posing As Banks
On the 16th of September, a press release came out in the market that addressed the agenda of new crypto firms posing themselves to be the banks. The financial regulator disclosed in the press release that there are several new crypto firms in Hong Kong, labelling them as digital trading banks, digital assets banks or crypto banks.
JPEX, a crypto platform for the easy sale and purchase of crypto assets posed itself as the bank upon which the financial regulatory authority of Hong Kong (HKMA) took notice. Afterwards, shared a press release to warn all other crypto firms and citizens to be aware of such ongoing activities. It was made clear that this was all against the banking laws of the region. HKMA clarified that only licensed and registered banks are allowed to carry out deposit-taking services in the state.
Hong Kong’s Attitude towards Crypto Industry
Hong Kong’s government showed a liberal attitude towards regulating crypto assets last year. Since then many crypto firms are rushing to register themselves amid the rush of licensing process. New guidelines opened crypto trading to the public in addition to institutional investors, with regulators now responsible for ensuring compliance. Recently, Hong Kong’s SFC issued a warning about unlicensed exchange JPEX, flagging suspicious activities.
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