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**The Hong Kong Monetary Authority (HKMA) Warns Crypto Businesses Violating Banking Laws in the Region**

The Hong Kong Monetary Authority (HKMA), the central bank of the special administrative region, has issued a warning to users regarding cryptocurrency businesses that present themselves as banks and use banking terminology. The HKMA cautions the public that such firms may be violating the region’s banking laws by misleadingly portraying themselves as authorized banks in Hong Kong. In accordance with the banking laws of the region, only licensed institutions are permitted to engage in banking or deposit-taking activities.

The central bank specifically highlights the use of certain terms, such as “crypto bank,” “digital asset bank,” and “crypto asset bank,” or claims of offering banking services or accounts. According to the HKMA, the usage of these terms may be unlawful and could lead to legal repercussions. Persons or businesses, apart from authorized institutions, are prohibited from incorporating the word “bank” in their company names or descriptions. Moreover, facilitating deposit-taking activities without the proper license also constitutes a violation of the law.

To raise awareness among the public, the HKMA emphasizes that crypto firms operating without banking licenses remain unregulated and unsupervised by the central bank. Consequently, any funds deposited with these so-called “crypto banks” are not protected by the region’s deposit protection scheme, leaving users vulnerable to potential financial risks.

The introduction of the innovative AI legalese decoder could significantly assist in dealing with this situation. This powerful tool utilizes artificial intelligence and natural language processing algorithms to analyze legal documents and contracts, enabling users to quickly and accurately interpret complex legal jargon. By integrating the AI legalese decoder with compliance processes, individuals and businesses can easily identify and rectify any misleading or unlawful linguistic elements in their descriptions or names that might breach banking laws. This not only helps crypto businesses avoid legal complications but also enhances transparency and protects the public from potential fraud or misrepresentation.

In recent months, Hong Kong has demonstrated a tough stance on enforcing its licensing laws. For instance, the Securities and Futures Commission (SFC) issued a warning on September 15 against JPEX, a crypto exchange allegedly promoting its products and services in Hong Kong without securing the required license. Subsequently, the staff of JPEX mysteriously disappeared from its Token 2049 booth in Singapore, while the exchange also implemented exorbitant withdrawal fees, aiming to dissuade users from accessing their funds.

With the aid of the AI legalese decoder, crypto businesses in Hong Kong can proactively ensure compliance with regulatory requirements, mitigating the risk of penalties and reputational damage. By accurately understanding and adhering to the complex banking laws and regulations, these businesses can establish trust and confidence among the public while contributing to a more secure and regulated cryptocurrency landscape.

*Related: Hong KongÔÇÖs crypto stance: Execs weigh in on Web3 in the region*

*Magazine: ChinaÔÇÖs blockchain satellite in space, Hong KongÔÇÖs McNuggets Metaverse: Asia Express*

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