Hong Kong central bank warns against crypto firms using banking terms

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The Hong Kong Monetary Authority (HKMA) has issued a warning to cryptocurrency companies against using banking terms such as “deposit”, “withdrawal” and “credit”, as it could lead to consumer confusion. The HKMA issued the warning in response to a number of reports from the public that some cryptocurrency companies had been using banking terminologies and services, such as “deposits”, “withdrawals” and “credit”, to attract potential customers. The HKMA stated that such terms can lead to confusion among consumers, as they are usually associated with banking services. It also noted that such terms can give the impression that the services provided by the cryptocurrency companies are regulated and protected by the HKMA. The HKMA has called on cryptocurrency companies to be cautious when using banking terminologies and to avoid giving false impressions to consumers.