Mox Bank, an exclusively online bank based in Hong Kong, has taken the step of blocking certain user accounts that were previously associated with cryptocurrency transactions. Some affected customers have raised concerns, asserting that they have no involvement in digital currencies.
In response to the situation, Mox Bank has initiated a review process. However, dissatisfaction among users has prompted the submission of an official complaint to the Hong Kong Monetary Authority (HKMA), as reported by local news outlet HKET.
What exacerbates the matter is that some users claim this is the second time their accounts have been frozen within the past two weeks. In light of mounting pressure, the HKMA has directed the online bank to provide accurate and proper responses to all customers, ensuring that their concerns are appropriately addressed.
Mox Bank has stated that the affected accounts are presently under review, with a commitment to safeguarding customer rights, as per the local news report.
Notably, just last month, Hong Kong’s Securities and Futures Commission (SFC) granted Mox Bank, which is co-owned by Standard Chartered, PCCW, HKT, and Trip.com, a securities license. This license enables the financial institution to introduce US equity trading services to the region.
The freezing of accounts by Mox Bank serves as a reminder of the regulatory challenges surrounding cryptocurrency activities in various jurisdictions. While these measures are likely aimed at compliance with anti-money laundering and know-your-customer regulations, there is a need to strike a balance that ensures legitimate customers are not unfairly affected. As the review unfolds, affected customers will be eagerly awaiting a resolution that addresses their concerns and preserves the integrity of financial services in the digital age.