Monetary Authority remind public to be vigilant against cryptos

The Monetary Authority of Macau (AMCM) has reiterated that virtual currencies are not legal tender in Macau, nor can they be treated as financial instruments. Accordingly, the entity reminds the public to “remain vigilant [as] virtual currencies might involve fraud, or might even be used for illegal activities.”

An alleged cryptocurrency scam has affected more than 70 local residents and resulted in the potential loss of more than HKD13 million, after Hong Kong and Macau partners allegedly recruited investors during a series of business seminars in late 2017.

The Macau residents invested a combined HKD20.1 million in the cryptocurrency business, but have only managed to recover HKD6.3 million to date.

The AMCM has explicitly required all banks and payment service institutions in Macau not to participate in or provide, whether directly or indirectly, any financial services that involve the use of virtual currencies or virtual commodities as the means of payment.  It has restated that the provision of regulated activities, for example foreign exchange transactions, cross-border fund transfers, or trading platforms for financial activities, without proper authorization constitutes a violation of the Financial System Act.

Though cryptocurrency businesses are legal in the private sector, on previous occasions, the Monetary Authority of Macau has said that it does not “approve” of them in general and wants to “curb their occurrence.”

The AMCM has established a closely collaborative mechanism with the Judiciary Police to combat illegal financial activities and called attention to the potential risks involved.