Customers of Mox Bank, an online-only Chinese bank, took to social media to air their complaints about the frozen accounts. The bank blocked their accounts as a result of the cryptocurrency transactions.
According to reports, the accounts of users of Chinese virtual bank Mox Bank who engaged in cryptocurrency transactions have been frozen. Users are also considering filing a complaint with the Hong Kong Monetary Authority (HKMA).
User accounts suspended due to “security considerations”
The only information provided by the bank was “security considerations”. Users eventually saw their accounts unblocked, though this took several days. When the media questioned Mox Bank answeredAnd
“…we review individual customer accounts according to the existing system as one of our measures to protect customers’ rights… customers will continue to use the account after the review is complete… Also, this incident has nothing to do with data breaches.”
Mox Bank clients resorted to posting posts on social media to get the company’s attention. Many complained that they were being held for a week without getting their money.
As an online bank, there is no specific branch that users can visit to register a complaint. This made it difficult for them to expedite the repeal of the ban. Calling customer service didn’t help much, according to posts on social media.
It’s a strange development, given that Hong Kong has been opening up to the cryptocurrency market. Entities in mainland China are steadily offering more crypto services to the region.
MOX Bank, which is backed by Standard Chartered, is an online-only bank with no physical branches. As a digital bank, it is popular with users due to its quick and easy registration process, which only takes minutes to complete. The bank is only available in Hong Kong.
The bank was launched in 2020 and is backed by Standard Chartered, HKT, PCCW, and Trip.com – all major names in Asia. Among its offerings are Personal Accounts, Mox Card, Smart Savings Earnings features, Mox Credit, and Smart Borrowing.
The Hong Kong Monetary Authority communicates with MOOX Bank
HKMA provided some clarity on Mox Bank’s situation, with a spokesperson for the agency saying it was aware of the situation. I have instructed the bank to follow up on the matter and ensure that customers do not have any problems.
HKMA has been busy over the past few years, working on crypto regulation, among other things. In early 2022, I asked for comments on the crypto regulation paper.
Later that year, HKMA and the Bank of Israel began work on a Central Bank Digital Currency (CBDC) test project. It is also working with the Chinese central bank on the Digital Yuan project.
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