Customers of Mox Bank, a Chinese online-only bank, took to social media to air their grievances over frozen accounts. The bank had blocked their accounts as a result of crypto transactions.
According to reports, users of Chinese virtual bank Mox Bank who have dabbled with crypto transactions have had their accounts frozen. Users are also considering filing a complaint with the Hong Kong Monetary Authority (HKMA).
User Accounts Frozen Due to ‘Security Considerations’
The only information the bank offered was “security considerations.” Users did eventually see their accounts unblocked, though this took several days. When quizzed by media outlets, Mox Bank responded,
“…we review the accounts of individual customers according to the existing system as one of our measures to protect customer rights…Customers will continue to be able to use the account after the review is complete…Also, this incident has nothing to do with data breaches.”
Mox Bank customers have taken to making social media posts to get the company’s attention. Many have complained that they have been locked up for a week without access to their money.
As an online bank, there is no specific branch that users can visit to register a complaint. This has made it difficult for them to fast-track the unblocking. Contacting customer care hasn’t helped much, according to posts on social media.
It’s an odd development, given that Hong Kong has been opening up to the crypto market. Entities in mainland China have been steadily offering more crypto services in the region.
Mox Bank, which has been backed by Standard Chartered, is an online-only bank that has no physical branches. As a digital bank, it is popular with users for its quick and easy registration process, which takes only minutes to complete. The bank is only available in Hong Kong.
The bank was launched in 2020 and has the support of Standard Chartered, HKT, PCCW, and Trip.com — all major names in Asia. Among its offerings are personal accounts, a Mox Card, smart saving earnings features, Mox Credit, and smart borrowing.
Hong Kong Monetary Authority Reaches Out to Mox Bank
The HKMA has offered some clarity on the Mox Bank situation, with a spokesperson for the agency saying that it was aware of the situation. It has ordered the bank to follow up on the matter and ensure that customers would not have any issues.
Alongside Hong Kong, major countries around the world are actively working on regulating cryptocurrencies. However, these regulations come with both advantages and disadvantages. Take a look at our guide to learn more: Crypto Regulation: What Are the Benefits and Drawbacks?
The HKMA has been busy over the past few years, working on crypto regulation, among other things. In early 2022, it asked for comments on its crypto regulation paper.
Later that year, the HKMA and Bank of Israel began work on a Central Bank Digital Currency (CBDC) test project. It is also working with China’s central bank on a Digital Yuan project.
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