Hong Kong will take appropriate enforcement actions to crack down on unlicensed payment platforms as needed

On October 8, the Acting Secretary for Financial Services and the Treasury of the Hong Kong Monetary Authority, Stephen Chan, responded to the matter of some payment platforms registered only as fintech companies but did not hold financial licenses. He pointed out that in accordance with the current legal regulatory framework, corresponding law enforcement procedures will be initiated when necessary to ensure the stability of the financial system and effectively safeguard the interests of customers and the public. According to the Hong Kong Payment Systems and Stored Value Payment Instruments Ordinance, unless statutory exemptions are obtained, any unauthorized local issuance or operation of stored value payment instruments is an offence. The HKMA stated that once unlicensed operations or violations of the Payment Regulations are discovered, it will directly intervene in the investigation or coordinate with other regulatory agencies to handle the case based on the specific circumstances of the case, and transfer relevant cases to law enforcement agencies when necessary.