Huo Xing Finance reports that on October 7, during a meeting of the Hong Kong Legislative Council, Legislator Chan Chun-ying submitted a written inquiry regarding the regulation of emerging payment platforms, to which Acting Secretary for Financial Services and the Treasury, Chan Ho-lin, provided a written response. The inquiry noted that in recent years, emerging aggregated payment platforms have been targeting small merchants with low transaction fees and “buy now, pay later” models; some of these platforms have been involved in delayed payments and fraudulent deposits, and certain platforms are registered only as fintech companies without obtaining financial licenses, nor have they disclosed their partner institutions or operational details. Chan Ho-lin stated that the government, together with financial regulators, continues to monitor emerging payment models and takes enforcement actions within the legal framework. Following consultations with the Hong Kong Monetary Authority (HKMA) and the Customs and Excise Department, between January 2024 and September 2026, the HKMA received 16 complaints regarding suspected unlicensed issuance or operation of stored value facilities (SVFs); after investigation, one complaint was substantiated, with the complainant reporting no financial loss, and the HKMA is currently following up with the relevant company. The response emphasized that the HKMA regulates stored value facilities under the Payment Systems and Stored Value Facilities Ordinance; unless exempted by law, issuing or operating an SVF in Hong Kong without a license is illegal. Money service businesses involving currency exchange and cross-border remittances must obtain a license from the Customs and Excise Department unless exempted. Non-bank entities offering “buy now, pay later” services involving lending activities must obtain a moneylender license under the Money Lenders Ordinance. Suspected unlicensed or non-compliant cases are handled by the HKMA and may be referred to or coordinated with other regulatory authorities or law enforcement agencies.
Hong Kong Government Addresses Complaints Regarding Unregulated Payment Platforms
MarsBitShare
Summary
On October 7, 2026, Hong Kong’s Legislative Council received a written inquiry regarding unregulated payment platforms, with Deputy Secretary Chan Ho-lam confirming ongoing monitoring of risk-associated assets. From 2024 to mid-2026, the HKMA recorded 16 complaints, including one confirmed case involving unlicensed stored-value facilities. The response noted no financial losses, and enforcement actions are underway. The CFT laws and the Payment Systems and Stored-Value Facilities Ordinance remain central to the regulatory framework.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.