Hong Kong says 16 complaints over suspected unlicensed stored-value payment activity led to one substantiated case

News Editor

2026-10-08 01:11:42

Hong Kong lawmakers raised questions on Oct. 7 over how the city regulates emerging payment platforms, including aggregator services that approach small merchants with low fees and buy now, pay later offerings. In a written reply to legislator Chan Chun-ying, Acting Secretary for Financial Services and the Treasury Joseph Chan said the government and financial regulators are continuing to monitor new payment models and take enforcement action within the statutory framework. According to the reply, after consulting the Hong Kong Monetary Authority and the Customs and Excise Department, the HKMA received 16 complaints between January 2024 and September 2026 involving suspected unlicensed issuance or operation of stored value facilities. After investigation, one case was substantiated. The complainant in that case did not report any financial loss, and the HKMA is following up with the company involved. The reply also set out the licensing boundaries for several business models. Stored value facilities are regulated under the Payment Systems and Stored Value Facilities Ordinance. Money service operators handling currency exchange and cross-border remittances must obtain a licence from Customs unless exempted. Non-bank institutions offering buy now, pay later services that involve lending activities must obtain a money lenders licence under the Money Lenders Ordinance.

At a Hong Kong Legislative Council meeting on Oct. 7, legislator Chan Chun-ying submitted a written question on the regulation of emerging payment platforms. Acting Secretary for Financial Services and the Treasury Joseph Chan issued a written reply.

The question said new aggregator payment platforms have emerged in recent years, reaching small merchants with low-fee offerings and buy now, pay later services. Some platforms were accused of delayed payments and false deposit records. It also said some were registered only as fintech companies, had not obtained financial licences, and had not disclosed their partner institutions or operating conditions.

Government says it is monitoring new payment models

Joseph Chan said the government and financial regulators are continuing to monitor emerging payment models and are taking enforcement action within the statutory framework.

After consulting the Hong Kong Monetary Authority and the Customs and Excise Department, the reply said the HKMA received 16 complaints from January 2024 to September 2026 involving suspected unlicensed issuance or operation of stored value facilities. After investigation, one case was substantiated. The complainant did not report any financial loss, and the HKMA is following up with the company involved.

Different services fall under different licensing regimes

The reply said stored value facilities are regulated by the HKMA under the Payment Systems and Stored Value Facilities Ordinance. Unless a statutory exemption applies, issuing or operating such facilities in Hong Kong without a licence is illegal.

Money services involving currency exchange and cross-border remittances must obtain a licence from the Customs and Excise Department unless exempted. Non-bank institutions that provide buy now, pay later services involving lending activities must obtain a money lenders licence under the Money Lenders Ordinance.

For suspected unlicensed or non-compliant cases, the reply said the HKMA handles them and may work with other regulators or refer cases to law enforcement agencies.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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