Hong Kong official says issuing or operating stored value facilities without a license is illegal

Hong Kong will take enforcement action when needed against payment platforms that are registered only as fintech companies but do not hold any financial licenses, according to a report by Mobile Payment Network cited by ChainCatcher. Acting Secretary for Financial Services and the Treasury Joseph Chan said authorities would act under the relevant statutory regulatory framework to maintain financial stability and protect customers and the public. Under Hong Kong’s Payment Systems and Stored Value Facilities Ordinance, any person who issues or operates a stored value facility in Hong Kong without a license is breaking the law unless a statutory exemption applies. Chan said that when suspected unlicensed operations or other breaches of the ordinance are identified, the Hong Kong Monetary Authority will step in directly. Depending on the nature of the case, it may also work with other relevant regulators and, where necessary, refer the matter to law enforcement agencies.