Hong Kong has issued a stern warning to payment platforms operating without required licenses, following the receipt of 16 complaints about suspected unlicensed stored value services between January 2024 and September 2026. According to the official Legislative Council reply delivered by Acting Secretary Joseph Chan on October 7, regulators will take enforcement action where necessary to protect customers and maintain financial stability. Of the 16 complaints received during the reporting period, investigators substantiated one case, whose complainant reported no monetary loss. The Hong Kong Monetary Authority (HKMA) is currently following up with the company involved and will decide on further action according to the case's progress.
Under the Payment Systems and Stored Value Facilities Ordinance, anyone issuing or operating stored value facilities in Hong Kong without a license commits an offense unless a statutory exemption applies. As reported by the Financial Services and Treasury Bureau, the HKMA will intervene directly in cases involving suspected unlicensed stored value operations or non-compliance with the Payment Systems and Stored Value Facilities Ordinance. The authority identifies multipurpose prepaid cards and electronic wallets as examples of stored value facilities, covering facilities that hold value for payments to the issuer and participating third parties, or for transfers between users. However, single-purpose facilities used only to buy goods or services from their issuer fall outside this licensing system.
For platforms offering currency exchange or cross-border remittances, the Anti-Money Laundering and Counter-Terrorist Financing Ordinance requires a Customs and Excise Department license unless an exemption applies. According to the government response, services ancillary to a licensed stored value operator's business represent one statutory exemption. For buy now, pay later services, banks remain under HKMA supervision, while other providers conducting lending business must obtain a money lender license under the Money Lenders Ordinance, with transactions subject to that law and license conditions.
In related digital payment developments, Anchorpoint has begun a phased HKDAP rollout for institutional distributors and professional investors, with the first phase covering cross-border payments, fiat conversion and settlement of tokenized real-world assets. As reported by crypto.news, HashKey Exchange joined the distribution network and completed its first HKDAP minting and redemption transaction. Anchorpoint, backed by Standard Chartered, HKT and Animoca Brands, received an HKMA stablecoin issuer license in April alongside HSBC. The government's stablecoin supervision requirements mandate that licensed issuers must hold eligible reserves, including bank deposits and high-quality liquid debt securities, with those reserves placed with Hong Kong banks.
The enforcement warning comes amid broader international concerns about unregulated payment platforms. According to the U.S. Treasury's Financial Crimes Enforcement Network, money services business registration does not certify legitimacy or constitute a license to operate in the United States. FinCEN warned that scammers sometimes submit false registration information and use their appearance in public databases to claim they have been vetted or approved. The agency directed users to the Nationwide Multistate Licensing System's Consumer Access search to verify state licenses and authorization, highlighting the global nature of regulatory challenges facing digital payment platforms.
