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【Hong Kong government responds to regulation of emerging payment platforms: HKMA received 16 complaints】October 7, at a meeting of the Hong Kong Legislative Council, legislator Chan Chun-ying raised a written question on regulating emerging payment platforms, and Chan Ho-lim, Acting Secretary for Financial Services and the Treasury, gave a written reply. The question noted that emerging payment aggregation platforms have appeared in recent years, approaching small merchants with low fees and “buy now, pay later” arrangements. Some platforms have defaulted on payments or recorded fictitious deposits, while some are registered only as fintech companies, have not obtained financial licences, and have not disclosed their partner institutions or operating conditions. Chan Ho-lim said the Government and financial regulators continuously monitor emerging payment models and take enforcement action under the statutory framework. After consulting the HKMA and Customs and Excise, 2024 years January to 2026 years September, the HKMA received 16 complaints concerning suspected unlicensed issuance or operation of stored value facilities; after investigation, 1 were substantiated. The complainants did not report any monetary loss, and the HKMA is following up with the relevant companies. The reply stated that the HKMA regulates stored value facilities 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 service businesses operating currency exchange and cross-border remittance services must, unless exempted, apply to Customs and Excise for a licence. Non-bank institutions providing “buy now, pay later” services involving lending activities must apply for a money lender’s licence under the Money Lenders Ordinance. Suspected unlicensed or non-compliant cases are handled by the HKMA, which may cooperate with other regulators or refer cases to law enforcement agencies.