Hong Kong – FinTech Ranking

Hong Kong Launches CBDC Trials With 16 Firms

Elena Kondrashkina — Thu, 18 May 2023 22:39:00 +0000

The Hong Kong Monetary Authority (HKMA) today (18 May) announced the commencement of the e-HKD Pilot Programme. A total of 16 firms from the financial, payment and technology sectors have been selected to participate in the first round of pilots for 2023. The pilots will take deep dives into potential use cases in six categories, including full-fledged payments, programmable payments, offline payments, tokenised deposits, settlement of Web3 transactions and settlement of tokenised assets.

The e-HKD Pilot Programme is a key component of Rail 2 under the HKMA’s three-rail approach in paving the way for the possible implementation of a retail central bank digital currency (CBDC), i.e. e-HKD, in the future. Under the Pilot Programme, the HKMA will conduct a series of pilots in close collaboration with various stakeholders to examine the use cases, as well as implementation and design issues relating to e-HKD. Through this iterative process, the outcomes and insights gained from each pilot would help enrich the HKMA’s perspective and refine the HKMA’s approach to the possible implementation of e-HKD. The HKMA is not yet at a point where a firm decision can be made to introduce e-HKD.

Hong Kong regulator requires banks to open accounts for crypto firms

Elena Kondrashkina — Fri, 28 Apr 2023 19:40:00 +0000

The Hong Kong Monetary Authority (HKMA), the region’s central banking institution and regulator, has called on banks to provide services to cryptocurrency firms.

On April 27, the HKMA issued a circular related to the access of corporate customers to banking services. In the document, the regulator has required authorized institutions, referred to as “AIs,” to adopt a risk-based approach in Anti-Money Laundering efforts.

The HKMA also urged the institutions in Hong Kong to pay attention to market developments and take a forward-looking approach to new sectors like the crypto market.

Hong Kong Court Declares Crypto as Property in Case Involving Defunct Gatecoin

Elena Kondrashkina — Wed, 19 Apr 2023 21:48:00 +0000

A Hong Kong court has recognized crypto as property “capable of being held on trust” in a case involving shuttered crypto exchange Gatecoin, according to a court document reviewed by CoinDesk.

Global law firm Hogan Lovells first reported on the judgment on Wednesday.

In 2019, Hong Kong-based crypto exchange Gatecoin announced it will shut down and start liquidation following an attempt to recover disputed funds from a former payment services provider.

Hong Kong’s ZA Bank wants to be the go-to bank for crypto startups

Elena Kondrashkina — Thu, 13 Apr 2023 01:32:00 +0000

Hong Kong-based ZA Bank is now allowed to serve as the settlement bank for regulated web3 companies in the city, the company said today at Hong Kong’s web3 festival, an event that’s backed by the region’s government and has attracted crypto startups and institutions from all over Asia.

The online bank is set to facilitate crypto-fiat conversions in conjunction with two licensed exchanges in Hong Kong, HashKey and OSL, where customers can swap crypto into fiat currencies. In other words, the crypto-fiat conversion part is happening over the regulated exchanges rather than ZA Bank directly.

Hong Kong outlines upcoming crypto licensing regime

Elena Kondrashkina — Mon, 20 Feb 2023 23:53:00 +0000

Hong Kong’s Securities and Futures Commission (SFC) calls for public feedback on its newly proposed licensing regime for cryptocurrency exchanges set to take effect from June 2023.

A key consideration of the public consultation window is whether to allow licensed exchanges to serve retail investors in the country and what measures should be implemented to provide a range of “robust investor protection measures.“

The SFC announced the consultation process on Feb. 20, outlining a new licensing regime for the industry which proposes that all centralized cryptocurrency trading platforms operating in Hong Kong must be licensed with the regulatory body.

HKSAR Government’s Inaugural Tokenised Green Bond Offering

Elena Kondrashkina — Fri, 17 Feb 2023 01:06:00 +0000

The Government of the Hong Kong Special Administrative Region of the People’s Republic of China (the HKSAR Government) today (16 February) announced the successful offering of HK$800 million of tokenised green bond (the Tokenised Green Bond) under the Government Green Bond Programme (GGBP). This is the first tokenised green bond issued by a government globally.

Following a virtual roadshow earlier this week, the one-year, HKD-denominated Tokenised Green Bond was priced yesterday at 4.05%. It was distributed by a four-bank syndicate, two of which also act as investor custodians. The Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority (HKMA) is the clearing and settlement system for the bond, leveraging Goldman Sachs’ tokenisation platform – GS DAP^TM.

Hong Kong to Require Stablecoin Licensing as Early as This Year

Elena Kondrashkina — Tue, 31 Jan 2023 22:43:10 +0000

Hong Kong is set to demand mandatory licensing for stablecoin issuers and won’t allow algorithmic stablecoins, its top financial regulator said on Tuesday. Entities conducting regulated activity in Hong Kong will have to obtain a license to operate stablecoin services.

The Hong Kong Monetary Authority (HKMA) laid out its regulatory plans after receiving feedback on a discussion paper published last year. Based on the 58 responses it received, the regulator said it will set up a regime to supervise stablecoins, which are cryptocurrencies whose value is pegged to other assets.

WeLab acquires Bank Jasa Jakarta in Indonesia

Elena Kondrashkina — Tue, 07 Dec 2021 07:11:03 +0000

WeLab, a leading pan-Asian fintech platform, today announced the acquisition of PT Bank Jasa Jakarta (BJJ), a commercial bank in Indonesia, with plans to launch its second digital bank in Asia further to the successful launch of WeLab Bank in Hong Kong.

WeLab, headquartered in Hong Kong, has drawn wide-spread interest from existing and new investors who have already contributed US$240 million for this transaction, representing the largest fintech funding in Indonesia in 2021. The funds will be used to acquire the controlling stakes from its existing shareholders and tech investments.

Airwallex raises $100M at a $5.5B valuation

Elena Kondrashkina — Thu, 18 Nov 2021 10:28:49 +0000

Hong Kong and Melbourne-based Airwallex has raised $100 million capital that it will be using to continue building out its banking and payments businesses into more markets, and to invest expanding its products.

The funding — which is being led by Lone Pine Capital and joined by 1835i Ventures (the venture arm of ANZ, the Australia and New Zealand Banking Group) and Sequoia Capital China, all previous investors — is an extension to the company’s Series E that it announced only in September; and it brings the total of the round to $300 million.

Mox Bank Introduces Buy Now Pay Later Service

Elena Kondrashkina — Sun, 01 Aug 2021 16:47:00 +0000

Hong Kong-based digital bank Mox has introduced a new Buy Now, Pay Later (BNPL) service via its Mox Credit product, called “Split purchase.”

Mox Credit clients are able to split their eligible or qualified transactions of HKD 400 or more into more manageable, equal monthly instalments. The installment period can range from 3 to 36 months, the announcement noted.