The Hong Kong police have initiated an investigation into Hounax, a cryptocurrency trading platform, after 131 individuals reported losing a total of HK$120 million (US$15.4 million) in what is suspected to be a fraudulent scheme. This news was initially reported by South China Morning Post. The victims, ranging in age from 19 to 78, include a 69-year-old retired woman who reportedly lost HK$12 million. Chan Wai-kei, a superintendent with the Hong Kong police’s commercial crime bureau, explained that the alleged scam involved luring investors to put money into cryptocurrencies through Hounax. However, when these investors attempted to withdraw their funds,…

The Hong Kong Exchanges and Clearing Limited (HKEX) has signed a Memorandum of Understanding (MOU) with the China Beijing Green Exchange (CBGEX) for green finance and sustainable development. The agreement aims to foster cooperation in various areas, notably in building an ESG ecosystem, enhancing green finance, and supporting the green development of the Belt and Road Initiative. This partnership marks a strategic move by both exchanges to focus on cross-border sustainable development. It addresses the growing demand for green infrastructure investments in China and the country’s transition towards a low-carbon economy. The collaboration will include research in green and transition…

After years of sustained development, the growth of Hong Kong’s fintech industry is stalling, with business formation slowing down and startup funding plummeting to pre-COVID-19 levels, a joint research report by industry trade group, the Fintech Association of Hong Kong (FTAHK), and Hong Kong consulting firm, Fintech Consult, reveals. Findings from the research, which is based on a study of the Fintech Consult database of Hong Kong’s fintech companies, show that the city was home to 508 companies as of October 31, 2023, representing a mere 1.2% growth from 2022 with 502 companies, a rate unseen during the past two…

Standard Chartered’s China division has joined the digital renminbi business pilot, making it one of the first foreign banks to do so. Standard Chartered, in collaboration with City Bank Clearing Services, announced the introduction of exchange services for China’s central bank digital currency (CBDC), the digital yuan or e-CNY. This initiative aims to provide Standard Chartered’s customers access to the digital yuan’s interconnection platform, facilitating essential functions like recharge and redemption services. This strategic step is also part of the bank’s broader effort to engage with emerging digital financial technologies. The digital yuan has already made significant strides in digital…

The Hong Kong Monetary Authority (HKMA) has rolled out the Suspicious Proxy ID Alert for the Faster Payment System (FPS). This initiative, launched on 26 November, enhances the system’s security by alerting users to potential fraud risks when conducting transactions using FPS proxy IDs, such as mobile phone numbers, email addresses, or FPS Identifiers (FPS IDs). This Suspicious Proxy ID Alert development results from a collaborative effort involving the HKMA, the Hong Kong Police Force (HKPF), Hong Kong Interbank Clearing Limited, and various industry players, including banks and Stored Value Facility (SVF) operators. The alert mechanism utilises data from the…

Bigtech companies such as Alibaba, Meta and Tencent, are rapidly expanding their presence in the financial services sector. This increasing influence presents opportunities to improve financial inclusion but also brings challenges relating to market dominance and price, as well as privacy issues, a new report by the Bank for International Settlements says. The report, titled “Bigtechs in Finance”, explores the rise of tech giants in the financial industry and its implications, both positive and negative. According to the report, bigtechs’ footprint in the finance sector is expanding at a fast pace and their activities have attained macroeconomic significance in several…

South Korea is preparing to launch a pilot programme for a central bank digital currency (CBDC) involving 100,000 citizens, as reported by The Korea Times. This initiative, planned for the fourth quarter of next year, is a collaborative effort between the Bank of Korea (BOK) and financial authorities including the Financial Services Commission (FSC) and Financial Supervisory Service (FSS). Selected individuals will have the opportunity to use deposit tokens. These tokens, issued by commercial banks in the form of a CBDC, will function similarly to vouchers, enabling participants to purchase goods. The selection process for participants will be conducted by…

The Securities and Futures Commission (SFC) of Hong Kong has initiated legal proceedings against AMTD Global Markets Limited, now known as Orientiert XYZ Securities Limited, and several of its former executives. This action, initiated at the Court of First Instance, seeks to address the company’s and its former leaders’ failure to comply with regulatory notices during investigations into initial public offerings (IPOs) in which they were involved. The investigations by the SFC centered around allegations of deceptive practices and providing misleading information in IPOs. AMTD, in its roles as bookrunner, lead manager, and underwriter, was implicated in these activities. The…

The Hong Kong Monetary Authority (HKMA), in collaboration with the Hong Kong Association of Banks (HKAB) and various banking institutions, has endorsed the establishment of the Anti-Deception Alliance (ADA) by the Hong Kong Police Force (HKPF) to fight against financial fraud. Launched on 24 November, this initiative is set to enhance the anti-money laundering infrastructure’s ability to identify, disrupt, and deter scams. The ADA represents a continuation of the longstanding partnership between the HKMA, HKPF, and the banking industry, aimed at safeguarding the financial system and the community from fraud and financial crimes. This alliance will improve the functionality of…

Tokyo-based financial institution SBI Holdings has entered into a strategic partnership with Circle Internet Financial, a global fintech firm and sole issuer of USD Coin (USDC). The collaboration, formalised through a Memorandum of Understanding (MOU), aims to facilitate the circulation of the USDC stablecoin, enhance banking relationships, and promote Web 3.0 services in Japan. This initiative follows the Japanese government’s recent amendment to the Payment Services Act on 3 June 2023, which introduces regulations for stablecoins to support the country’s transition towards a Web 3.0 economy. The revised act emphasises the use of “collateralised” stablecoins backed by legal tender. Circle’s…

Insurlog, a provider of last-mile delivery insurance for e-commerce enterprises in Vietnam, has joined forces with OneDegree Global’s insurtech division IXT. This collaboration aims to offer businesses a comprehensive and integrated solution to mitigate risks along the supply chain. Through this partnership, Insurlog plans to utilise IXT’s technology to offer embedded logistics insurance products that cover risks like loss, damage, or delays in transporting goods. The alliance is expected to lead to more efficient claim processing for Insurlog’s clients. “We are excited to partner with IXT to offer our customers embedded logistics insurance products. The IXT modern core solutions…

Hong Kong’s ZA Bank has received regulatory clearance from the Securities and Futures Commission (SFC) to expand its services. This approval amends the bank’s existing license, allowing it to move beyond dealing in collective investment schemes. ZA Bank is set to introduce U.S. stock trading services following the successful completion of its pilot trial. This new offering will enable ZA Bank’s customers to invest in a variety of U.S. market instruments, including stocks, ETFs, and ADRs, via the bank’s app. The bank said that it aims to provide these services with reduced fees as well as instant investment account openings…

The Hong Kong Monetary Authority (HKMA) and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) have singed a MoU to step up their fintech cooperation. This agreement aims to enhance the ongoing partnership, focusing on cross-border trade-related data exchange and business collaboration in fintech and data-driven financial services. The MoU, signed by Colin Pou of the HKMA and Wai Lum Kwok of the FSRA, marks a significant step in the relationship between the two regulatory bodies, building on a co-operation agreement established in 2018. Key initiatives under the MoU include exploring joint Proof-of-Concept projects linking the…

South Korean electronics retailer LOTTE HIMART has partnered with international insurtech company bolttech to introduce a home appliance switching service. The new service is available for an annual subscription fee starting at US$30, with the option of an extended three-year warranty from the date of purchase. This service, powered by bolttech’s insurance technology, is designed to offer a convenient, digital means for customers to replace electronics bought from LOTTE HIMART’s online and physical stores. Accessible via a specialised online portal, the service promises a streamlined digital experience for customers seeking to replace their mobile phones, tablets, laptops, and PCs. Each…

Cryptocurrency exchange OKX Hong Kong Limited has submitted an application for a virtual asset trading platform (VATP) license with the Securities and Futures Commission (SFC) of Hong Kong. The SFC had previously announced that it will publish the names of VATPs that have applied for a license in the wake of the JPEX fiasco in a bid to alert investors at an earlier stage in a bid to be transparent. The exchange was one of the first to declare interest to apply for the retail crypto license when the Hong Kong regulator announced plans to regulate the space. The application…

The Dubai Financial Market (DFM), Nasdaq Dubai, and the Shanghai Stock Exchange (SSE) have recently signed a Memorandum of Understanding (MoU) to enhance cooperation between the financial markets of Dubai and China. Announced on 20 November 2023, this agreement represents a significant step in fostering cross-border collaboration in the financial sector. Under this partnership, DFM, Nasdaq Dubai, and SSE aim to exchange knowledge, expertise, and information, thereby improving efficiency and transparency in both markets. A key focus of this collaboration is the development of financial products that are relevant to both markets. This includes the creation of indices, Exchange Traded…

Hong Kong’s WeLab, in collaboration with Astra Financial, has launched Bank Saqu in Indonesia, marking its second digital banking venture in Asia. This new digital banking platform, operated by PT Bank Jasa Jakarta (BJJ), a joint venture between the two companies, aims to cater to the growing solopreneur market in Indonesia. Bank Saqu primarily targets young entrepreneurs, including small business owners and freelancers, with features tailored to their financial needs and challenges. One of the standout features of Bank Saqu is the ‘Saku’ or Pocket, which allows users to create up to 20 customised sections within the app for managing…

Mastercard NUCC, a joint venture between Mastercard and NetsUnion Clearing Corporation, has been issued a bank card clearing license by the People’s Bank of China (PBOC). This development follows a thorough review process in line with the State Council’s decision and the National Financial Regulatory Administration’s standards. The granting of this license allows Mastercard NUCC to facilitate the issuance and acceptance of Mastercard RMB bank cards in China. “Going forward, the PBOC will continue to uphold the principles of openness, fairness and impartiality, and handle market access for bank card clearing institutions in accordance with the law and in an…

The Hong Kong Monetary Authority (HKMA) has expressed its support for the newly launched pilot programme, “Credit Data Smart”. This initiative, announced by key banking and financial industry associations on 17 November, is part of the broader “Fintech 2025” strategy aimed at advancing Hong Kong’s financial technology infrastructure. “Credit Data Smart” aims to introduce multiple consumer credit reference agencies (CRAs) in Hong Kong through the Credit Reference Platform. This approach is expected to foster competition in the consumer credit reference services sector, enhance service quality, and reduce operational risks associated with relying on a single service provider. The programme is…

Hong Kong is working towards further integrating the digital yuan (e-CNY), unveiling last week a number of new initiatives designed to increase support of the central bank digital currency (CBDC) in the city. At the same time, the government is pursuing its own digital Hong Kong dollar plans and moving forward in its e-HKD Pilot Programme. At the 2023 Hong Kong Fintech Week taking place in the city from October, 30 to November 05, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury (FSTB), announced several initiatives designed to support and promote the usage of the e-CNY scheme…