A survey by the Hong Kong University of Science and Technology (HKUST) Business School found that more Hong Kong people prefer not to hold virtual assets, after the recent JPEX fiasco. The survey found that 41% of respondents prefer not to hold cryptocurrencies, up from 29% in a previous survey conducted before the JPEX incident. About 20% of respondents said they would like to hold cryptos in the future, down from 25% in the previous survey. The JPEX financial fraud, which is alleged to be the largest cryptocurrency scam in Hong Kong history, has shaken public confidence in the crypto…

Hong Kong’s BC Technology Group, the parent company of crypto trading platform OSL, has denied reports that it is considering selling the crypto platform for HK$1 billion (US$ 128 million). According to the Bloomberg report, OSL “may decide to sell parts of OSL rather than the whole business” but the discussions were still ongoing. The report also highlighted that OSL platform’s trading volume dropped by 50% in the past year while the company’s overall losses narrowed in the first half of 2023. The company released a statement on 17 October clarifying that the contents and statements in the Bloomberg article…

Consumers want to be able to access financial services seamlessly, without having to switch between different websites or apps. This presents an enormous opportunity for incumbent financial institutions and digital banks to step up their embedded finance offering to provide frictionless experiences. Bain Capital estimates the overall value of embedded finance to be US$3.6 trillion, laying the groundwork for financial institutions to unlock new revenue streams and grow their customer base. Leveraging embedded finance to bridge the financial inclusion gap Building an ecosystem of partnerships conducive for innovation Roadmap for the future of embedded finance Panelists: Arnost Micek, Chief Strategy…

Hong Kong’s BC Technology Group is reportedly considering selling its crypto platform OSL in a deal worth HK$1 billion (US$128 million), according to Bloomberg. According to the report, OSL’s parent company is considering selling parts of its crypto trading platform. OSL has been operating under an SFC license for over three years, primarily serving professional investors. In August, OSL received a license upgrade from the SFC to serve retail clients as well. The platform’s trading volume dropped by 50% in the past year while the company’s overall losses narrowed in the first half of 2023, but its share price is…

ZA Bank and Mox Bank, two of the eight digital banks from Hong Kong, have ranked in the top 10 of Sia Partners’ 2023 Mobile Banking Benchmark, a global study of mobile banking apps. Sia ranked ZA Bank as 6th in the benchmark, while Mox Bank ranked 10th. DBS Digibank Singapore also made the list, claiming 7th place. The benchmark assessed the performance of 148 banking applications in 19 countries across the EMEA region, North America, Asia and Australia. The banks were evaluated on more than 85 criteria, in 3 scoring streams which are functionalities (FX), user experience (UX), and…

The Office of the Privacy Commissioner for Personal Data (PCPD) has published an inspection report on the customers’ personal data system of ZA Bank, the first virtual bank in Hong Kong. ZA Bank was granted a virtual banking license by the Hong Kong Monetary Authority in March 2019 and became operational in March 2020. The inspection found that ZA Bank has generally complied with the requirements of the Personal Data (Privacy) Ordinance (PDPO) in the handling of customers’ personal data. PCPD noted that ZA Bank took measures such as implementing a paperless office, conducting drill exercises to prevent the threat…

Citi announced that it has agreed to sell its onshore consumer wealth portfolio in China to HSBC Bank. The transaction includes clients, assets under management (AUM) and deposits totaling approximately US$3.6 billion. The deal is expected to close in the first half of 2024. Terms of the transaction were not disclosed. The bank first announced its plan to exit China consumer banking in April 2021 as part of a broader global strategy refresh. Citi will continue to serve the needs of affluent to ultra-high net worth Chinese individuals through its regional wealth hubs in Singapore and Hong Kong. Citi has…

Hong Kong is home to a burgeoning fintech ecosystem that comprises over 800 fintech companies, among which startup unicorns the Amber Group, Babel Finance, Micro Connect and WeLab. The city boasts a high consumer fintech adoption rate, with 74% of Hong Kong residents reporting using at least two fintech services and over 90% of consumers having adopted digital payments, according to the 2023 PolyU-Asklora Fintech Adoption Index. The Hong Kong government and its regulatory bodies are big supporters of the sector, having proactively pushed initiatives and frameworks that encourage development, such as the Fintech 2025 strategy. As the fintech sector…

Travel company Trip.com has partnered with bolttech Insurance to offer travel insurance to its customers in Hong Kong. bolttech Insurance currently offers travel coverage on Trip.com’s mobile app, with plans to add home and pet insurance products in the future. The TravelCare insurance is available for a single trip or purchased as an annual plan. The in-app feature also provides policy documents immediately. It offers all-rounded protection ranging from leisure and amateur sport activities, mobile phone, trip delays and cancellation, as well as coverage of medical expenses due to COVID-19. Zhe Wang, Head of Global Payments and Insurtech at Trip.com…

Weibo, one of the China’s biggest social media platforms, has removed the accounts of 80 popular influencers promoting cryptocurrencies, citing breach of local laws put in place to curb speculative trading and the promotion of cryptocurrencies, the South China Morning Post reported. The Weibo accounts, which had more than eight million followers each, had infringed regulations covering areas such as marketing, Internet safety, telecommunications, trade and finance, the tech firm said in a statement. Weibo added that it would continue to “receive complaints from users” and initiate investigations on “illegal virtual currency trading information” in compliance with local laws. The…

Nuvei, the Canadian fintech company, has established a new operational hub in China, reinforcing its presence in the Asia-Pacific (APAC). Philip Fayer, Nuvei Chair and CEO commented, “We’re excited to announce our new office in China as we continue expanding in APAC. Our increased presence will provide APAC enterprises with local expertise and support as they explore new markets.” The fintech is already serving Chinese businesses with cross-border payment services and aims to extend its global reach further and enhance its regional support. This expansion aligns with Nuvei’s commitment to facilitating business growth in APAC, with recent achievements including acquiring…

The Securities and Futures Commission (SFC) recently launched multiple lists regarding virtual asset trading platforms (VATPs) on its website. This aligns with the SFC’s commitment to providing clear and transparent information to the public. Among the lists are licensed VATPs, including OSL Digital Securities Limited and Hash Blockchain Limited, and VATP applicants, such as Hong Kong BGE Limited and Victory Fintech Company Limited. The SFC also features a list of closing down VATPs and another showcasing VATPs presumed to be licensed by 1 June 2024. Additionally, a list pinpointing suspicious VATPs operating in Hong Kong has been introduced to protect…

The Hong Kong Exchanges and Clearing Limited (HKEX) announced that its new digitalised IPO settlement platform FINI will be launched on 22 November 2023. HKEX appears to have delayed the rollout of FINI from October. Earlier reports did mention that the exact launch date would be announced several weeks in advance and would be subject to market readiness. FINI will significantly shorten the time between the pricing of an IPO and the trading of shares from five business days to two business days. It will also introduce a new public offer pre-funding model to help reduce the scale of locked-up…

Thought Machine, a cloud-native banking technology company, has empowered Nikel, a fintech startup that unlocks credit for millions in Southeast Asia, to streamline its lending process and develop new products more quickly. Founded in 2018, Nikel which rebranded from Impact Credit Solutions, offers small businesses access to loans through their digitally embedded lending platform. They offer banks and other companies a digital lending solution covering everything from loan origination to underwriting to collections. With many small businesses moving online, they required bespoke loan products to meet their specific needs. Thus, in order to offer these products online, orchestration between many…

Hong Kong’s Securities and Futures Commission (SFC) will publish the names of virtual asset trading platform’s (VATP) that have applied for a license in the wake of the JPEX fiasco. The regulator will enhance and issue a dedicated list of suspicious VATPs which is easily accessible and with prominence on the SFC’s website. “The JPEX incident highlights the risks of dealing with unregulated VATPs and the need for proper regulation to maintain market confidence. It also shows that dissemination of information to the investing public through the Alert List, warnings and investor education can be further enhanced to help members…

The Hong Kong Monetary Authority (HKMA) has announced the Green Fintech Competition. The competition is open to green fintech firms in Hong Kong and around the world. Their solutions should be relevant to any of these four themes; net-zero transition or transition planning; climate risk management; green and sustainable finance; and sustainability or climate-related disclosure and reporting. Interested firms will need to submit a market-ready solution for at least one of the above themes by 20 October 2023. The judging panel will comprise representatives from both the public and private sectors, including the banking and technology sectors, professional associations and academia.…

Building on their experience from Project Evergreen, the Hong Kong Monetary Authority (HKMA) and the government are planning to work with the financial industry to conduct further tokenized bond issuances, a new report by the HKMA reveals. The government and central bank are currently in discussions with key market players about future propositions, which might include new features to enhance efficiency, expand investor reach, and pave the way for broader adoption in capital markets, the paper reads. Initiated in 2022, Project Evergreen is a pilot project aimed at leveraging distributed ledger technology (DLT) to enhance efficiency, liquidity and transparency in…

Beleaguered crypto exchange JPEX has allegedly applied for deregistration with the Australian Securities and Investment Commission, according to Cointelegraph. JPEX stated that all company members agree with the move, the company is no longer operating, its assets are less than AU$1,000, and it has no liabilities in the filing. So far 11 people have been arrested in connection with the case, including social media influencers Joseph Lam and Chan Yee, as the number of alleged victims now stand at 2,086 with losses amounting to HK$1.3 billion. Yet JPEX continues to cry foul saying that several telecoms service providers in Hong…

Global investment and trading platform moomoo announced the launch of its online brokerage business in Japan on 19 September 2023. Japanese investors can now trade approximately 7,000 US stocks and ETFs on the moomoo platform. They will also be able to trade over 30o selected US stocks and ETFs 24/7 soon. Having launched in Japan in October 2022, the Moomoo app offers market information, education tools and connects Japanese investors with a community of global peers. “We saw great interest in investing US stocks in Japan, especially the younger generation. With the launch of our online brokerage business, Japanese…

Know Your Customer, a regtech firm focused on business KYC verification, is now available on the Hong Kong Monetary Authority’s (HKMA) Commercial Data Interchange (CDI). The CDI is a consent-based financial data infrastructure. It enhances data sharing by facilitating financial institutions to retrieve enterprises’ commercial data, especially SMEs, from both public and private data providers. Know Your Customer’s solution will be able to provide seamless and automated access to the Hong Kong Companies Registry (HKCR) and Inland Revenue Department (IRD), as well as to a global network of official registries across over 130 countries worldwide. Compliance teams at banks and…