The Hong Kong Monetary Authority (HKMA) is in talks with its counterparts overseas on cross-border oversight of stored-value facilities and retail payment systems, the Hong Kong Economic Journal reported Monday.
Officials are exploring exchange of information and looking into security and efficiency of the payment systems, the report said, citing Esmond Lee, executive director for financial infrastructure of Hong Kong’s de facto central bank.
Hong Kong is in the process of enacting a law to govern such payment systems, bringing the Hong Kong operations of Paypal, Alibaba’s Alipay and about 20 other institutions under HKMA supervision.
Lee said the legislation is aimed at preventing payment services providers from running non-payment businesses or selling financial products on their payment platforms.
The HKMA will submit a draft bill to lawmakers by the end of the year and expects legislation to be completed next year, the report said.
By the law, stored-value payment operators are required to establish entrusted accounts or bank guarantees to safeguard clients’ money.
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