Recently, the Hong Kong Securities and Futures Commission (SFC) issued a warning, specifically naming "BiyaPay" as an unlicensed trading platform, claiming it offers stock trading services for Hong Kong and U.S. stocks and has an office in Hong Kong, but has never been licensed by the SFC. This incident has attracted widespread attention in the market. On September 26, 2025, BiyaPay quickly responded, clearly stating that the company has not yet obtained a stock trading license or a cryptocurrency trading license in Hong Kong, and solemnly declared that it does not provide related trading services to residents of Hong Kong. At the same time, BiyaPay disclosed its global compliance process, attempting to address regulatory concerns and demonstrate its determination to build a safe and transparent trading environment.
- BiyaPay Responds to "Unlicensed" Allegations: Does Not Provide Services to Hong Kong Residents
In response to the SFC's statement regarding "unlicensed" operations in Hong Kong released on September 25, BiyaPay made the following clarifications:
Acknowledgment of Unlicensed Status: BiyaPay clearly stated that the company has indeed not yet obtained a stock trading license or a cryptocurrency trading license in Hong Kong.
Compliance with Hong Kong Regulations: BiyaPay emphasized that the company strictly adheres to the relevant laws and regulations of the Hong Kong SFC.
Service Scope Declaration: BiyaPay solemnly declared that it does not provide stock and cryptocurrency trading services to residents of Hong Kong. This statement aims to clarify its business scope and avoid conflicts with local regulations in Hong Kong.
The Hong Kong SFC previously discovered "BiyaPay" through its social media monitoring platform and noted that the public in Hong Kong could access platform information and register accounts through BiyaPay's official website and social media accounts. The SFC has placed the platform on its warning list and reminded investors that since the platform is not regulated by the SFC, the protections available to investors are very limited, and they may even suffer total losses.
- Global Compliance Process Exposed: Multiple License Applications Underway
While responding to the Hong Kong SFC, BiyaPay detailed its global compliance process, attempting to demonstrate its determination to build a global compliance system:
Licenses Obtained: The company has obtained the Financial Service Provider (FSP) license in New Zealand.
Actively Applying:
A team has been formed in the United States, and they are actively applying for a U.S. Broker license.
Simultaneously advancing regulatory applications in multiple regions, including the EU MiCA and VASP licenses, New Zealand FMA license, Cayman SIBL securities investment business license and banking license, U.S. MTL (Money Transmitter License), and U.S. RIA (Registered Investment Adviser) license.
Investments and Equity Stakes: BiyaPay is also investing in and acquiring stakes in local Hong Kong securities and cryptocurrency-related licenses, aiming for future compliant operations in Hong Kong.
Future Strategy: BiyaPay stated that in the next 2-3 years, compliance construction will be its primary strategic direction. The company remains committed to the principle of prioritizing user asset security and will continue to increase compliance investments to create a safe, transparent, and sustainable trading environment for global users.
- Establishing BVI and Cayman Funds, Accelerating Development of BIYA Chain: Promoting On-Chain Trading of U.S. Stocks
In addition to actively advancing its global licensing layout, BiyaPay is also making technological and product arrangements:
Establishing Funds: BiyaPay is in the process of establishing BVI and Cayman funds.
Developing BIYA Chain: Accelerating the development of BIYA Chain to promote on-chain trading of U.S. stocks. This indicates that BiyaPay is not only focused on traditional securities trading but is also actively exploring the application of Web3 technology in the financial sector, particularly in the tokenization of RWA (real-world assets).
- Compliance Challenges and Opportunities in Crypto Fintech
BiyaPay's experience reminds us that the path to the widespread adoption of stablecoins is fraught with challenges. As regulatory scrutiny intensifies, fintech companies must prioritize compliance to maintain their competitive edge.
Maintaining a Competitive Edge: Continuously monitor the regulatory environment and adjust compliance plans as needed.
Embracing Compliance Technology: Artificial intelligence and blockchain can help automate key processes such as transaction monitoring and customer due diligence.
Building Strong Partnerships: A robust compliance plan can make companies more attractive to potential partners like banks.
Understanding the Regulatory Landscape: Different regulatory agencies may have overlapping rules. Participating in regulatory sandboxes can provide a safer testing environment.
Considering Costs: Compliance may seem burdensome, but it can establish long-term trust with customers and regulators.
Hong Kong's new regulatory framework presents challenges and opportunities for fintech startups looking to invest in stablecoins. While licensing and compliance requirements may create higher barriers to entry, a clear regulatory framework can also enhance institutional trust and consumer confidence.
Conclusion:
BiyaPay's response to the SFC's "unlicensed" allegations and its disclosure of global compliance efforts reveal the complex balance that crypto fintech companies must strike between pursuing innovation and adhering to regulations. In the context of Hong Kong actively building a regulatory framework for digital assets, any attempts to operate in gray areas will face severe crackdowns. For investors, choosing licensed and regulated platforms for trading is key to safeguarding their assets. The case of BiyaPay emphasizes that compliance is not merely an afterthought but the cornerstone of sustainable operations. In the future, only those fintech startups that can adapt to the ever-changing regulatory environment and strike a balance between user convenience and a firm commitment to local laws will be able to navigate the waves of crypto finance successfully.
Related Reading: Hong Kong SFC Takes Strong Action, Naming "BiyaPay" as an Unlicensed Trading Platform
Original Article: “BiyaPay Responds to Hong Kong SFC's 'Unlicensed' Allegations, Denies Offering Services to Hong Kong Residents”
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