In the context of Hong Kong actively embracing Web3 and striving to build a global digital asset center, regulatory authorities have increasingly intensified their crackdown on unlicensed operations. On September 25, 2025, the Hong Kong Securities and Futures Commission (SFC) issued a stern warning, naming a platform called "BiyaPay" that is suspected of operating unlicensed securities trading services and claiming to have an office in Hong Kong. This incident once again sounded the alarm for compliance in the cryptocurrency market, reminding investors to be vigilant and aware of the potential risks of unlicensed platforms when choosing trading venues.
- The BiyaPay Incident: A Warning Against Unlicensed Operations
The Hong Kong SFC 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.
Unlicensed Operations: The SFC clearly stated that "BiyaPay" has never been licensed by the SFC and has never applied for any license from the SFC. According to Hong Kong law, operating securities trading or promoting related services to Hong Kong investors without a license is illegal.
Investor Risks: The SFC warned the public 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. The SFC has placed this platform on its warning list.
This incident reveals the challenges that fintech companies may face when entering the cryptocurrency field, especially in integrating stablecoins. For users and investors relying on BiyaPay's services, the SFC's warning may be chilling.
- Regulatory Storm: A New Era of Stablecoin Applications and Compliance Challenges
On September 18, 2025, BiyaPay was again placed on the SFC's warning list for suspected unlicensed operations, marking a new chapter in regulatory enforcement. This move is not merely a minor penalty but indicates that the Hong Kong cryptocurrency market may soon face significant volatility. This will have far-reaching implications for the operation of the stablecoin market, especially for companies like BiyaPay that are deeply integrated with stablecoins such as USDT.
Compliance as the Foundation: BiyaPay's journey provides a case study on how to properly integrate stablecoins. By lowering entry barriers and focusing on user trust, the company demonstrated how to make stablecoins accessible. However, after BiyaPay integrated stablecoins, the scrutiny from regulators sent a warning: compliance is not just hindsight but the cornerstone of sustainable operations.
Strategies for Fintech Startups: For those navigating these murky waters, staying ahead is crucial. Continuously monitor the regulatory environment and adjust your compliance plans as needed. Embracing compliance technologies, such as artificial intelligence and blockchain, can help automate key processes like transaction monitoring and customer due diligence. Establishing solid partnerships and a comprehensive compliance plan can make you more attractive to potential partners like banks. Understanding the regulatory landscape, where different regulators may have overlapping rules, is essential. Participating in regulatory sandboxes can provide a safer testing environment.
- The Path Forward: Leading a New Era of Stablecoins in Hong Kong
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 entry barriers, a clear regulatory framework can also enhance institutional trust and consumer confidence.
Adapting to Regulation: As the market matures, startups that can adapt to these regulatory requirements may find new application scenarios for stablecoins, such as stablecoin invoicing platforms or cross-border cryptocurrency payroll solutions. Companies that understand these nuances may find a path to success.
Technology and Trust: 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. By leveraging technology and building trust, they can navigate the complex market environment and seize opportunities.
Conclusion:
The Hong Kong SFC's identification of "BiyaPay" as an unlicensed operator once again emphasizes the importance of compliance in the virtual asset market. Against the backdrop of Hong Kong's active efforts to build a global digital asset center, regulatory authorities will continue to strengthen their crackdown on unlicensed operations to maintain market order and protect investor interests. For investors, it is essential to choose compliant platforms licensed by the Hong Kong SFC for trading and to be wary of the promotions of unlicensed platforms to avoid unnecessary losses. Ultimately, the future of stablecoins in Hong Kong and beyond will depend on whether fintech startups can continue to innovate while better adapting to the ever-changing regulatory environment. In this turbulent market, staying informed and adhering to regulations is key to thriving.
Related Reading: Hong Kong Monetary Authority: Offshore RMB stablecoins have not been issued in Hong Kong, beware of fake news and crypto scams
Original: “Hong Kong SFC Takes Strong Action, Identifies ‘BiyaPay’ as an Unlicensed Trading Platform”
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