Hong Kong Monetary Authority Updates Digital Banking Regulations

According to Odaily, the Hong Kong Monetary Authority (HKMA) has released documents for the Legislative Council's Financial Affairs Panel briefing. The documents highlight that following the consultation summary published on October 14, 2024, the HKMA has issued revised guidelines for the recognition of digital banks and has gazetted these changes to implement the new naming conventions. Digital banks are required to adhere to the same regulatory framework as traditional banks. However, certain regulations will be adjusted based on the risk-based and technology-neutral principles to accommodate the business models of digital banks. Additionally, the HKMA's latest update as of October 25, 2024, indicates that there are currently eight registered digital banks in Hong Kong. These banks include Livi Bank Limited, Ant Bank (Hong Kong) Limited, Fusion Bank Limited, WeLab Bank Limited, Mox Bank Limited, PAO Bank Limited, Airstar Bank Limited, and ZA Bank Limited.