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In recent times, the consumer finance landscape has been enriched by innovative products that bridge the gap between traditional finance and the world of cryptocurrencies. RedotPay has been at the forefront of this evolution, and the introduction of the RedotPay credit card is a step towards modern financial inclusivity, by allowing users to spend their cryptocurrencies like fiat in everyday transactions. This product is designed to provide convenience and flexibility to our customers, enabling them to participate in the digital economy with ease.
Understanding that our product is relatively new in Hong Kong, we wish to take this opportunity to clarify the nature of RedotPay’s products and services, and the regulatory framework within which we operate.
Stored Value Facility Licence
We have been well advised that our current business activities do not require a Stored Value Facility (SVF) licence under the Payment Systems and Stored Value Facilities Ordinance of Hong Kong. This is because the cryptocurrencies of our customers, which are stored separately in the custodian wallets (either maintained by third-parties or under self-custody), are not used to settle the credit card balances immediately at the time of transaction. Rather, such cryptocurrencies are subject to pre-authorisation agreements from the customers and would be automatically applied to settle the credit card balances on a later payment due date. Given that the RedotPay credit cards do not function as “debit cards”, but are more akin to traditional credit cards, they are not Stored Value Facility in any shape or form.
Money Lender Licence
We would also like to clarify that as a credit card scheme operated on a globally recognised payment processing network, we are exempted from having to obtain a money lender licence under the Money Lenders Ordinance of Hong Kong. Nonetheless, the RedotPay group holds a valid money lender licence in Hong Kong, which is a testament to our commitment to be subject to a fully compliant regulatory framework for our blockchain technology enabled payment solutions business.
It has recently come to our attention that there are misunderstandings and unfounded concerns circulating on social media platforms regarding our RedotPay credit card. We intend to engage with the authors of these contents to assist them in understanding our products and regulatory compliance status. Meanwhile, we must protect our reputation and the interests of our customers. We reserve all our rights to take formal legal action against parties who intentionally defame or otherwise create or spread misinformation about us or our products. We recommend that our customers, no matter current or prospective, to contact us directly if they have any questions or concerns regarding RedotPay’s service offerings.
RedotPay is dedicated to transparency and is always willing to address any concerns or queries regarding our products and services. We are committed to fostering a healthy financial ecosystem where traditional and digital finance coexist and thrive. As a forward-thinking financial services provider, RedotPay is proud to offer products and services that not only meet the current needs of our clients, but also pave the way for the future of payment and inclusive finance. We invite everyone to join us in embracing this new era of digital economy with confidence and enthusiasm.
