Hong Kong Advances AI and Virtual Asset Regulations

According to PANews, on November 14, Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, addressed the Legislative Council during the debate on the Chief Executive's 2024 Policy Address. Hui highlighted the government's commitment to advancing artificial intelligence (AI) and virtual asset regulations. During the recently concluded Hong Kong FinTech Week 2024, a policy declaration was made outlining the responsible application of AI in financial markets. This initiative underscores Hong Kong's strategic approach to integrating AI technologies while ensuring market stability and ethical standards. In addition to AI, Hui emphasized the sustainable development of virtual assets. The government plans to introduce a bill to the Legislative Council within the year to regulate the issuers of fiat-backed stablecoins. This move aims to establish a robust framework for stablecoin issuance, ensuring transparency and security in the digital currency landscape. Furthermore, the government is revising its proposals for regulating over-the-counter virtual asset trading services. The objective is to complete a second round of public consultation next year and propose a licensing regime for virtual asset custody service providers. These steps reflect Hong Kong's proactive stance in adapting to the evolving digital finance environment, balancing innovation with regulatory oversight.