Hong Kong to Propose Stablecoin Regulation and AI Policy in Finance

According to Odaily, Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, announced plans to introduce a bill regulating stablecoin issuers to the Legislative Council within this year. This move aims to establish a clear regulatory framework for stablecoins, which are digital currencies pegged to traditional fiat currencies. The initiative is part of a broader strategy to enhance the financial market's stability and security. In addition to stablecoin regulation, the Hong Kong government is focusing on the responsible application of artificial intelligence (AI) in the financial services sector. Last month, a policy declaration was issued outlining the government's stance and guidelines on AI usage. This policy aims to foster innovation while ensuring that AI technologies are applied responsibly and ethically, thereby accelerating the development of new productive capacities tailored to local needs. Furthermore, efforts are underway to broaden the application of tokenization technology in the capital markets. The government plans to optimize various aspects of the mBridge project platform and expand participation from both public and private institutions. This initiative is part of a larger effort to integrate tokenization into the financial system, enhancing efficiency and transparency. The government is also committed to advancing the development and standardization of systems related to the tokenized market through the Ensemble project. This project aims to establish industry standards and improve the infrastructure necessary for a robust tokenized financial ecosystem. These efforts reflect Hong Kong's dedication to maintaining its position as a leading global financial hub by embracing technological advancements and regulatory innovations.