Hong Kong Announces AI Finance Regulation Guidelines

Hong Kong has announced its first set of guidelines for the ethical use of artificial intelligence (AI) in the financial sector, emphasizing consumer protection, data privacy, and transparency. These guidelines were unveiled at the Hong Kong FinTech Week, alongside a proposed tax break for digital assets to foster a supportive environment for AI and cryptocurrency investments. By adopting a 'dual-track approach', Hong Kong aims to balance innovation with regulatory compliance, involving sector-specific guidance from various financial regulators. Additionally, the Hong Kong Securities and Futures Commission plans to establish a consultative panel for licensed cryptocurrency exchanges to enhance transparency and community responsibility. Financial Secretary Paul Chan highlighted that further regulatory updates, including those for stablecoins and OTC trading, are anticipated. These initiatives are part of Hong Kong's broader strategy to reclaim its status as a leading financial hub in Asia by integrating AI and digital asset advancements responsibly.