Hong Kong has introduced its inaugural policy guidelines specifically tailored to regulate the utilization of Artificial Intelligence (AI) in the realm of finance, while also proposing a tax incentive framework for virtual assets; all part of a strategic initiative to reinforce its standing as a pivotal business hub in Asia.
Government officials revealed a unified framework enabling various regulatory bodies to formulate policies governing the application of AI, recognized as pivotal to shaping the future dynamics of finance alongside other sectors.
Additionally, they put forth the suggestion of extending tax relief on the possession of digital assets like cryptocurrencies, with a commitment to enacting legislation by the year-end.
Eager to enhance its reputation as Asia’s preferred destination for financial services, Hong Kong seeks to attract back investors who withdrew from the city’s markets amidst escalating US-China tensions, while simultaneously embracing cutting-edge technologies spanning from cryptocurrency to AI.
During Fintech Week, an esteemed annual industry event, the Secretary for Financial Services and the Treasury, Christopher Hui, highlighted Hong Kong’s robust financial sector capabilities conducive for fostering AI integration, citing extensive market opportunities and diverse scenarios.
Hui noted that as Hong Kong acknowledges the distinctive risks and prospects introduced by AI, the city is set to adopt a two-pronged strategy, focusing on advancing development while effectively navigating challenges. Regulatory bodies overseeing banking, securities, pensions, insurance, and audits will issue individual directives concerning AI regulations within the financial realm.
This initiative aligns with the global landscape where governments, enterprises, and consumers are navigating the potential of AI, though a complicating factor remains from the city’s strategic geographical position amidst the expanding technology conflict between the United States and China.
