HONG KONG – Hong Kong outlined its first policy guidelines dedicated to the use of artificial intelligence (AI) in finance and floated a tax break for virtual assets, part of efforts to promote itself as an Asian business center.
On Oct 28, government officials touted a common framework through which different regulatory agencies can craft policy governing the use of AI, considered key to the future of finance and other sectors. They also proposed the extension of a tax break on the ownership of digital assets such as cryptocurrencies, promising legislation by the end of the year.
Hong Kong is keen to burnish its credentials as Asia’s go-to centre for financial services. It wants to win back investors who’ve fled the city’s markets in the face of heightened US-Chinese tensions, while embracing next-generation technologies from crypto to AI.
“Hong Kong’s financial sector has what it takes to promote AI adoption – sizable markets and rich scenarios,” Secretary for Financial Services and the Treasury Christopher Hui said in a keynote speech during Fintech Week, the city’s annual flagship industry event.
The city recognises the unique risks and opportunities brought by AI, and will take a dual-track approach to promote development while addressing challenges, Mr Hui said.
Regulators across banking, securities, pensions and insurance and audit will now provide their own circulars about AI regulations in the financial sector, he added.
Hong Kong’s move comes as governments, businesses and consumers around the world grapple with AI’s potential. One factor complicating matters is that the city sits squarely in the middle of a broadening US-China technology conflict.
Many consumers in Hong Kong cannot easily access some of the most popular AI services, such as OpenAI’s ChatGPT and Google’s Gemini, because the US tech giants don’t make them available locally.
Meanwhile,
