In an effort to strike a balance between innovation and accountability, the Hong Kong government has implemented a dual-track approach to incorporate artificial intelligence (AI) into its financial services industry. The Financial Services and Treasury Bureau (FSTB) of Hong Kong has launched this strategy, which aims to use AI’s potential for increased consumer satisfaction, security, and efficiency in the financial industry.
The FSTB emphasized how artificial intelligence (AI) may improve a number of financial tasks, including research, data analysis, risk assessment, fraud detection, and workflow automation. Hong Kong hopes to promote AI development in a way that optimizes advantages while reducing related dangers, such as employment displacement, cybersecurity issues, and intellectual property protection, by taking a dual-track approach.
In order to promote a healthy AI ecosystem, the FSTB underlined the significance of cooperation between the government, regulators, and financial institutions. In line with Hong Kong’s ambition to become a global leader in fintech, this collaborative framework seeks to promote the responsible usage of AI.
Furthermore, in November, the Securities and Futures Commission (SFC) will publish a circular outlining financial institutions’ responsibilities regarding AI. This covers rules for risk management, AI applications, and the administration of digital assets in the financial sector. Additionally, in collaboration with the Customs and Excise Department, the SFC intends to regulate over-the-counter (OTC) cryptocurrency transactions by offering a structured licensing system that guarantees a secure trading environment for cryptocurrency users in Hong Kong.
The strategy emphasizes Hong Kong’s dedication to supporting the growth of fintech through secure frameworks, clear regulations, and technological assistance. The dual-track strategy supports Hong Kong’s goal of being at the forefront of global finance by putting the financial sector in a strong position to take advantage of AI developments while mitigating possible hazards.
