Summary
Hong Kong is going all in on tech. Its putting all its major energy in AI and crypto to keep financial scene lit. With AI powered crypto friendly policies, the city’s making sure it stays a boss in the global game, setting itself to always stay on top.
The Hong Kong Monetary Authority (HKMA) did a complete breakdown of their strategy to position Hong Kong as a global financial hub. They will do so by capitalizing on emerging technologies, detailed in speeches on Monday by Paul Chan, Financial Secretary, and Christopher Hui, Secretary for Financial Services and the Treasury, at Hong Kong FinTech Week 2024.
Reportedly, Hong Kong is developing a unified regulatory framework that is set to provide clarity and consistency for financial institutions. This is all done to harness the power of AI. The main concern of this framework is to balance innovation with risk mitigation ultimately ensuring the development and deployment of AI technologies. Some local universities are actively developing on advanced AI models designed to serve the specific needs of the financial industry. These models will empower financial institutions to make data-driven decisions, enhance risk management, and improve customer experiences, Hui, secretary for financial services and the treasury of Hong Kong, said.
Additionally Hong Kong is also looking closely on cryptocurrency as the key driver of future growth. With its recent take down of fraud empire many people have restored faith in Hong Kong’s security. Hong Kong is making tax breaks to include investments in virtual assets, making the city an active market for crypto related businesses. This move also works together with their plan to embrace blockchain and cryptocurrencies. As of October 2024, only three virtual assets are being traded on Hong Kong- OSL Exchange, HashKey Exchange and HKVAX. Although the SFC has granted them an official license, the regulator stated that it is expediting the licensing procedure and anticipates awarding the first set of formal licenses to deemed-to-be-licensed VATP applicants by the end of this year.