Hong Kong’s AI Finance Policy Set to Shake Up Crypto, Trading, and Investment

Key Takeaways

• Regulators in Hong Kong are preparing to issue a statement on AI usage in the finance industry. 
• The statement is expected to encourage the adoption of AI within the sector.
• Individuals and organizations currently feel confused about AI policies.

Hong Kong’s government is preparing to issue a framework of guidelines on the ethical use of AI within the finance industry.

The move is expected to signal Hong Kong’s support for AI and could make way for the technology to be used in crypto, trading, and investment. 

Hong Kong’s AI Policy 

Bloomberg reported , citing sources close to the matter, that the Financial Services and Treasury Bureau is currently drafting its AI policy based on feedback from the industry.

Regulators are hoping to clarify their stance on AI usage in the region, as confusion has emerged following continued technology trade wars between the US and China.

Hong Kong residents and businesses are unable to access leading AI tools like OpenAI and Google. The blocking of ChatGPT  in the bloc has gone relatively unaddressed by the company, although many think it is due to unclear rules surrounding AI usage in the area. 

In a statement, a spokesman for the Financial Services and Treasury Bureau said: “The government and the financial regulators are closely monitoring market developments and global experiences in order to promote the responsible use of AI in the financial industry.

“The government will issue a policy statement later this year, setting out its policy stance and approach on the application of AI in the financial market.”

The statement is expected to be released during Hong Kong’s Fintech Week, which takes place at the end of October. 

What Will the Statement Achieve?

According to Bloomberg’s sources, the policy statement will bring in guidance from a range of banking and regulators. 

While broad in scope, the statement is expected to promote a positive attitude toward the adoption of AI applications in the industry, paving the way for individuals and businesses to utilize them.

AI’s Use in the Finance Industry 

The statement comes as the world is integrating AI into every facet of industry, with the finance sector at the forefront. 

In a Citigroup  report from June, the bank found that more than half of the jobs in banking could be replaced by AI.

Kate Leaman, chief market analyst at AvaTrade, told CCN that AI is completely reshaping the banking industry and changing how many key functions operate.

“One area seeing a major impact is trading, where AI is making processes faster, smarter, and more personalized,” Leaman said.

Adding: “AI-powered algorithms can sift through real-time data to spot trends and execute trades at the optimal moment, potentially boosting profits for traders.”

AI is also increasingly being used in the crypto space, enhancing aspects such as trading strategies, security, and fraud detection.

The wider acceptance of AI in Hong Kong could catalyze the usage of AI within the space, allowing traders to use machine learning algorithms to analyze volatile crypto markets and manage trades automatically.

About the Author

Kurt Robson

Kurt Robson is a London-based reporter at CCN with a diverse background across several prominent news outlets. Having transitioned into the world of technology journalism several years ago, Kurt has developed a keen fascination with all things AI. Kurt’s reporting blends a passion for innovation with a commitment to delivering insightful, accurate and engaging stories on the cutting edge of technology.

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