Hong Kong SFC Chair Says City Will Expand Digital Asset Rules and Strengthen AI Oversight in Finance

Hong Kong will continue expanding its regulatory framework for digital assets and promote the use of artificial intelligence in financial services, Securities and Futures Commission Chair Julia Leung said at the Caixin Summer Summit. According to ChainCatcher, Leung said regulators plan to refine rules covering digital asset trading, custody, investment advisory services, and asset management, while applying a “same business, same risks, same rules” approach to balance innovation with investor protection. Leung added that as AI adoption accelerates in finance, supervisory priorities will include model reliability, algorithmic bias, data privacy, and cybersecurity risks. She said financial institutions should strengthen risk management as they innovate. She also said the SFC and other regulators have expanded the regulatory sandbox mechanism to allow financial institutions to test generative AI applications in a controlled environment, aiming to support compliant deployment.