Hong Kong will continue expanding its digital asset regulatory framework and support the use of artificial intelligence (AI) in financial services as it seeks to strengthen its position as an international financial centre, the chairman of the Securities and Futures Commission said.
Speaking at the Caixin Summer Summit, SFC Chairman Tim Lui said the regulator would pursue “responsible innovation,” balancing technological development with investor protection, market integrity, and financial stability.
Lui said Hong Kong was developing rules covering digital asset trading, custody, advisory services, and asset management as part of efforts to build a more robust regulatory framework for emerging financial technologies.
“The principle is the same business, same risks, same rules,” Lui said, according to a text of the speech published by the SFC.
The remarks underscore Hong Kong’s attempt to build a regulated virtual asset industry while maintaining oversight of risks linked to market conduct, custody, cybersecurity, and investor protection.
Lui also said artificial intelligence was becoming an important part of financial services, but warned that financial institutions must guard against risks, including unreliable outputs, model bias, data privacy concerns, and cyber threats.
The SFC and other Hong Kong regulators have expanded sandbox initiatives to allow financial firms to test generative AI applications in a controlled environment, he said.
Beyond digital assets and AI, Lui said Hong Kong should continue to broaden its capital markets by strengthening the fixed income, currency, and offshore renminbi markets, while preserving the competitiveness of its equity market.
He said regulatory certainty would be important as Hong Kong navigates geopolitical uncertainty, market volatility, and rapid technological change.
The SFC would act as both a market guardian and market facilitator, Lui said, adding that regulation should help create a predictable environment for innovation and capital formation.
