Hong Kong to consult on protecting investors from AI-driven fake information
Hong Kong's Financial Secretary said the government will consult the market this year on a legal framework to protect investors from deepfake ads and false information driven by agentic AI. The move follows the expansion of generative AI sandbox testing to securities and insurance.
Hong Kong's Secretary for Financial Services and Treasury, Christopher Hui, said on 2 November that the government will consult the market this year on how to establish a legal framework to protect investors from being misled by false and fabricated information, as agentic artificial intelligence (AI) creates more such content.
Speaking at a Financial Technology Week event, Hui noted that the Financial Development Authority is studying the risks posed by agentic AI and possible countermeasures. He said generative AI sandbox testing has already been expanded from banking to the securities and insurance industries, stressing the need to cover all financial sectors, including mandatory provident funds.
Hui also said Hong Kong Exchanges and Clearing (HKEX) is preparing to launch a multi-asset tokenisation platform this year, initially for carbon credit trading. The platform will also include warehouse receipts from the London Metal Exchange (LME) warehouse in Hong Kong.
To promote sustainable development of the fintech industry, Hui emphasised the need for an appropriate regulatory system. He said the government plans to submit a bill to the Legislative Assembly by the end of this year to regulate advisory services, trading, custody and management of digital assets.