Key developments in Hong Kong SAR
- The Office of the Privacy Commissioner for Personal Data (PCPD) in Hong Kong has issued a new model framework to provide guidance for organisations procuring AI solutions from third party vendors and using personal data to customise or operate the AI systems in establishing an AI governance framework, and complying with the Personal Data (Privacy) Ordinance.
- The Hong Kong Institute for Monetary and Financial Research has published comprehensive applied research reports on Decentralised Finance and the Metaverse, discussing current applications and the regulatory landscape, and growth opportunities in the virtual asset ecosystem for the financial industry. The insights are intended to guide policymaking and innovation to improve Hong Kong’s digital financial infrastructure.
- The Banque de France (BDF) and the Hong Kong Monetary Authority (HKMA) have announced a partnership to explore wholesale central bank digital currency (CBDC) applications, to study interoperability between their wholesale CBDC infrastructure (i.e. BDF’s DL3S and HKMA’s Project Ensemble Sandbox), focusing on cross-border and cross-currency payment systems. The initiative aims to optimise settlement efficiency for cross-border transactions and support the development of global digital currency solutions.
Key developments in Mainland China
- The Guangdong Provincial Government issued on 24 June the “Implementation Opinions on Building a Data Basic System to Promote High-Quality Development of the Data Element Market.” This initiative sets out high-level plans for the construction of the data property rights system, as well as the circulation and trading, revenue distribution, and governance system of data elements, and for utilising data elements to empower high-quality development and promote data collaborative development in the Guangdong-Hong Kong-Macao Greater Bay Area.
- China proposed technical standards on generative AI services security. China’s National Cybersecurity Standardisation Technical Committee (also known as TC260) issued a set of draft national standards on Basic Security Requirements for Generative Artificial Intelligence Services in late May, for public consultation until 22 July. The proposed guidance focuses on how to fulfil various security requirements when deploying GenAI products and services within the framework introduced by China’s seminal first GenAI regulation effective in August last year.
If you are interested in further insights on key updates on fintech and payments in Hong Kong and Mainland China, or would like to hear from Linklaters on these trends and developments, do feel free to reach out to us at linklaters@sandpipercomms.com.
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