Hong Kong plans to include virtual money in AML regulations and will launch a public consultation within this year.

The Financial Secretary of Hong Kong recently proposed in the new "Budget" to further improve Hong Kong's AML and counter-terrorist financing system. This measure may bring virtual money service providers as well as the jewelry, gemstones, and precious metals industries under regulatory scope. The government plans to conduct public consultations on these specific proposals within this year.

The Secretary for Financial Services and the Treasury pointed out that the Financial Action Task Force (FATF) conducted a comprehensive assessment of Hong Kong's AML and counter-terrorism financing system last year. Hong Kong became the first member region in the Asia-Pacific to successfully pass the organization's review, which is an important milestone. The government will refer to the recommendations in the assessment report to further optimize the relevant systems.

At the same time, in order to maintain the financial stability of Hong Kong, the authorities will continue to implement the latest international banking regulatory standards in accordance with the guidelines of the Basel Committee on Banking Supervision. These measures aim to reinforce Hong Kong's position as an international financial center and ensure that its regulatory framework is in line with international best practices.

These measures reflect the Hong Kong government's determination to strengthen financial regulation and prevent systemic risks. With the development of emerging financial technologies such as Virtual Money, it has become particularly important to improve the relevant regulatory framework. The upcoming public consultation will provide an opportunity for all sectors to discuss how to strike a balance between promoting innovation and strengthening regulation.