Hong Kong plans to expand Virtual Money regulations and will initiate a public consultation this year.

The Financial Secretary of Hong Kong stated in the new budget that the government will further improve Hong Kong's AML and counter-terrorism financing system. This plan includes considering the inclusion of Virtual Money service providers, as well as the jewelry, jade, and precious metals industries, into the regulatory framework. The government plans to launch public consultations on specific proposals within this year.

The Secretary for Financial Services and the Treasury revealed that the Financial Action Task Force (FATF), an international financial regulatory organization, completed a comprehensive evaluation of Hong Kong's AML and counter-terrorism financing system last year. Hong Kong has become the first member jurisdiction in the Asia-Pacific region to successfully pass the organization's review, and the government will refer to the recommendations in the evaluation report for further improvements.

In addition, to maintain the financial stability of Hong Kong, the government will continue to follow the guidelines of the Basel Committee on Banking Supervision and implement the latest international banking regulatory standards. These measures aim to strengthen Hong Kong's position as an international financial center while ensuring that its regulatory framework is in line with international best practices.

This series of measures reflects the Hong Kong SAR government's high emphasis on financial security and regulatory innovation, and is expected to further enhance Hong Kong's competitiveness and influence in the global financial system.