HONG KONG SAR, CHINA Law and Practice Contributed by: Angus Forsyth, Angus Forsyth & Co
venience to the customer who has not contacted the operator in advance of the expiry of the fixed term. The Communications Authority advice here is that if the customer wishes to continue using the service provided by the same operator after the expiry of the fixed term, then the customer should consider renew - ing the contract or signing a new service contract with the operator concerned.
advertisement generally requires the written consent of the service provider channel concerned. Internet service provider sites allow advertisement for the promotion of complex speculative virtual finan - cial products provided the advertiser is duly licensed by the Securities and Futures Commission of Hong Kong to provide automated trading services and a virtual asset trading platform licensed under the Anti- Money Laundering and Counter-Terrorist Financing Ordinance. The digital payment system constituted by crypto - currency is established by digital entries to an online database recording cryptocurrency funds transfer on the blockchain public ledger. Certain cryptocurrencies are not backed by any authorised currency system. An exception is the stablecoin or fiat-referenced stable - coin, which is pegged to a fiat currency such as the pound sterling or the US dollar. The service provid - ers of the trading operations of virtual assets in Hong Kong are required to be registered by the Securities and Futures Commission of Hong Kong. Some cryptocurrencies trading in Hong Kong are clas - sified as securities and therefore are required to be regulated by the Securities and Futures Commission (SFC); in the event of any breach of the SFC regu - lations on the trading concerned, aggrieved parties can seek assistance from the SFC regulator. There is currently no advertisement restriction at law upon the activity of cryptocurrency advertisement but very careful examination of a cryptocurrency advertise - ment may enable an investor to take action or report an offence under the Trade Descriptions Ordinance. The Financial Action Task Force, which is a body responsible for administering international standards aimed at preventing money laundering and terrorist financing, has issued an updated guidance for a risk approach to Virtual Assets and Virtual Asset Service Providers. The Virtual Asset can be represented as a digital value such as a “digital token”. If the digital token is a secu - rity token representing a security under the Securities and Futures Ordinance, then the operating trader in the security token requires a licence for Type 1 (deal -
8. Artificial Intelligence 8.1 AI and Advertising Content
There are no rules or guidance related to the use of artificial intelligence in connection with the develop - ment of advertising content apart from the generally applicable coverage of advertising content as indi - cated. 8.2 AI-Related Claims There are no special rules or guidance related to mak - ing claims that a product is developed through the use of AI, is powered by AI or has AI-related capabilities. 8.3 Chatbots There are no special rules or guidance related to the use of chatbots. 9. Web 3.0 9.1 Cryptocurrency and Non-Fungible Tokens (NFTs) Special rules or regulations in the jurisdiction of the Hong Kong SAR are as follows. Advertising, Marketing or Sale of Cryptocurrency Advertisement is generally allowed on social media service provider advertisements provided that the advertiser is promoting a cryptocurrency that is com - pliant with cryptocurrency service provider require - ments under the law. Dealers in cryptocurrency and other crypto-related products are normally kept aware of the development of legal controls and modify their terms and conditions accordingly, noting generally that advertisers are required to comply with relevant - ly applicable rules, regulations and guidelines. Such
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