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The HKMA collaborates with Cyberport to launch a generative AI sandbox, targeting fintech innovations in finance.
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Hong Kong’s central banking institution, the Hong Kong Monetary Authority (HKMA), launched a generative artificial intelligence (GenA.I.) sandbox for finance in collaboration with Cyberport, a state-run technology company.
HKMA announced the launch of the GenA.I. sandbox on Aug. 13 during FiNETech2 – Into the AI verse, an event dedicated to nurturing partnerships between financial institutions and AI solution providers.
A controlled environment for AI innovation
Hong Kong’s GenA.I. sandbox is a platform to test AI’s potential applications in finance, including risk management, anti-fraud, customer services and process re-engineering.
Carmen Chu, executive director at HKMA, explained that the GenA.I sandbox provides a controlled environment for financial institutions and technology companies to jointly experiment with generative AI applications and obtain specific supervisory feedback. She added:
“This new sandbox aims to overcome the “hard” and “soft” barriers to the adoption of GenA.I., that is, the demand for computing capabilities and the need for supervisory guidance.”
Explaining the initiative in further detail, Eddie Yue, the chief executive of the HKMA, said that the GenA.I. sandbox will empower banks to pilot their novel GenA.I. use cases within a risk-managed framework, supported by essential technical assistance and targeted supervisory feedback.
He further urged banks to “make full use of this resource” and adopt generative AI tools into their business processes.
identifying fintech use cases for generative AI
The HKMA recently conducted a training session for the local banking industry on practical AI adoption strategies. According to the announcement, the HKMA will draw insights from the GenA.I. Sandbox for good practices and latest developments.
The central bank of Hong Kong, HKMA, launched the FiNETech series on April 26 under the Fintech 2025 strategy to promote fintech adoption.
Related: Hong Kong to enhance digital asset regulation in 18 months
While HKMA promotes the adoption of AI in finance, the Securities and Futures Commission of Hong Kong (SFC) continues its crackdown on unlicensed cryptocurrency exchanges.
In July, the Hong Kong SFC issued alerts against seven crypto trading platforms for illegally operating in the region.
According to the warnings, most of these exchanges used extortion techniques, such as blocking withdrawals and demanding “fees” to resume operations.
Magazine: How Chinese traders and miners get around China’s crypto ban
This article first appeared at Cointelegraph.com News
