Author: JML

Legal Challenges in Using Blockchain Technology in Securing Royalties for Artwork

By JML

The integration of Artificial Intelligence (AI) in art and creative sectors brings forth both opportunities and challenges, which calls for a thorough understanding of the legal framework to ensure compliance and safeguard intellectual property. This article delves into the role of blockchain in securing artwork royalties and its impact on taxation.

Virtual assets (VAs) and crypto-assets, synonymous terms, refer to digital assets issued or transferred through distributed ledger or blockchain technology. Blockchain technology emerges as a robust solution for safeguarding art by establishing a transparent and unchangeable record of ownership and provenance. By leveraging blockchain, artists can retain control over their work and receive royalties from subsequent sales through smart contracts, promoting fairness and transparency in the art market.

The use of means such as Non-Fungible Tokens (NFTs) are reshaping the balance of power, shifting it from intermediaries back to artists and creators. With blockchain’s incorporation in NFTs, tracking royalties and direct payments to artists become feasible, allowing for continuous benefit when their art is commercially disseminated. This alteration in business models within creative industries signifies a substantial change, offering artists ongoing compensation for their work.

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The Future of Hong Kong’s Regulation on Digital Asset Dealing and Custodian Services

By JML

Hong Kong’s new digital asset regulation regime is poised to foster a safe and resilient ecosystem for market participants. Hong Kong strengthens its position as a global leader in digital finance through new regulations designed to ensure the secure and transparent management of digital assets. On June 27, 2025, the Hong Kong Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Securities and Futures Commission (SFC) launched a public consultation on the  introduction of  licensing regimes for digital asset dealing and custodian services. These proposals build on existing frameworks for virtual asset trading platforms (VATPs) and stablecoins, reflecting the finance hub’s  cautious yet forward-thinking approach to fostering innovation while prioritizing investor protection. For businesses, particularly small and medium enterprises (SMEs), these regulations present compliance challenges alongside opportunities to thrive in a trusted and developed market.

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Financial Services Regulatory Update 2025/07/25

By JML
  • The Stock Exchange of Hong Kong Limited Clarifies Directors’ Training and Other Responsibilities under Enhanced Corporate Governance Regime
  • Hong Kong Securities and Futures Commission Publishes Takeovers Bulletin Allowing Exclusion of Leased Assets Not Analogous to Ownership in Property from Rule 11.1(f) of the Takeovers Codes
  • Hong Kong Inland Revenue Department Issues Guidance on Transitional Taxation Treatments for Re-domiciled Companies under Hong Kong’s New Re-domiciliation Regime
  • Hong Kong Securities and Futures Commission Announces First Active ETF Cross-Listing, Underscoring Hong Kong’s Status as Premier Asset and Wealth Management Centre
  • Hong Kong Securities and Futures Commission Launches Public Consultation on Legislative Proposal to Regulate Dealing in Virtual Assets and Proposed Regimes for Virtual Asset Dealers and Custodians
  • Hong Kong Securities and Futures Commission Implements New Position Limits for Key Exchange-Traded Derivatives on Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng TECH Index
  • Hong Kong Regains Global IPO Top Spot in First Half of 2025, According to KPMG and PwC Reports
  • China Securities Regulatory Commission Imposes Total Fine of RMB 30.8 Million on Former Listed Companies for Financial Fraud, Holding Cooperating Parties Accountable for First Time
  • Hong Kong Accounting and Financial Reporting Council Publishes 2024-25 Annual Report, Outlining Initiatives on Regulation, Governance, Development, and Organizational Effectiveness
  • Hong Kong Accounting and Financial Reporting Council Reprimands Wu Kam Shing for CPA Misconduct and Imposes HK$200,000 Penalty Following Insider Dealing Determination
  • Hong Kong Eastern Magistrates’ Courts Sentence Market Manipulators to Community Service for Up to 240 Hours
  • Hong Kong Securities and Futures Commission Obtains Disqualification Orders of Up to 10 Years Against Former Directors of Superb Summit International Group Limited
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Navigating Hong Kong’s Stablecoin Regulatory Framework

By JML

Stablecoins are digital assets pegged to fiat currencies or other stable benchmarks to maintain consistent value. Their rapid adoption has raised concerns over financial stability, consumer protection, and compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) obligations. Hong Kong has introduced a stablecoin regulatory framework to regulate issuers and operators. This framework requires licensing, full reserve backing, consumer protection measures, and addresses cross-border issues. It includes transitional arrangements for existing operators.

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How to Optimize International IP Licensing within an International Group of Companies

By JML

In a globalized business environment, intellectual property (IP) is one of the most valuable assets for multinational enterprises (MNEs). The ability to strategically license IP across borders allows companies to expand their market presence, generate revenue streams, and enhance operational efficiency. For companies that often operate at the forefront of international trade and investment, understanding how to effectively structure and manage international property licensing is essential. This article explores the key strategies and considerations for optimizing international property licensing within an international group of companies. It provides practical insights tailored for the international IP merchandising community, focusing on legal, financial, and operational aspects to foster the successful use of IP in a competitive global market.

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Financial Services Regulatory Update 2025/06/27

By JML
  • Hong Kong’s Role in Renminbi’s Internationalization and Digitalization, with Emphasis on Promoting Measures to Protect Investors and Traders
  • Hong Kong Exchanges and Clearing Limited Releases Information Paper on Rule Amendments for Uncertificated Securities Market and Issuer Platform
  • Hong Kong Securities and Futures Commission Adopts Fee Limits for Approved Securities Registrars in Uncertificated Securities Market
  • Proposed AML/CFT Framework for Hong Kong’s Stablecoins Ordinance to commence August 1, 2025
  • Hong Kong Company Re-domiciliation Regime: Overview and Practical Guide
  • Landmark SFC Court Decision Secures $192 Million Compensation to Individual Public Shareholders and Director Disqualifications in Combest’s Case
  • Hong Kong Exchanges and Clearing Limited Introduces CATL Listing to Enhance Market Product Offering
  • The Legislative Council of Hong Kong Passes Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Bill 2024
  • The Stock Exchange of Hong Kong Releases Monthly Report on IPO Applications, Delisting, and Suspensions for May 2025
  • China Securities Regulatory Commission Revises Administrative Measures on Major Asset Restructuring of Listed Companies
  • Hong Kong Securities and Futures Commission and Hong Kong Exchanges and Clearing Limited Publish Joint Announcement on Launch of Technology Enterprises Channel
  • Signing of the International Organization for Mediation Convention in Hong Kong, the Organization’s Headquarters
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Hong Kong Licensed Corporations Alert 2025/06/27

By JML
  • Hong Kong Securities and Futures Commission Issues Circular to Licensed Corporations on Prevention and Handling of Unauthorized Trading Incidents
  • Hong Kong Securities and Futures Commission Provides Updated Guidance to Licensed Corporations Based on Findings from Review of Internal Controls regarding Client Asset Protection
  • Hong Kong Securities and Futures Commission Updates Requirements on Licensed Corporations regarding Phishing Detection and Prevention
  • Hong Kong Securities and Futures Commission Issues to Licensed Corporations its Expected Standards of Conduct for IPO Financing and IPO Subscription Practices
  • Hong Kong Securities and Futures Commission’s Latest Guidelines to Licensed Corporations Following its Cybersecurity Review
  • Hong Kong Securities and Futures Commission Provides Updated Guidance to Intermediaries on Acceptable Account Opening Approaches
  • Hong Kong Securities and Futures Commission Provides Guidance on Expected Standards of Conduct for Virtual Asset Trading Platform Operators Based on Latest Findings from Inspections
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Health Data and Biometrics in AI: Regulatory Risks for Hong Kong Enterprises

By JML

The adoption of artificial intelligence (AI) is transforming the business landscape, enabling enterprises across finance, healthcare, retail, and technology to enhance operational efficiency and deliver tailored services. Processing sensitive personal data, such as health records and biometric identifiers, offers significant opportunities for innovation. Yet, these technological advancements also raise concerns about privacy and data security. These advancements are subject to stringent oversight under Hong Kong’s Personal Data (Privacy) Ordinance (Cap.486) (PDPO). Non-compliance with the PDPO may result in financial penalties, legal liabilities, and reputational damage. The Office of the Privacy Commissioner for Personal Data (PCPD) issued the Artificial Intelligence: Model Personal Data Protection Framework (AI Framework) in 2024 to guide organizations in managing privacy risks associated with AI. Understanding the PDPO, the AI Framework, regulatory risks of processing sensitive data, compliance strategies, and the evolving regulatory landscape is crucial for business operators in Hong Kong.

Health Data and Biometrics in AI Regulatory Risks for Hong Kong Enterprises_en

Copyright Law Compliance Issues Involved in the Use of AI-Generated Content

By JML

The rapid advancement of Artificial Intelligence (AI) has transformed content creation for Hong Kong businesses, enabling the efficient production of marketing materials, design assets, and analytical reports. However, the existing Copyright Ordinance (Cap. 528) does not expressly address AI-generated content, creating uncertainties regarding ownership and potential infringement liabilities. It is important to properly understand the copyright challenges posed by AI-generated content, their implications, and practical strategies to navigate the evolving legal framework while addressing ethical obligations.

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Financial Services Regulatory Update 2025/05/23

By JML
  • Hong Kong Rolls out Further Swap Connect Enhancements
  • Hong Kong Establishes Licensing Regime for Stablecoin Issuers
  • Hong Kong Introduces Company Re-domiciliation Regime and Opens for Applications
  • Hong Kong Passes New Law to Protect Infrastructure Cybersecurity – The Protection of Critical Infrastructure (Computer System) Ordinance
  • Hong Kong Securities and Futures Commission and The Hong Kong Exchanges and Clearing Limited Launch Technology Enterprises Channel with Confidential Filing Option for Specialist Technology and Biotech Companies
  • Hong Kong Securities and Futures Commission Issues Additional Guidance to Licensed Corporations on IPO Subscription and Financing Services
  • Hong Kong Monetary Authority, Hong Kong Police Force, and Hong Kong Association of Banks Announce Enhanced Measures to Combat Financial Crime
  • The Hong Kong Monetary Authority Launched Banking Regulatory Document Repository
  • Hong Kong Gazettes Banking (Amendment) Bill 2025 to Enhance Financial Crime Detection
  • Hong Kong Securities and Futures Commission Prepares Uncertificated Securities Market Regime for Early 2026
  • Hong Kong Securities and Futures Commission’s Takeovers Bulletin Stresses Avoidance of Unequal Dissemination of Information Through Investor Meetings or Other Channels
  • Hong Kong Securities and Futures Commission Promotes Collaboration on Virtual Assets in Abu Dhabi and Dubai
  • Hong Kong Securities and Futures Commission Issues Staking Guidance for Licensed Virtual Asset Trading Platforms and Authorized Virtual Asset Funds
  • Hong Kong Securities and Futures Commission Releases Consultation Paper on Proposed Amendments to Securities and Futures (Stock Market Listing) Rules, Addressing Identified Gaps and Operational Limitations in the Rules and Refining Existing Procedures
  • Hong Kong Securities and Futures Commission Announces Formal Adoption of FASTrack after 6-Month Pilot Period
  • Hong Kong Securities and Futures Commission Issues Guidelines on Market Soundings
  • Hong Kong Competition Commission Reports Key Enforcement and Compliance Developments
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A Review of Ten Years of Competition Law Implementation in Hong Kong

By JML

Hong Kong’s competition law has come of age and enterprises must now take competition law compliance seriously. As Hong Kong commemorates the 10th anniversary of competition law enactment, the Hong Kong Competition Commission (the Commission) shows mastery of competition law enforcement. Strengthening ties with local and Mainland China law enforcement and authorities, including authorities in the Greater Bay Area and the Independent Commission Against Corruption (ICAC), the Commission is poised to target larger syndicates and complex cartels.

Following the implementation of the Competition Ordinance (Cap. 619) (the Ordinance) in 2015 in Hong Kong, two key conduct rules have been established to ensure fair competition in the market. The First Conduct Rule prohibits agreements, decisions, or concerted practices between undertakings that have the object or effect of preventing, restricting, or distorting competition in Hong Kong. This includes practices such as price-fixing, market-sharing, and bid-rigging. The Second Conduct Rule targets undertakings with a substantial degree of market power, prohibiting them from abusing this power through conduct that prevents, restricts, or distorts competition. Such abusive conduct may include predatory pricing, refusal to deal, and exclusivity arrangements. Collaborations with Mainland authorities aim to foster a more unified competition policy, particularly in the Greater Bay Area through the joint initiative with the Guangdong Administration for Market Regulation, targeting enterprises in the region.

In 2025, the Competition Tribunal (Tribunal) is anticipated to continue rendering decisions on more cases, establishing crucial precedents and offering enhanced clarity for Hong Kong’s business community. As exemplified by the Commission’s recent enforcement focus included combating cartel activities affecting citizens in sectors like real estate, funeral services, cleaning services, building maintenance, and logistics technology.

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Hong Kong Recent Enforcement Actions: Cases and Consequences

By JML

Hong Kong Recent Enforcement Actions: Cases and Consequences

This article provides an overview of recent enforcement cases noteworthy to listed companies in Hong Kong, categorized by the nature of misconduct rather than the regulatory authorities responsible. Drawing on actions by the Securities and Futures Commission (SFC), The Stock Exchange of Hong Kong Limited (HKSE), the Independent Commission Against Corruption (ICAC), the Hong Kong Competition Commission, and the Companies Registry, it covers topics like breaches of directors’ duties, internal control failures, market misconduct, fraud, corruption, anti-money laundering violations, competition law breaches, company law compliance, and investor compensation cases. This thematic approach highlights common compliance challenges and the critical need for robust governance to protect market integrity and investor interests.

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Adoption of Generative AI Guideline for Hong Kong’s Financial Market

By JML

The Digital Policy Office (DPO) of the Hong Kong Government has released the Hong Kong Generative Artificial Intelligence Technical and Application Guideline on April 15, 2025. Designed for technology developers, service providers, and users, the Guideline provides practical advice on the use of generative artificial intelligence (AI), addressing its applications, limitations, and potential risks. Key governance principles focus on mitigating issues such as data leakage, model bias, and errors.

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Practical Essentials for Hong Kong IPO Preparation – Key Considerations for Private Equity and Venture Capital Investors

By JML

This article provides an overview of the specific requirements and procedures and positioning considerations in respect of the listing of shares on the Hong Kong Stock Exchange, and compares the different requirements of listing on the Main Board, GEM and specific listing channels (including Chapters 18A, 18B and 18C), to assist institutional investors understand the advantages and special features of the Hong Kong stock market, as well as the essentials for a successful listing.

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Hong Kong’s New Cybersecurity Law to Take Effect on January 1, 2026

By JML

On March 19, 2025, the Legislative Council of Hong Kong enacted the Protection of Critical Infrastructures (Computer Systems) Ordinance (Cap.653), following consultation commenced in 2023. It represents Hong Kong’s first comprehensive cybersecurity legislation aimed at safeguarding critical infrastructure from cyber threats and ensuring the reliability of essential services and critical societal and economic activities.

This is against the backdrop that governmental and statutory bodies like the Fire Services Department, Registration & Electoral Office, Electrical and Mechanical Services Department, the Cyberport, the Consumer Council and the Companies Registry have in recent years suffered data leaks.

Hong Kong’s New Cybersecurity Law to Take Effect on January 1, 2026 01_en

Financial Services Regulatory Update 2025/03/21

By JML
  • Hong Kong Independent Commission Against Corruption’s Promotion and Enforcement for Integrity in the Banking Industry
  • U.S. Law Firm Fined GBP300,000 by Solicitors Disciplinary Tribunal of England and Wales for Anti-money Laundering Breaches
  • Hong Kong Securities and Futures Commission Suspends Finfluencer for Unlicensed Investment Advice
  • Hong Kong Securities and Futures Commission Releases Quarterly Report Showing Strong Momentum in Hong Kong’s Capital Markets Towards End of 2024
  • Hong Kong Insurance Authority Secures First Conviction Against Licensed Insurance Broker for Failure to Submit Audited Financial Statements
  • The China Securities Regulatory Commission Issues “Guideline No. 11 on the Supervision of Listed Companies — Matters Related to the Bankruptcy Reorganization of Listed Companies
  • Hong Kong Accounting and Financial Reporting Council Publishes Report Digest: Reminders for 2024/25 Year-End Audits
  • Hong Kong Exchanges and Clearing Limited Signs MOU with CMU OmniClear to Enhance the Post-Trade Securities Infrastructure of Hong Kong’s Capital Markets
  • OTC Clearing Hong Kong Limited to Accept China Government Bonds, Policy Bank Bonds as Collateral for All Derivatives from 21 March 2025
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Financial Services Regulatory Update 2025/02/28

By JML
  • Hong Kong Securities and Futures Commission Unveils New Roadmap to Develop Hong Kong as a Global Virtual Asset Hub
  • Hong Kong Green and Sustainable Finance Cross-Agency Steering Group Sets 2025 Priorities to Support Growth of Sustainable Finance in Hong Kong
  • The Hong Kong Securities and Futures Commission Flags Cybersecurity Incidents Involving Licensed Firms that Resulted in Business Disruptions in Thematic Review Report
  • The Hong Kong Accounting and Financial Reporting Council Study Advocates for Improved Sustainability Assurance Practices and Urges Auditors to Incorporate Climate Risks in Financial Audits
  • Hong Kong Securities and Futures Commission Concludes Consultation on Proposals to Pave Way for Fully Digitalized Public Offerings
  • Hong Kong Securities and Futures Commission Reprimands and Fines Hang Seng Bank Limited HK$ 66.4 Million for Misconduct in Selling Practices of Investment Products
  • London Metal Exchange Approves Hong Kong as a Delivery Point, Expanding Global Commodity Market Access
  • International Monetary Fund Acknowledges Hong Kong’s Economic Recovery and Resilient Financial System Amid Global Challenges
  • Hong Kong Securities and Futures Commission Supports Listing of Alternative Funds to Broaden Investor Choice and Bolster Market Development
  • Hong Kong Gazettes Subsidiary Legislation to Implement Uncertificated Securities Market Regime for Enhancing Market Efficiency
  • Hong Kong Intellectual Property Department Launches Revised Trade Marks, Patents, and Designs Forms Effective May 2025
  • Hong Kong Companies Registry Implements Key Legislative Reforms Effective April 17, 2025

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