You can see the rules and regulations in other jurisdictions.
No legislation controls self-executing contracts, so long as the implementation complies with the relevant regulations. For example, if the contract was duly signed and sealed, any type of automatic transfer of funds or digital assets would be accepted. Nonetheless, certain goods subject to registration with local authorities (such as transferring a property or shares in a Hong Kong business) are only deemed valid once all mandatory steps are taken and necessary submissions are sent to the appropriate government bodies.1
As alternative dispute resolution methods, mediation and arbitration are widely accepted. As long as the parties to a private transaction clearly record this arrangement in the agreement they enter into, they may require any disputes to be resolved through mediation or arbitration or both, instead of court proceedings.1
At present, it is not certain whether automated investment processes (transacting in securities without any human involvement) are accepted. According to the SFC Online Guidelines, robo-advice is the provision of financial advice through an online platform via algorithms and other technological tools.The SFC has indicated that this may include totally automated investment advice with no human input. Nevertheless, it appears to be unclear if this extends to automated investment processes.1
Interest in blockchain technology in Hong Kong has driven the formation of various business models and the emergence of an entire new industry. Notable among them is the production and issuance of non-fungible tokens (NFTs) and their creative uses, like NFT domain names and cloud services. Currently, Hong Kong has yet to introduce laws which regulate NFT-related activities. Furthermore, as NFTs are not interchangeable, they are considered unlikely to be deemed as shares or any other form of security pursuant to the Securities and Futures Ordinance (SFO), provided they do not belong to one asset. Despite this, regulators in Hong Kong continue to construct a comprehensive regulatory framework for virtual assets and will probably issue clearer guidelines regarding NFTs in due course.1
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