PANews reported on February 20 that the Hong Kong Monetary Authority (HKMA) today issued a circular on the sale and distribution of Token Products, setting out the expected regulatory standards for authorized institutions to comply with when selling and distributing Token products to customers. As a general principle, the existing regulatory requirements and consumer/investor protections for the sale and distribution of a product also apply to the product sold and distributed in the form of Token generation, as its terms, features and risks (other than those arising from Token itself) are similar to those of the relevant product. Although some Token Products are basically traditional products wrapped in Token, there may still be some situations where the nature, characteristics and risks of a Token Product may change due to the structure and arrangement of the product during the Token process. For example, an arrangement to Token a segmented equity in an asset may constitute a collective investment scheme. AIs should therefore ensure that they assess and understand the terms, features and risks of each Token Product and should exercise professional judgment to determine the applicable legal and regulatory requirements. In addition to the expected standards set out in this Circular, AIs should comply with all applicable laws and regulatory requirements when selling and distributing Token Products. AIs should have adequate systems and controls in place to ensure compliance with all applicable requirements when selling and distributing Token Products to their customers, and separately implement appropriate internal controls to address the relevant Token. In addition to the general principles, AIs should implement consumer/investor protections on due diligence, disclosure and risk management in relation to Token Products. AIs should implement adequate policies, procedures, systems and controls to ensure compliance with the requirements set out in this Circular and other applicable requirements before engaging in activities related to Token Products, and discuss with the HKMA in advance. The HKMA will continue to monitor the regulatory environment and global developments in the Token Market and provide further guidance to AIs as necessary.

The Hong Kong Monetary Authority (HKMA) has published a public consultation paper to solicit opinions on the proposal to allow authorized institutions to exchange customer account information for the prevention or detection of financial crime, and the consultation period will end on March 29. Eddie Yue, Chief Executive of the HKMA, said that through effective exchange of information, the banking industry, regulators and law enforcement agencies can play a key role in tackling fraud and financial crime and protecting Financial Service consumers through the increasing risk of fraud and financial crime around the world, as criminals see the Interest Spread of discrepancies between banks, and the use of the financial system to transfer and conceal illicit funds. The HKMA believes that large-scale digital fraud may undermine public confidence in the use of new digital financial services, and the exchange of information is internationally recognised as an effective tool against financial crime. According to the authorities, the threat of criminals using the financial system to transfer illicit funds still exists, and there is a need to further support the advanced application of technology and analytics to more effectively detect and stop fraudulent and sockpuppet account networks and intercept illicit funds. The paper invites the industry and the public to give their views on a number of issues, including the amendments to the relevant legislation to provide legal protection for AIs, and the mechanism for protecting data privacy and confidential customer information.

According to Businessinsider, quoted by IT House, large AI models are now powerful enough to create new small AI tools completely automatically, without any human intervention. A team of scientists from MIT, multiple UC campuses, and AI tech company Aizip say they've been able to make large AI models, like those run by ChatGPT, essentially self-replicating. Yan Sun, CEO of Aizip, said, "Right now, we're using large models to build small models, just like older brothers help younger brothers improve. This is the first step towards the autonomous evolution of AI. It is also the first time that an AI model has been shown to be able to create other AI models on its own. "Our technology is a breakthrough because for the first time, we have designed a fully automated process that can design an AI model without human intervention," said Yubei Chen, one of the researchers. The team is currently focused on creating these micro-AIs and says the design process can now be automated by smarter AI.

PANews news on July 28, according to Cryptonews reports, the Brazilian police raided addresses related to the suspected encryption operator Braiscompany, the owner of which fled the country with about $160 million worth of customer funds. Earlier this year, police launched an investigation into the company code-named Operation Halving. The operation involved raids on addresses linked to the company in São Paulo and Aracaju, and assets worth about $28.7 million were seized, police said in an official news release. It is understood Braiscompany recruited "members" and then asked those "members" to recruit others into the scheme. They are promised higher levels of rewards by recruiting acquaintances, friends and family. The problems started last December when some investors complained that they could no longer withdraw funds from the platform. In early 2023, the company's owners and executives are on the run. Shortly after, police issued arrest warrants for several Braiscompany employees. Last month, police announced the arrest of three people linked to Braiscompany in Foz do Iguazu, on the Brazil-Argentina border. The company was founded by couple Antônio Neto Ais and Fabrícia Campos, who are still at large and have been placed on the Interpol red list.