How should Hong Kong UPDATE itself for innovation and technology?

DragonCon 2017.11.9

“

In the face of rapid innovation, many new technologies and

business models are at odds with Hong Kong's legislation.

Moving a Member's motion on "Reforming outdated legislation and promoting the development of innovation and technology“:

Passed in Legislative Council (5 July 2017)

Where are we?

Sharing Economy?

Road Traffic Ordinance Section 52(3) of the Road Traffic Ordinance (Cap. 374) states that drivers are required to have a hire car permit for the use of private car to carry passengers for rewards (not limited to cash) Private service (limousine) hire car - for the carriage of clients of a contracted company, or individuals requiring personalized high-end transportation

Car-hailing / Ride-sharing

Requires contract and proof of service need

Short term rental Hotel and Guesthouse Accommodation Ordinance

(Cap. 349) Premises that offer sleeping accommodation for a fee for any period less than 28 days must be licensed, the maximum penalty for operating an unlicensed guest house is a HK$200,000 fine and two year’s imprisonment. fine of HK$20,000 for each day the offence continues.

New business models enabled by the Internet

Online matching of P2P local guides

Travel Agents Ordinance (Cap. 218)

section 9(a): no person shall carry on business as a travel agent without a licence A person is an inbound travel agent if he carries on the business in Hong Kong of obtaining for a visitor – • sightseeing or visits to local places of

interest; • restaurant meals or other catered meals; • shopping trips; • local transport in connection with above

Matching local tour guides providing sightseeing visits to incoming tourists for financial reward = require travel agent license?

Buying /selling home-cooked food from home

chef Food Business

Regulation (Cap 132X) Food business that involves sale of any food, such as food factory, restaurant, must obtain a licence

P2P pet-sitter matching Public Health (Animals) (Boarding Establishment) Regulations (Cap. 139I)

Reg 2: all boarding establishments (including pet hotels) are required to have a licence from the AFCD. Reg 4: Operating such a business without a licence is an offence punishable by a fine of $2,000

Use of latest technology

Personal Mobility Devices

E-scooters, E-bikes, Hoverboard etc…

Road Traffic Ordinance (Cap. 374)

motor vehicle means any mechanically propelled vehicle s.22 Registration and licensing …every vehicle of a class specified in Schedule 1 which is used on any road shall be licensed. s.42 Driving without a licence no person shall drive a motor vehicle on a road unless he is the holder of a driving licence…

In-vehicle display/ Telematics

Road Traffic (Construction and Maintenance of Vehicles) Regulations (Cap. 374A)

FinTech

Equity crowdfunding Securities and Futures

Ordinance (Cap.571) SFO and the Companies (Winding Up and Miscellaneous Provisions) Ordinance includes regulations on offer to the public to purchase securities (e.g. shares, debt instruments or interests in collective investment schemes) Licenses might apply: Type 1 (dealing in securities) | Type 4

(advising on securities) | Type 6

(advising on corporate finance) | Type

7 (providing automated trading

services) | Type 9 (asset management)

Blockchain / Distributed Ledger Technologies

Online P2P Lending

Biometrics vs Electronic Transactions

Ordinance

What other laws need an update?

• Definition of

‘personal data’

• AI

• Big data analysis

• Machine learning

• Health data

• Biometric data

• Browser data

• Location data

• Cross border

transfer

• Profiling,

identifiability

• Enforcement power

• Breach notices

• Heavier penalties?

[Consultation soon]

Policy Address 2017 “Fifth, review existing legislation and regulations, so as to

remove outdated provisions that impede the development of innovation and technology. With the

rapid advancement in technology, new economic models such as the sharing economy are becoming increasingly

popular in the Mainland and overseas cities in recent years, leading to the emergence of many new economic

activities. I will ask the Policy Innovation and Co-ordination Unit to

be established to work with all bureaux to proactively review the policies and legislation within their policy

purview to bring them up to date and remove red tape in order to foster the development of a new economy.”

#UPDATEHK: Challenges ahead?

Bureaucracy Lack of policy vision

Resistance of interest Groups

Speed Public awareness

Innovation

Questions ? ◉ www.charlesmok.hk ◉ FB: Charles Mok 莫乃光 ◉ Twitter/LinkedIn: @charlesmok ◉ charles@charlesmok.hk

Thanks