Hong Kong has implemented two new laws under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance to regulate virtual asset activities. Sections 53ZRF and 53ZRG specifically target fraudulent and deceptive practices by non-licensed service providers. Violators face penalties of up to HK$10 million in fines and prison sentences of up to ten years for severe offenses. This legislative move seeks to mitigate risks such as speculative bubbles and misleading advertising in the virtual asset market.