Hong Kong has introduced stringent regulations for virtual asset traders and custodians, as finalized by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC). The new rules emphasize Countering the Financing of Terrorism and are modeled on existing securities laws. This framework mandates that custodians must effectively safeguard private keys, while traders are required to adhere to high operational standards. The regulatory update aims to bolster liquidity and the overall crypto market by enhancing oversight. It completes the SFC’s ASPIRe roadmap, which is designed to improve transparency and provide a more secure environment for institutional investors engaging in the crypto space.