The Regulation of Virtual Assets in Hong Kong – nature, features and risk determine treatment Regulation of virtual assets (including cryptocurrencies) (“VA”) in the Hong Kong Special Administrative Region (“Hong Kong”) has been tightened up in recent years: regulators are moving from regulating VA within the ambit of current legislation to introducing rules that are specific to VA. There is currently no specific or dedicated digital or VA regulator in Hong Kong. The Securities and Futures Commission ("SFC") regulates VA which fall within the definition of "securities" and "futures contracts" under the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong) ("SFO"). The Hong Kong Monetary Authority ("HKMA") adopts a risk-based approach to supervising bank virtual asset activities, in line with applicable international standards.