Over the last decade, virtual assets (VAs) have gained significant attention in financial markets worldwide, but their reputation has been marred by their connection with illicit activities. While cognizant of the corruption risks associated with the VA industry, the Hong Kong government has also recognized that technological innovation will help to propel economic and industry development. Thus, Hong Kong has sought to amend and introduce laws to reign in the risks of VAs while allowing for the economic benefits. In a guest article, Hogan Lovells Hong‑Kong-based partner Byron Phillips, along with senior associate Stephanie Tsui, senior knowledge lawyer Nigel Sharman and trainee solicitor Bethan Savage, looks at the risks posed by VAs and how the new legal regime is designed to promote confidence in the VA industry in Hong Kong. See “The Evolving Crypto Regulatory Climate” (May 11, 2022).