Hong Kong's Securities and Futures Commission has implemented two new measures to enhance investor protection in its regulatory framework.

The first measure restricts the sale of virtual asset-related products classified as complex to professional investors only. An example of such complexity is seen in overseas virtual asset non-derivative exchange-traded funds.

The second measure requires intermediaries to assess their clients' knowledge of virtual asset investments through a "virtual asset-knowledge test." Clients must pass this test before transactions can proceed, unless the intermediary provides adequate training. Institutional professional investors and qualified corporate professional investors are exempt from this test.

These updates come after a review of existing policies, reflecting ongoing market developments and industry inquiries regarding retail access through intermediaries and direct deposit and withdrawal of virtual assets with appropriate safeguards.