HONG KONG SAR, CHINA Law and Practice Contributed by: Angus Forsyth, Angus Forsyth & Co
9.2 Metaverse There are no special laws or regulations in the Hong Kong SAR applicable to advertising within the metaverse. Further, given that Hong Kong does not have any Advertising Standards Authority and given that the Broadcast Codes expressly exclude the inter - net from definition as broadcast service, the Televi - sion and Radio Codes have no specific application to internet communication.
ing in securities) and Type 7 (providing automated trading services), both as regulated activities. With effect from 1 March 2023, the Securities and Futures Commission has administered a new licens - ing regime for Virtual Asset Service Providers (VASP). If a VASP operates in Hong Kong in active market - ing to the public of the services of a VASP that is not licensed in Hong Kong, this is an offence punish - able on conviction on indictment to a fine of HKD5 million and to imprisonment for seven years and, in the case of a continuing offence, to a further fine of HKD100,000 for every day during which the offence continues. The new regulation empowers the Secretary for Finan - cial Services and the Treasury to prescribe by notice published in the Hong Kong Government Gazette whether a particular asset is to be considered as a virtual asset under the Anti-Money Laundering Ordi - nance (AMLO). Non-Fungible Tokens (NFT) The NFT is a representation of a different form of digi - tal files ranging from photos, videos (and films) and digital art. The blockchain is used to store the NFT in a digital ledger as an encrypted and duplicated asset system on a chain of consecutively linked blocks. The NFT is a unique and secured certificate which is evidence that the holder is entitled to a certified ownership of the NFT as a digital asset, although the underlying copyright and any registered entitlement underlying the NFT is not part of and is not traded with the NFT unless there is an express contractual provi - sion entitling and evidencing the passing of and cor - responding entitlement of the holder to such assets. When and if created pursuant to a smart contract, it is possible for that contract to provide for generation of a limited number of NFTs for the same artistic work. NFT is “minted” (ie, created) by a process of constituting the NFT as a virtual asset on the blockchain, and the creator of the NFT may be either an artist or a party with appropriate rights to entitle the minting by that person of an NFT into a digital asset.
10. Product Compliance 10.1 Regulated Products
The Public Health and Municipal Services Ordinance provides that no person shall advertise for sale any drug with any added substance to or abstracted from it injuriously affecting its quality, constitution or poten - cy by means of adding a substance to or abstracting any constituent from the drug so as to affect injuri - ously its quality, constitution or potency nor to adver - tise under the designation of milk any liquid in the making of which any separated milk, or any dried or condensed milk has been used. Under the Food and Drugs (Composition and Label - ling) Regulations, advertisement means any form of advertising intended for the general public which is published by any means, including: • newspaper or other publication; • television or radio broadcast; • electronic messages; • display of notices, signs, labels, showcards or goods; • distribution of samples, circulars, catalogues, pricelists or other materials; or • exhibition of pictures, models or films, and “advertise” shall be construed accordingly. It is further provided that any person who advertises for sale any pre-packaged food which is not marked or labelled in compliance with the applicable regula - tion shall commit an offence and be liable to a fine and to imprisonment. It is further provided that if any per - son advertises for sale any pre-packaged food where the advertisement contains any nutrition claim that
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