The Securities and Futures Commission (SFC) of Hong Kong has issued a circular requiring licensed institutions to strengthen their cybersecurity defenses in response to emerging threats posed by cutting-edge artificial intelligence models. In the circular, the SFC specifically urges licensed institutions, such as online brokerages and virtual asset trading platforms, to adopt and promptly update robust measures to safeguard system security, prevent unauthorized access to or leakage of confidential client information, and ensure client assets are not misappropriated. Furthermore, the SFC points out that licensed institutions need to review and enhance several key areas within their cybersecurity frameworks, including patch and vulnerability management, detection and monitoring measures, as well as incident response and recovery capabilities, to ensure these measures are updated in a timely manner and operate effectively.