Hong Kong has widened regulatory coordination over financial reporting, audits and compliance to include licensed crypto firms. The Securities and Futures Commission and the Accounting and Financial Reporting Council said Monday they had signed a new memorandum of understanding covering SFC-licensed virtual asset service providers, licensed corporations, registered open-ended fund companies and authorized funds. The arrangement also covers related audit and assurance work and sets out a framework for information sharing, case referrals, mutual assistance, and coordinated inspections and investigations. It replaces an earlier 2021 agreement signed between the SFC and the former Financial Reporting Council, which became the AFRC in 2022. SFC Chair Kelvin Wong said the broader arrangement would give Hong Kong’s financial sector "more comprehensive oversight" across a wider range of entities and activities. The move comes as Hong Kong keeps building out its digital asset rulebook. In January, regulators laid out plans for new rules on crypto advisory services, and the SFC has also introduced frameworks covering virtual asset margin financing and perpetual contracts.
Hong Kong regulators have widened cooperation on financial reporting and audits to include licensed crypto firms under a new memorandum of understanding.
On Monday, the Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) said the agreement extends their regulatory cooperation to financial and compliance reporting by SFC-licensed virtual asset service providers, licensed corporations, registered open-ended fund companies and authorized funds.
According to the SFC, the MoU also covers related audit and assurance work. It sets a framework for information sharing, case referrals, mutual assistance, and coordinated inspections and investigations. The agreement replaces a 2021 MoU signed by the SFC and the Financial Reporting Council, which was renamed the AFRC in 2022.
Broader oversight framework
SFC Chair Kelvin Wong said the expanded cooperation would provide "more comprehensive oversight" across a broader range of entities and activities in Hong Kong’s financial sector.
The agreement arrives as Hong Kong continues to build out its digital asset regulatory framework. In January, regulators outlined plans for new rules covering crypto advisory services. The SFC has also introduced frameworks for virtual asset margin financing and perpetual contracts.
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