Hong Kong regulators expand financial reporting oversight to licensed crypto firms

What happened

The SFC and AFRC signed a new MoU extending financial reporting, audit and compliance cooperation to licensed virtual asset service providers. Hong Kong regulators have expanded their cooperation on financial reporting and audits to cover licensed crypto firms under a new memorandum of understanding (MoU).

The agreement replaces a 2021 MoU signed by the SFC and the Financial Reporting Council, which was renamed the AFRC in 2022. 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.

In January, regulators outlined plans for new rules covering crypto advisory services, while the SFC has also introduced frameworks for virtual asset margin financing and perpetual contracts. The agreement comes as Hong Kong continues to expand its digital asset regulatory framework.

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