Hong Kong regulators expand financial reporting oversight to licensed crypto firms
Written by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff editorThe 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).
On Monday, the Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) said that 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 and establishes 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.
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 comes as Hong Kong continues to expand its digital asset regulatory framework. 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.
Related: Hong Kong jails ex-banker over $1.6B false credit, cryptocurrency bribes: Report
Subscribe to daily byte-sized crypto news from Cointelegraph
More on the subject
