Hong Kong regulators extend reporting and audit cooperation to licensed crypto firms

Hong Kong's Securities and Futures Commission (SFC) and Accounting and Financial Reporting Council (AFRC) signed a memorandum of understanding extending financial and compliance reporting cooperation to licensed virtual asset service providers. The agreement also covers licensed corporations, registered open-ended fund companies and authorized funds. The agreement covers related audit and assurance work. It establishes a framework for information sharing, case referrals, mutual assistance, and coordinated inspections and investigations. The agreement replaces a 2021 memorandum of understanding signed by the SFC and the Financial Reporting Council. The Financial Reporting Council 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. The SFC has also introduced frameworks for virtual asset margin financing and perpetual contracts.