Hong Kong expands financial reporting oversight to licensed crypto firms

Hong Kong regulators have widened their financial reporting and audit oversight to include licensed crypto firms under a new memorandum of understanding. On Monday, the Securities and Futures Commission and the Accounting and Financial Reporting Council said the agreement extends cooperation to SFClicensed virtual asset service providers, along with licensed corporations, registered openended fund companies and authorized funds. The arrangement also covers audit and assurance work, as well as information sharing, case referrals, mutual assistance and joint inspections or investigations. It replaces a 2021 deal between the SFC and the former Financial Reporting Council, which became the AFRC in 2022. SFC chair Kelvin Wong said the broader framework is intended to support more comprehensive oversight across Hong Kong’s financial sector. The move comes as the city continues to build out rules for digital assets, including recent plans for crypto advisory services and frameworks for virtual asset margin financing and perpetual contracts.