Hong Kong's financial regulators are stepping up their oversight of the crypto sector by expanding financial reporting requirements for licensed virtual asset service providers. A new memorandum of understanding (MoU) was signed between the Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC).
This agreement aims to enhance regulatory cooperation concerning financial and compliance reporting for various entities, including licensed corporations and authorized funds. The MoU also encompasses audit and assurance work, establishing a framework for information sharing and coordinated inspections.
SFC Chair Kelvin Wong emphasized that this expanded cooperation will lead to more comprehensive oversight across a wider range of activities within Hong Kong's financial landscape. This move aligns with the region's ongoing efforts to strengthen its digital asset regulatory framework.
In recent months, Hong Kong has introduced new rules for crypto advisory services and frameworks for virtual asset margin financing, reflecting its commitment to fostering a secure environment for digital assets.