Hong Kong regulators expand crypto financial reporting rules
Hong Kong regulators expand financial reporting oversight to licensed crypto firms after the Securities and Futures Commission and the Accounting and Financial Reporting Council signed a new memorandum of understanding. The deal extends audit, compliance and information-sharing cooperation to SFC-licensed virtual asset service providers and related funds.
Key Takeaways
- The SFC and AFRC signed a new MoU covering financial and compliance reporting by licensed virtual asset service providers.
- The pact also includes audit and assurance work, information sharing, case referrals and coordinated inspections.
- It replaces a 2021 MoU with the Financial Reporting Council, which was renamed the AFRC in 2022.
- SFC Chair Kelvin Wong said the expanded cooperation offers more comprehensive oversight across Hong Kong’s financial sector.
What did Hong Kong regulators expand under the new MoU?
On Monday, the Securities and Futures Commission and the Accounting and Financial Reporting Council said their updated agreement extends 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. It sets a framework for information sharing, case referrals, mutual assistance and coordinated inspections and investigations.
The move puts licensed crypto platforms under the same reporting-cooperation umbrella that already applies to a wider set of SFC-regulated entities. For readers tracking Asia market rules, our Fintech & Crypto Alerts hub covers similar regulatory shifts.
Why does the MoU matter for licensed crypto firms?
The agreement replaces a 2021 MoU signed by the SFC and the Financial Reporting Council, which was renamed the AFRC in 2022. Updating that framework signals that virtual asset service providers are now firmly inside Hong Kong’s financial reporting and audit cooperation system.
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 practical terms, licensed crypto firms should expect closer coordination between market and accounting regulators on filings, audits and compliance issues.
That matters because licensing alone is no longer the end of the compliance story. Reporting quality, auditor scrutiny and cross-agency referrals are now part of the same supervisory picture.
How does this fit Hong Kong’s wider crypto rulebook?
The MoU arrives as Hong Kong continues to broaden its digital asset regulatory framework. 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.
Taken together, the reporting MoU and those product-level frameworks point to a market where licensed VASPs face deeper, ongoing supervision—not just entry requirements. Firms operating under an SFC licence will need to align financial reporting and assurance practices with expectations shared across the SFC and AFRC.
For investors and operators, the headline is clear: Hong Kong is tightening the link between crypto licensing and traditional financial reporting oversight, using a formal MoU rather than ad hoc coordination.