Hong Kong regulators expand crypto firm financial reporting oversight
Image: CointelegraphOn September 28, Hong Kong's Securities and Futures Commission (SFC) and Accounting and Financial Reporting Council (AFRC) signed a new memorandum of understanding (MoU). The agreement extends financial reporting, audit and compliance oversight to licensed virtual asset service providers (VASPs). It replaces a 2021 MoU that only covered traditional financial entities. The updated framework establishes information sharing, case referral and coordinated enforcement mechanisms between the two regulators. Licensed VASPs must now meet the same audit and reporting standards as traditional financial firms.
Key points
- The agreement replaces a 2021 MoU that only applied to traditional financial entities
- Licensed VASPs must now meet the same audit and financial reporting standards as traditional financial firms
- The MoU establishes frameworks for information sharing, case referrals and coordinated enforcement between regulators
Why it matters
The expanded oversight addresses institutional investors' longstanding concerns about unreliable audited financial data from crypto platforms. It also aligns crypto firm regulatory obligations with those of traditional financial institutions operating in Hong Kong.
Sources · 2 publishers
Crypto Briefing
Tier 2
Hong Kong regulators expand financial reporting oversight to crypto firms
Coverage timeline
- First reported by Cointelegraph
- Confirmed by Crypto Briefing
- CryptoVideos brief published
How this brief was made. Our system found this event in 2 independent publications, summarised two complete reports with AI and checked every number above against the source text. Sources are linked in full. Not financial advice. Report an error
