Hong Kong regulators expand oversight to include crypto firms

Hong Kong regulators have expanded their supervisory cooperation through a new memorandum of understanding (MoU) between the Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC).

The agreement extends oversight beyond listed companies to include licensed virtual asset service providers (VASPs), licensed corporations, authorized funds, and registered open-ended fund companies. It specifically covers financial and compliance reporting, as well as the audit and assurance work performed by their respective auditors.

Under the new framework, the two bodies will engage in information sharing, case referrals, mutual assistance, and coordinated inspections and investigations. This move aims to provide more comprehensive oversight and allow regulators to identify emerging risks earlier in the financial ecosystem.