Hong Kong Cracks Down on Crypto Firms with Stricter Reporting Rules
Hong Kong's regulators have tightened their grip on cryptocurrency firms by bringing them under a stricter reporting framework. This move aims to boost 'market integrity' and confidence among global investors.
On September 28th, Hong Kong's Securities and Futures Commission (SFC) and Accounting and Financial Reporting Council (AFRC) signed an agreement to regulate crypto firms more closely. The new rules require SFC-licensed virtual asset service providers to undergo strict audits, covering corporate balance sheets, proof-of-reserves, and internal compliance reporting.
The framework also provides for regulatory inspections and investigations into compliance matters. This move is seen as a step towards optimizing market oversight in the region.