Hong Kong Regulators Expand Oversight to Licensed Crypto Service Providers

Hong Kong's financial regulators have expanded their oversight to licensed virtual asset service providers. The Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) signed a cooperation framework on September 28, which will see them coordinate oversight of financial and compliance reporting by SFC-licensed virtual asset service providers.

The framework also covers other entities such as licensed corporations, SFC-authorized funds, and registered open-ended fund companies. Auditors serving these entities will fall within the scope of related audit and assurance oversight.

The memorandum establishes arrangements for information sharing, case referrals, and mutual assistance between the two regulators. The SFC and AFRC will also coordinate inspections and investigations involving matters of shared regulatory interest.