Hong Kong expands oversight for crypto firms with new SFC-AFRC pact

56 minutes ago

Newsroom

Why did Hong Kong decide to apply traditional financial regulations to virtual asset service providers?

What new obligations will virtual asset businesses in Hong Kong face due to this regulatory change?

Specifically, how has the cooperation between the two regulatory bodies changed?

Hong Kong expands oversight for crypto firms with new SFC-AFRC pact — Image source: Unblock Media

SFC and AFRC launch strengthened compliance standards for licensed crypto firms in Hong Kong
New agreement boosts regulatory collaboration and investor protection for the digital asset sector

On September 28, 2026, Crypto Briefing reported that Hong Kong’s Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) signed a new Memorandum of Understanding to extend financial reporting, audit, and compliance oversight to licensed crypto companies.

The MoU replaces the 2021 agreement, establishing a stronger framework for regulatory coordination. It includes information sharing, case referrals, and joint enforcement to ensure consistent supervision.

Licensed virtual asset service providers in Hong Kong must now follow the same financial reporting and audit standards as traditional securities firms. This move signals heightened regulatory scrutiny for the region’s digital asset industry.

With unified oversight standards, the SFC and AFRC aim to bolster investor protection and market integrity in Hong Kong’s digital asset sector. The agreement reinforces ongoing regulatory commitment to address risks linked to virtual asset activities.

The new policy marks a significant step in tightening local regulation and ensures that licensed crypto firms in Hong Kong remain subject to rigorous compliance requirements.