SFC and AFRC expand crypto oversight with new MoU
In brief
- SFC and AFRC signed new MoU replacing 2021 agreement on crypto oversight
- Framework covers audit, assurance, information sharing, and coordinated inspections
- SFC Chair Kelvin Wong cited expanded cooperation for comprehensive financial sector oversight
Expanded Framework for Crypto Oversight
The new MoU covers audit and assurance work, establishing a framework for information sharing, case referrals, mutual assistance, and coordinated inspections and investigations. The agreement replaces a prior 2021 memorandum signed by the SFC and the Financial Reporting Council, which was renamed the AFRC in 2022.
SFC Chair Kelvin Wong emphasized the significance of the partnership. "The expanded cooperation would provide more comprehensive oversight across a broader range of entities and activities in Hong Kong's financial sector," he said in a statement.
Building on Recent Regulatory Moves
Hong Kong has been tightening its grip on crypto compliance. In January, regulators outlined plans for new rules covering crypto advisory services. The SFC has also introduced frameworks for virtual asset margin financing and perpetual contracts, signaling a broader push to establish guardrails around digital asset trading.
The new MoU reflects Hong Kong's strategy of deepening coordination between financial regulators and accounting bodies. By extending the framework to licensed virtual asset service providers, the city's authorities are closing gaps in oversight that existed under the prior agreement.
