Hong Kong’s securities watchdog and the city’s accounting regulator have signed a new agreement that pulls licensed cryptocurrency businesses into a shared framework for audits and financial reporting, deepening oversight of the territory’s growing digital asset sector.

The Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC) announced the memorandum of understanding on Monday. It extends their cooperation to SFC-licensed virtual asset service providers, licensed corporations, registered open-ended fund companies and authorized funds.

The updated arrangement establishes channels for information sharing, case referrals, mutual assistance and coordinated inspections and investigations. It also…