Hong Kong-licensed crypto firms will face stricter reporting rules, a move regulators believe will improve “market integrity” and confidence. 

In a joint statement on the 28th of September, Hong Kong’s Securities and Futures Commission (SFC) and Accounting and Financial Reporting Council (AFRC) signed an agreement to officially bring crypto firms under the traditional reporting framework. 

According to the arrangement, SFC-licensed virtual asset service providers (VASPs) will be strictly audited, covering corporate balance sheets, proof-of-reserves, and internal compliance reporting.  

Additionally, the framework provides an avenue for regulatory inspections and investigations for compliance. 

It (MoU) establishes a…