Hong Kong’s financial watchdogs, the Securities and Futures Commission (SFC) and the Accounting and Financial Reporting Council (AFRC), have signed a new Memorandum of Understanding (MoU) to strengthen financial reporting and audit checks for licensed crypto firms.

The move will help regulators review financial records, share information, and spot risks early before they become bigger problems.

New Agreement Brings Crypto Firms Under Closer Checks

The newly active MoU directly replaces the 2021 agreement and brings licensed crypto firms under Hong Kong’s regular financial checks.

The rules mandate that crypto firms holding an SFC license must subject their corporate balance sheets, proof-of-reserves, and client-asset custody logs to…