On September 28, the Hong Kong Securities and Futures Commission (SFC), in collaboration with the Accounting and Financial Reporting Council (AFRC), announced the introduction of stricter reporting rules for cryptocurrency companies licensed in Hong Kong. This move aims to enhance “market integrity” and trust in the city's financial system. Under the new rules, crypto firms licensed by the SFC will be required to undergo rigorous audits covering corporate balance sheets, proof of reserves, and internal compliance reporting. The agreement signed by both organizations establishes a comprehensive framework for information sharing, case referrals, mutual assistance, as well as coordination of inspections and investigations on matters of mutual regulatory interest.
SFC Chief Executive Officer Ms. Julia Leung emphasized the importance of adapting regulation to the “evolution of market dynamics.” According to her, this is necessary to maintain the quality of financial reporting and enhance global investors' trust in Hong Kong's regulatory system. Crypto assets are increasingly penetrating the city's financial system: a licensing scheme for stablecoins was launched in early 2026, and since 2023, Hong Kong has placed nearly $4 billion in tokenized digital bonds of the government and public sector. This experience, according to the source, prompted Pakistan to seek technical and regulatory expertise from Hong Kong.
The strict reporting rules for cryptocurrency firms are also aimed at combating money laundering and tax evasion, which should assist law enforcement agencies in investigating crimes in this area. In March, Hong Kong expanded police powers, allowing access to encrypted devices, raising concerns about the privacy of cryptocurrency users. Regulators estimate that this will enhance “market integrity” and global investors' trust.
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