Hong Kong's Securities and Futures Commission (SFC) and Accounting and Financial Reporting Council (AFRC) signed a memorandum of understanding on September 28 that formally includes licensed virtual asset service providers (VASPs) in their cooperation on financial reporting, audits and regulatory compliance. Replacing a 2021 agreement, the non-binding framework covers SFC-licensed corporations, licensed VASPs, SFC-authorized funds and registered open-ended fund companies, along with related audit and assurance work. It enables information sharing, referrals, regulatory assistance, and coordinated inspections and investigations without creating new obligations or changing either agency's legal powers. The arrangement gives the SFC notification and consultation rights in specified AFRC investigations involving licensed VASPs, their responsible persons, auditors and financial-reporting compliance. The expansion coincides with Hong Kong's broader digital-finance agenda, including a proposed multi-currency digital green bond and strengthened authentication requirements for licensed crypto platforms.