The Hong Kong SFC plans to hire more staff to enhance crypto regulation and build the region into a global digital asset hub.
The Hong Kong securities regulator, the Securities and Futures Commission (SFC), has proposed increasing its staff to handle the growing demands of the cryptocurrency industry. Meanwhile, Hong Kong initiates a global digital asset hub development by implementing this measure.
The SFC outlined in its budget plan for the financial year 2025-2026 that it would add 15 new personnel to its workforce. Eight positions will form part of the newly established group to monitor cryptocurrency operations. The newly hired staff personnel will strengthen market oversight activities. In addition, they will implement regulations to build Hong Kong as a virtual asset regulatory center.
The SFC presented its budget to Legislative Council representatives on Monday. The SFC plans to allocate HK$2.59 billion ($332.4 million) in its next fiscal year funding. This represents a 7.2% increase over the 2023-2024 budget. A big part of this budget growth will fund employee costs by providing existing staff members with salary boosts amounting to 2.1% per year.
Hong Kong Strengthens Crypto Oversight with New Licensing System and Staff Expansion
The Hong Kong SFC maintained a position of staff number freezes in three out of five financial years starting in 2020. The increasing demand for cryptocurrency regulations has convinced authorities to increase employee numbers. The 2023 annual inspections performed by the regulator reached only 200 licensed entities. On the other hand, the authority set a 300-company target for assessments.
The crypto industry regulatory oversight receives improved attention through the hiring of new staff members. Additional staff members at the SFC aim to boost the organization’s capabilities regarding virtual asset management and marketplace observation as well as law enforcement standards.
The Hong Kong government expects this year will bring a budget deficit of HK$100 million ($13 million). However, the SFC gained extra resources to reflect the rising significance of cryptocurrency operations. The authorities recognize the importance of developing Hong Kong into an important hub for innovative crypto initiatives.
The June 2023 announcement brought forward a new licensing system for operators in the cryptocurrency market. The authorities plan to control stablecoin providers, yet stablecoin legislation remains under examination.
As Hong Kong implements these steps, it establishes itself as a global front-runner for cryptocurrency regulation to stay competitive in the fast-growing digital asset sector.
