Hong Kong’s SFC Expands Workforce to Regulate Crypto
The Securities and Futures Commission (SFC) of Hong Kong is set to expand its workforce significantly, with a focus on enhancing oversight of the burgeoning cryptocurrency sector. According to a recently presented two-year budget plan to the Legislative Council (Legco), over 50% of the new roles will be concentrated on crypto regulation.
Despite maintaining a freeze on its workforce in three of the last five financial years since 2020, the SFC is looking to recruit an additional 15 personnel, with eight of those positions specifically allocated to bolster efforts in the cryptocurrency domain. This move underscores the regulator’s commitment to effectively oversee the digital asset landscape.
As outlined in the budget proposal presented on Monday, “Eight of the proposed new headcount is for enhancing the staffing support for virtual asset regulatory regimes, market surveillance and enforcement investigations.” This initiative comes at a time when Hong Kong’s government is grappling with a projected budget deficit of approximately $HK100 million (around $13 million) for the current year, prompting expectations of budget cuts to be announced later this month, as reported by the South China Morning Post.
In June 2023, Hong Kong established a new licensing framework for cryptocurrency firms, aiming to create a more structured environment for digital assets. Furthermore, the government announced plans to license stablecoin providers, with discussions regarding the stablecoin bill still underway. This progressive regulatory approach reflects Hong Kong’s ambition to position itself as a leading hub for cryptocurrency and digital finance.
