Hong Kong Considers Expanding SFC Crypto Regulatory Team
Hong Kong's Securities and Futures Commission (SFC) has proposed expanding its cryptocurrency-specific staff as part of its ongoing efforts to establish the region as a global crypto hub.
In its budget plan for the financial year 2025-2026, the SFC said it needed 15 additional personnel. Eight would be dedicated to virtual asset regulatory frameworks, market surveillance, and enforcement investigations. The SFC had frozen its headcount in three of the last five financial years.
Presenting its budget proposal at a Legislative Council meeting, the SFC said its recurrent expenditure for the upcoming fiscal year is HK$2.59 billion ($332.4 million), marking a 7.2% increase from the previous year’s forecast. Staffing costs are expected to increase by HK$130.5 million ($16.7 million), including an average salary increment of 2.1%.
In a separate document, the SFC revealed that it had redeployed personnel experienced in licensing and supervision to manage crypto-related regulatory duties but added that it fell short of its inspection targets in 2023.
Only 200 on-site inspections of licensed corporations instead of the intended 300 were achieved, signaling the need for increased staffing.
Hong Kong's Legislative Council recently discussed the government's proposed "Stablecoins Bill." The Legislative Council committee reviewed details of the bill's regulation with key government officials in attendance.
At the meeting, Francis Ho, deputy secretary for Financial Services and the Treasury Bureau (FSTB), highlighted the government’s intention to require stablecoin issuers to secure a license from the Hong Kong Monetary Authority (HKMA).
Hong Kong also approved four new cryptocurrency exchanges as part of the city's ongoing efforts to establish itself as a global hub for digital asset trading in December.
The newly licensed platforms include Accumulus GBA Technology Co., DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI).
In total, there are now seven licensed virtual asset trading platforms in Hong Kong, with the new exchanges joining previously approved HashKey, OSL, and HKVAX.