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.

The Securities and Futures Commission (SFC) of Hong Kong has proposed increasing its staff to meet the growing demands of the cryptocurrency industry and help build Hong Kong into a global digital asset hub.

The SFC outlined in its budget plan for the financial year 2025-2026 that it would add 15 new personnel to its workforce. Of these, eight positions will be part of a newly established group to oversee cryptocurrency activities.

The new staff will be tasked with boosting market oversight activities and implementing regulations to establish Hong Kong as a center for virtual asset regulation.

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, which represents a 7.2% increase over the 2023-2024 budget.

A large portion of this budget growth will go towards employee costs, including a 2.1% annual salary increase for existing staff members.

The move comes as the Hong Kong government has kept a freeze on SFC staff numbers in three out of the five financial years since 2020.

However, the increasing demand for cryptocurrency regulation has prompted authorities to reconsider.

In 2023, the regulator conducted annual inspections of only 200 licensed entities, despite setting a target of 300 companies.

The hiring of new staff is expected to improve regulatory oversight of the crypto industry and boost the SFC's capabilities in areas such as virtual asset management, market surveillance and law enforcement standards.

Despite the Hong Kong government projecting a budget deficit of HK$100 million ($13 million) for the year, the SFC has been granted additional resources, reflecting the growing importance of cryptocurrency activities.

Authorities have recognized the value in developing Hong Kong into a major hub for innovative crypto initiatives.

As part of these efforts, a new licensing system for cryptocurrency market operators was announced in June 2023. Authorities also plan to regulate stablecoin providers, although stablecoin legislation is still under検討.

By taking these steps, Hong Kong is positioning itself as a global front-runner in cryptocurrency regulation and aiming to stay competitive in the rapidly evolving digital asset landscape.