Nikolas Sargeant
In its proposed budget for the fiscal year 2025-2026, Hong Kong’s Securities and Futures Commission (SFC) has outlined plans to expand its regulatory staff, specifically focusing on cryptocurrency oversight. As part of the proposal, the SFC seeks to add 15 new positions, eight of which will be dedicated to bolstering efforts in regulating virtual assets, enhancing market surveillance, and conducting enforcement investigations. The move is part of Hong Kong’s broader strategy to establish itself as a global hub for crypto innovation while ensuring robust oversight and compliance.
The SFC's budget proposal, which was presented on Monday, includes a significant 7.2% increase in recurrent expenditure, amounting to HK$2.59 billion ($332.4 million). A large portion of this increase will go toward higher staffing costs, with an average salary hike of 2.1%. The regulator emphasized that this expansion is necessary, as it has had to deal with an increasing volume of crypto-related regulatory work, especially after the launch of its crypto licensing regime for virtual asset trading platforms (VATPs) in June 2023.
Part of a LArger Crypo Push
The SFC has already been engaging with crypto firms and accelerating the licensing process, with two additional crypto trading platforms—PantherTrade and YAX—being granted licenses in December 2023. However, despite these efforts, the SFC has faced challenges in meeting its inspection targets, falling short by 100 firms in 2023. The staff expansion will address these gaps, helping the SFC meet its regulatory goals and better manage its growing portfolio of licensed virtual asset platforms.
Hong Kong’s ongoing commitment to the crypto sector is evident in its evolving regulatory landscape. The SFC’s proposed budget highlights its determination to improve market oversight, build stronger regulatory frameworks, and foster a safer environment for digital asset trading. As the region continues to attract global crypto businesses, this staff expansion will play a crucial role in ensuring that the sector operates with transparency, security, and compliance in line with international standards.
