SFC Boosts Crypto Regulation Team Amidst Budget Deficit

Hong Kong's Securities and Futures Commission (SFC) is set to bolster its workforce, with a significant portion of the new hires dedicated to regulating the cryptocurrency industry. According to a two-year budget plan presented to the Legislative Council, the region's legislative body, the SFC aims to add 15 new positions, eight of which will focus on crypto regulation.

The SFC's commitment to crypto regulation comes despite freezing its headcount in three of the past five financial years. The budget, presented on Monday, highlights that these new hires will support virtual asset regulatory regimes, market surveillance, and enforcement investigations.

The expansion of the SFC's crypto team coincides with Hong Kong's administration facing a budget deficit projected to reach HK$100 million (US$13 million) this year. Despite the financial challenges, the government is moving forward with its plans to regulate the crypto industry, having initiated a new licensing regime for crypto companies in June 2023. Last year, it also announced plans to license stablecoin providers, with the stablecoin bill still under discussion.