SFC Proposes HK$2.38B Deficit, 15 New Roles to Boost Virtual Asset Regulation and Tech Capabilities

The Hong Kong Securities and Futures Commission (SFC) has submitted a new budget proposal for the upcoming financial year to the Legislative Council's Financial Affairs Panel. The revised deficit forecast for the current financial year (2024/25) is set at HK$1.48 billion, while a deficit of HK$2.38 billion is expected for the 2025/26 fiscal year. Additionally, the SFC has proposed the creation of 15 new positions, with 8 aimed at enhancing manpower support for virtual asset regulatory systems, market surveillance, and enforcement investigations, and 7 focused on strengthening information technology and institutional support.

The SFC's proposal comes as the region continues to grapple with the challenges posed by the rapid growth and evolution of virtual assets. The new roles will help the SFC to better monitor and regulate the virtual asset market, ensuring that investors are protected and that the market remains stable and secure. The SFC has been actively engaged in the development of virtual asset regulations, and this latest proposal is a further indication of its commitment to this area.

The SFC's budget proposal also includes plans to strengthen the region's financial infrastructure. The 7 new positions focused on information technology and institutional support will help the SFC to improve its technological capabilities and enhance its ability to support the region's financial industry. This is an important step in ensuring that the region remains competitive in the global financial landscape.

The SFC's proposal is subject to approval by the Legislative Council's Financial Affairs Panel. If approved, the new roles will be created in the upcoming financial year, starting from April 1, 2025. The SFC will continue to work closely with the industry and other stakeholders to ensure that the region's financial market remains robust and resilient in the face of changing market conditions.