Hong Kong’s SFC Proposes Crypto Staff Expansion

Hong Kong’s SFC Focuses on Strengthening Crypto Market Surveillance
The Securities and Futures Commission of Hong Kong (SFC) seeks to expand its regulatory workforce in order to strengthen its oversight of cryptocurrency operations. The SFC budget for 2025-2026 includes plans to establish 15 new positions where eight will concentrate on virtual asset regulation and market surveillance and enforcement investigations. The Hong Kong government advances its goal to become a global crypto hub through its initiative to strengthen its regulatory framework.

Increased Budget Allocation for Enhanced Regulatory Capabilities
The SFC plans to invest HK$2.59 billion ($332.4 million) in its budget for the upcoming 2025-2026 fiscal period which represents a 7.2% increase from last year. The majority of this budget increase supports staff expenses with staff members set to receive a 2.1% average pay rise.

The SFC continues to work on crypto-related regulations while facing difficulties reaching its inspection goals since it conducted 200 inspections in 2023 instead of the target of 300. The approach aims to close systemic gaps and address regulatory efficiency concerns.

Hong Kong Strengthens Its Crypto Licensing Regime
Since June 2023 when Hong Kong established its crypto licensing framework the city continues to welcome cryptocurrency companies. The SFC has accelerated its licensing process for virtual asset trading platforms (VATPs) to attract additional regulated players in the market.

The SFC issued nine platform licenses by December 2023 which included PantherTrade and YAX. The ongoing development of the stablecoin bill positions Hong Kong to become a leading force in worldwide crypto operations.

Hong Kong Poised for Stronger Crypto Regulation
With the SFC’s proposed staff expansion and increased budget, Hong Kong is enhancing its position as a global crypto leader. The city’s focus on accelerating crypto licensing and developing the stablecoin bill showcases its commitment to fostering a secure, transparent environment for crypto businesses, which will likely attract more international players and reinforce its role as a key crypto hub.