February 6, 2025
By Anjali Kochhar
Hong Kong’s Securities and Futures Commission (SFC) is set to bolster its oversight of the burgeoning crypto market by significantly increasing its staff dedicated to virtual asset regulation. In a two-year budget plan recently presented to the Legislative Council (Legco), the SFC announced plans to hire 15 new employees, with eight of those roles specifically focused on crypto-related matters such as market surveillance and enforcement investigations.
This move marks a notable shift for a regulator that had maintained a relatively static headcount over the past several financial years. Despite a freeze in staffing during three of the five financial years since 2020, the SFC is now aggressively expanding its team to better manage the fast-evolving digital asset landscape. “Eight of the proposed new headcount is for enhancing the staffing support for virtual asset regulatory regimes, market surveillance, and enforcement investigations,” the budget document stated.
The decision to increase staffing comes amid broader efforts by Hong Kong to establish a robust regulatory framework for the crypto industry. In June 2023, the region introduced a new licensing regime for crypto companies, and last year, authorities signaled plans to license stablecoin providers—a bill concerning stablecoins that is still under discussion. These initiatives reflect Hong Kong’s commitment to ensuring a secure and transparent crypto ecosystem while encouraging responsible innovation.
However, the SFC’s hiring plans are unfolding against a challenging fiscal backdrop. Hong Kong is currently grappling with a budget deficit forecasted to reach HK$100 million (approximately US$13 million) this year. Industry observers note that while the budget deficit may prompt further cost-cutting measures later this month, the prioritization of crypto regulation staffing underscores the government’s determination to stay ahead of the rapidly changing market dynamics.
By doubling down on regulatory oversight and strengthening its team, Hong Kong aims to not only safeguard market integrity but also bolster investor confidence in the digital asset space. This strategic staffing expansion is expected to play a key role in the region’s ongoing efforts to balance innovation with risk management in one of the world’s most influential financial hubs.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
