Hong Kong Doubles Down on Crypto Regulation With Staff Hires

Hong Kong’s Securities and Futures Commission (SFC) is looking to increase its headcount, with more than half the added roles dedicated to regulating crypto, according to a two-year budget plan presented to the Legislative Council, the region’s legislative body known as Legco.

Despite freezing its headcount in three of the five financial years since 2020, it is looking to add another 15 people, eight of whom will be dedicated to crypto as the regulator furthers its commitment to regulate the industry.

“Eight of the proposed new headcount is for enhancing the staffing support for virtual asset regulatory regimes, market surveillance and enforcement investigations,” the budget presented on Monday said.

The growth comes as Hong Kong’s administration faces a budget deficit that is forecast to reach $HK100 million ($13 million) this year and is likely to announce budget cuts later this month, the South China Morning Post reported.

In June 2023, Hong Kong initiated a new licensing regime for crypto companies. Last year it said it would also license stablecoin providers. The country’s stablecoin bill is still being discussed.