Hong Kong’s SFC to Strengthen Cryptocurrency Regulatory Team
Expanding the Cryptocurrency Regulatory Workforce
The Securities and Futures Commission (SFC) of Hong Kong is gearing up to enhance its cryptocurrency regulatory framework by expanding its workforce in the upcoming fiscal year. In its recently published budget proposal for 2025-26, the SFC has revealed plans to introduce 15 new positions, with eight roles dedicated specifically to the oversight of virtual assets.
The budget proposal highlights the SFC’s commitment to boosting its capacity for monitoring market activities, conducting enforcement investigations, and ensuring compliance within the burgeoning crypto sector. This strategic move aligns with Hong Kong’s ambition to become a global leader in cryptocurrency and digital asset innovation. By allocating additional resources, the SFC aims to improve market surveillance and tackle challenges associated with licensing and supervision.
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At present, the SFC has been depending on personnel experienced in traditional financial regulation to manage virtual asset activities. However, the rapid evolution and increasing complexity of the crypto market underscore the necessity for specialized expertise.
Enhanced Budget and Staffing Strategy
For the fiscal year 2025-26, the SFC plans an overall expenditure of HK$2.59 billion (approximately $332.4 million), representing a 7.2% increase from the previous year’s forecast. This surge in budget is chiefly driven by higher personnel costs, including an average salary increment of about 2.1% and the formation of new positions. These financial adjustments underscore the growing significance of virtual asset regulation within the commission’s extensive mandate.
In addition to the proposed augmentations in staff, the SFC has acknowledged the limitations of its current oversight capabilities. For example, it managed to conduct on-site inspections of only around 200 licensed entities in 2023, which was below the intended target of 300. The planned expansion is designed to bridge these gaps, ensuring more robust supervision and more frequent inspections of licensed crypto firms operating in Hong Kong.
Ongoing Efforts in Cryptocurrency Oversight
Beyond the latest staffing and budgetary initiatives, Hong Kong’s SFC has made significant strides to bolster its oversight of the regional cryptocurrency market. Notably, the agency recently identified over a dozen fraudulent platforms falsely claiming affiliation with HashKey, a licensed cryptocurrency trading platform in Hong Kong.
These deceptive websites use variations of the official HashKey Exchange domain, www.hashkey.com, by adding combinations of letters, numbers, or symbols to mislead clients. HashKey Exchange has issued a statement clarifying that it has no connection with these fraudulent websites and disclaims any liability related to them.
By taking proactive measures against fraudulent activities and enhancing its regulatory workforce, Hong Kong’s SFC continues to fortify its oversight capabilities, supporting the city’s vision to emerge as a premier hub for digital asset innovation.
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