Hong Kong's SFC Looks to Boost Headcount, With Half the New Roles Dedicated to Crypto

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

Hong Kong's Securities and Futures Commission (SFC) is planning to increase its headcount by 15 people over the next two years, with more than half of the new roles being dedicated to regulating crypto, according to a budget plan that was presented to the Legislative Council on Monday.

The SFC has been gradually increasing its focus on crypto regulation in recent years, and the new roles will help the regulator to further its efforts to supervise 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 said.

The SFC's increased headcount comes as the Hong Kong administration is facing a budget deficit that is forecast to reach $HK100 million ($13 million) this budget year, according to the South China Morning Post. The government is set to announce budget cuts later this month.

In June 2023, Hong Kong unveiled a new licensing regime for crypto companies that are operating in the city. TheSFC began accepting applications from crypto exchanges and other service providers in late September.

Last year, the SFC also said that it would begin licensing stablecoin providers in Hong Kong. The country's stablecoin bill is still being discussed by lawmakers.