Emily Walker
The Securities and Futures Commission (SFC) in Hong Kong plans to boost its cryptocurrency regulation team in the next financial year.
As part of the 2025-26 budget proposal, the SFC has detailed intentions to add 15 new positions, with eight of these roles dedicated to overseeing virtual assets.
The budget statement highlights that these new positions will strengthen the SFC’s capacity to monitor market activities, perform enforcement checks, and ensure compliance in the cryptocurrency sector.
This initiative corresponds with Hong Kong’s ambition to establish itself as a premier destination for cryptocurrency and digital asset advancements. The SFC noted that these resources will enhance market oversight and tackle issues related to licensing and supervision.
Currently, the SFC utilizes teams skilled in conventional financial regulation to manage virtual asset oversight. However, the complexities of the cryptocurrency landscape have underscored the necessity for specialized knowledge.
Budget Overview and Staffing Initiatives
The SFC’s budget for the fiscal year 2025-26 is projected at HK$2.59 billion (around $332.4 million), signifying a 7.2% increase compared to the prior year’s estimate.
This increase is primarily due to rising personnel expenses, with an average salary hike of roughly 2.1% and the addition of new job roles. These financial changes reflect the escalating significance of virtual asset governance within the SFC’s broader responsibilities.
Alongside the potential new hires, the SFC has recognized that its current oversight capacity is under pressure. For example, in 2023, it only conducted on-site inspections for about 200 licensed companies, which was below its goal of 300.
The regulator’s expansion aims to fill these gaps, ensuring stronger oversight and more regular inspections of registered cryptocurrency firms in Hong Kong.
Ongoing Cryptocurrency Regulation Efforts in Hong Kong
Beyond staffing and budgeting updates, the SFC has undertaken significant actions recently to enhance its scrutiny of the region’s cryptocurrency market.
For example, the commission recently identified several fraudulent platforms that were misleading clients by pretending to be connected to HashKey, a legitimate cryptocurrency trading platform in Hong Kong. HashKey explained in a statement:
Fraudulent websites often mimic or alter the official HashKey Exchange web address www.hashkey.com, adding various letters, numbers, or symbols to deceive customers. HashKey Exchange asserts that it has no association with these scam sites, which are entirely independent. We will not take responsibility for any issues arising from these fraudulent websites.
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