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Hong Kong’s Securities and Futures Commission (SFC) unveiled plans to expand its workforce, with a significant focus on the regulation of cryptocurrencies. The SFC, in a two-year budget plan presented to the Legislative Council, has proposed the addition of 15 new roles, over half of which will be dedicated to crypto regulation efforts.
The move to increase the SFC’s headcount comes after a period of restraint, with the commission maintaining a steady number of employees in three out of the past five financial years since 2020. The proposed expansion is indicative of the regulator’s intensified commitment to overseeing the virtual asset sector.
According to the budget plan, "Eight of the proposed new headcount is for enhancing the staffing support for virtual asset regulatory regimes, market surveillance and enforcement investigations." This increase in personnel is poised to bolster the SFC’s capabilities in a rapidly evolving financial landscape.
The SFC’s decision to enhance its regulatory team coincides with a challenging economic environment in Hong Kong. The administration is grappling with a budget deficit that is projected to hit $HK100 million ($13 million) this year. Despite the financial constraints, the SFC is prioritizing the regulation of virtual assets, even as the region anticipates budget cuts to be announced later in April 2023.
Hong Kong has been actively shaping its approach to cryptocurrency regulation. In June 2023, the region launched a new licensing regime for crypto companies, signaling a more structured approach to the industry. Furthermore, the government has indicated plans to extend licensing to stablecoin providers, with discussions around the country’s stablecoin bill continuing to unfold.
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