SFC’s Crypto Crusade: A Staffing Surge in Hong Kong!

Oh, the intrigue! Hong Kong’s Securities and Futures Commission (SFC) is on a mission to expand its crypto oversight team. Why, you ask? To strengthen market surveillance, hasten exchange approvals, and transform the city into a global crypto haven, of course!

The SFC aims to double down on its crypto aspirations, proposing an expansion of its regulatory prowess in the virtual asset realm. Eight new staff members will join the force, dedicated to monitoring trading platforms, enhancing surveillance, and tightening enforcement.

The SFC’s budget plan for the 2025-26 financial year unveiled a 7.2% increase in recurrent expenditure, reaching a whopping HK$2.59 billion ($332.4 million). A significant portion of this growth, HK$130.5 million ($16.7 million), is attributed to higher staff costs, including an average salary increase of 2.1%.

With the additional hires, the SFC hopes to address its previous shortcomings. In 2023, the regulator conducted only 200 on-site inspections of licensed financial firms, falling short of its goal of 300. The SFC aspires to remedy this deficiency and bolster its supervision of Hong Kong’s crypto ecosystem with the influx of new personnel.

A Swift Path to Licensing

Hong Kong has been diligently positioning itself as a desirable destination for crypto businesses. In June 2023, the city introduced its licensing regime for Virtual Asset Trading Platforms (VATPs), enabling approved exchanges to cater to retail investors under a structured framework. This shift signaled a departure from the past, where crypto access was primarily limited to institutional players.

Since then, the government has been refining its regulatory approach, including advancing a proposed stablecoin oversight framework. The SFC, in its wisdom, has been actively collaborating with trading platforms to expedite the licensing process. The commission’s proactive engagement has indeed sped up approvals and reinforced compliance expectations.

The fruits of this endeavor are now apparent. On Jan. 27, the SFC issued its first two licenses of 2025, bestowing the title of licensed crypto exchanges upon PantherTrade and YAX. With these approvals, the total number of licensed VATPs in Hong Kong reached nine, joining the ranks of esteemed exchanges such as OSL and HashKey.

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2025-02-04 09:48