The Securities and Futures Commission of Hong Kong plans to hire more people to help improve the regulatory supervision of crypto firms.
In an attempt to boost the regulatory supervision of the local crypto firms, the Securities and Futures Commission of Hong Kong would hire four more additional staff. This was mentioned in a recent budget report filed by the commission, which stated that in view of the rising crypto companies in Hong Kong, the additional posts would help supervise the crypto space better.
“This is in response to an increasing number of operators who have expressed interest in carrying on VA activities such as trading platforms and the management of VA funds. The new posts will allow the SFC to strengthen and develop our supervisory VASP regime to better assess compliance and the risks of allowing retail investors to trade virtual assets on the approved platform,” said the report, referring to the new licensing regime to be implemented from June 2023.
The new hires would increase the headcount by 0.4%, enabling the Securities and Futures Commission to prepare well for the upcoming licensing regime. Hong Kong has put in a lot of effort to increase crypto adoption to make the region a crypto hub. It also plans to deploy an additional $500 million to contribute towards the goal.
Hong Kong also has future plans to develop a complete regulatory framework for stablecoins in the region, which are fully backed. Regulatory authorities have been completely against algorithmic stablecoins in their latest regulation.