The HKMA and SFC have warned about recent abrupt market movements linked to stablecoin-related announcements, speculations, and social media posts. Regulators emphasized that:
- Licensing process is rigorous: The HKMA maintains a high threshold for granting stablecoin issuer licences. Early communications, applications, or expressions of interest do not imply approval or endorsement. Only a limited number of licences will be issued initially.
- Market volatility is risky: Speculative hype around stablecoins has led to sharp price swings, which may drive irrational investor decisions and expose the public to undue risks.
- Investor caution is urged: Investors should avoid decisions based solely on hype or price momentum and instead conduct thorough research and make well-informed choices.
- Market integrity will be safeguarded: The SFC will closely monitor trading activities with advanced surveillance systems and take firm action against manipulative or misleading practices.
- Public communication responsibility: Market participants should avoid making statements that could mislead investors or create unrealistic expectations.
Both regulators reiterated their commitment to a prudent approach, protecting investors, and maintaining the integrity of Hong Kong’s financial markets.
https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/08/20250814-8
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