Hong Kong’s monetary regulators cautioned buyers to keep away from making impulsive bets on stablecoin-linked belongings after a spate of sharp worth swings tied to hypothesis, company bulletins, and unverified claims about licensing plans within the metropolis.
In a joint assertion, the Hong Kong Financial Authority (HKMA) and the Securities and Futures Fee (SFC) mentioned that they had noticed abrupt actions in share costs of corporations linked to the stablecoin idea.
These shifts usually adopted information reviews, social media posts, or statements suggesting that companies deliberate to use for a stablecoin issuer licence, have interaction in associated actions, or discover such initiatives domestically. Some claims referenced discussions with the regulators themselves.
Excessive bar for stablecoin licensing
Hong Kong launched its stablecoin licensing regime earlier this 12 months as a part of a broader push to ascertain town as a regulated hub for digital belongings.
The HKMA mentioned it applies a “rigorous and prudent” method to reviewing purposes, with stringent approval standards and an expectation that solely a small quantity will probably be granted within the preliminary part.
HKMA Chief Government Eddie Yue mentioned dozens of events have engaged with the regulator about licensing, however pressured that early communication and easily submitting an utility should not indicators of probably approval.
The method consists of assembly capital, governance, danger administration, and operational necessities designed to make sure the security and stability of licensed stablecoins.
Traders cautioned
The SFC urged buyers to stay clear-headed, conduct thorough analysis, and keep away from choices primarily based solely on short-term worth momentum or unsubstantiated on-line claims. It warned that volatility pushed by hype may expose retail merchants to important losses.
SFC Chief Government Julia Leung mentioned the regulator will proceed to observe buying and selling intently by way of its devoted market surveillance staff, which makes use of superior methods to detect and examine potential manipulation. She added that the company intends to take strict enforcement motion in opposition to any misleading or deceptive conduct.
The regulators additionally reminded corporations and market contributors to keep away from making public statements that might mislead buyers or create unrealistic expectations, noting that sustaining transparency and accuracy is important to safeguarding market integrity throughout the rollout of Hong Kong’s stablecoin framework.
