Hong Kong’s monetary regulators cautioned buyers to keep away from making impulsive bets on stablecoin-linked property 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) stated that they had noticed abrupt actions in share costs of corporations linked to the stablecoin idea.
These shifts usually adopted information studies, social media posts, or statements suggesting that corporations deliberate to use for a stablecoin issuer licence, interact 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 yr as a part of a broader push to determine town as a regulated hub for digital property.
The HKMA stated it applies a “rigorous and prudent” strategy to reviewing purposes, with stringent approval standards and an expectation that solely a small quantity will likely be granted within the preliminary part.
HKMA Chief Govt Eddie Yue stated dozens of events have engaged with the regulator about licensing, however burdened that early communication and easily submitting an software aren’t indicators of probably approval.
The method consists of assembly capital, governance, danger administration, and operational necessities designed to make sure the protection and stability of licensed stablecoins.
Buyers cautioned
The SFC urged buyers to stay clear-headed, conduct thorough analysis, and keep away from selections 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 vital losses.
SFC Chief Govt Julia Leung stated the regulator will proceed to observe buying and selling carefully by way of its devoted market surveillance crew, which makes use of superior techniques to detect and examine potential manipulation. She added that the company intends to take strict enforcement motion towards any misleading or deceptive conduct.
The regulators additionally reminded corporations and market contributors to keep away from making public statements that would mislead buyers or create unrealistic expectations, noting that sustaining transparency and accuracy is important to safeguarding market integrity through the rollout of Hong Kong’s stablecoin framework.
