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 firms linked to the stablecoin idea.
These shifts usually adopted information studies, 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 the town as a regulated hub for digital property.
The HKMA stated 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 stated dozens of events have engaged with the regulator about licensing, however careworn that early communication and easily submitting an software will not be indicators of possible approval.
The method contains 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 selections primarily based solely on short-term worth momentum or unsubstantiated on-line claims. It warned that volatility pushed by hype might expose retail merchants to vital losses.
SFC Chief Government Julia Leung stated the regulator will proceed to watch buying and selling intently by means 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 firms and market members to keep away from making public statements that might mislead buyers or create unrealistic expectations, noting that sustaining transparency and accuracy is vital to safeguarding market integrity through the rollout of Hong Kong’s stablecoin framework.
