Hong Kong’s financial regulators cautioned investors to avoid making impulsive bets on stablecoin-linked assets after a spate of sharp price swings tied to speculation, corporate announcements, and unverified claims about licensing plans in the city.
In a joint statement, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) said they had observed abrupt movements in share prices of companies linked to the stablecoin concept.
These shifts often followed news reports, social media posts, or statements suggesting that firms planned to apply for a stablecoin issuer licence, engage in related activities, or explore such initiatives locally. Some claims referenced discussions with the regulators themselves.
HKMA Chief Executive Eddie Yue said dozens of parties have engaged with the regulator about licensing, but stressed that early communication and simply filing an application are not indicators of likely approval.
The process includes meeting capital, governance, risk management, and operational requirements designed to ensure the safety and stability of licensed stablecoins.
The SFC urged investors to remain clear-headed, conduct thorough research, and avoid decisions based solely on short-term price momentum or unsubstantiated online claims. It warned that volatility driven by hype could expose retail traders to significant losses.
The regulators also reminded companies and market participants to avoid making public statements that could mislead investors or create unrealistic expectations, noting that maintaining transparency and accuracy is critical to safeguarding market integrity during the rollout of Hong Kong’s stablecoin framework.
