Hong Kong’s financial regulators, the HKMA and SFC, have cautioned investors against making hasty investments in stablecoin-related assets due to recent sharp price fluctuations tied to speculation and unverified licensing claims. The HKMA emphasized its strict approval process for stablecoin licenses, noting that only a few applicants will meet the rigorous capital, governance, and risk management requirements. Meanwhile, the SFC urged investors to avoid decisions based on hype and warned of potential market manipulation, pledging strict enforcement against misleading conduct. The regulators also reminded companies to maintain transparency to uphold market integrity as Hong Kong rolls out its stablecoin framework.
about Hong Kong Warns Investors on Stablecoin Hype Risks