The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued a joint statement responding to abrupt market movements associated with the “stablecoin concept”, warning that share price volatility appears to be driven by corporate announcements and speculation about plans to apply for a stablecoin issuer licence or pursue related activities in Hong Kong. The authorities urged investors to exercise caution, conduct thorough research and avoid decisions based on market hype or short-term price momentum. The HKMA reiterated that stablecoin issuer licensing will be assessed under a robust and prudent approach with a reasonably high bar, and that expressions of interest, applications and regulator communications are only part of the process rather than indicators of approval. It also noted that only a handful of licences will be granted initially and that it has been in preliminary communication with dozens of parties as part of market engagement. Market participants were reminded to act responsibly in public communications and avoid statements that could mislead investors or create unrealistic expectations, while the SFC stated its dedicated market surveillance team will closely monitor trading and take stringent action against manipulative or deceptive practices.

Original source View in tracker