The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) issued a joint warning following abrupt market movements linked to the “stablecoin” concept, which they said appear to be driven by corporate announcements, media and social media speculation, and claims about plans to seek a stablecoin issuer licence in Hong Kong. The HKMA reiterated that stablecoin issuer licensing will be assessed under a robust and prudent approach with a high approval threshold, and that indications of interest, licence applications, and regulator communications form part of the process and do not imply approval or endorsement. The authorities urged investors to exercise caution, conduct thorough research, and avoid decisions based on market hype or price momentum, and reminded market participants to communicate responsibly and avoid statements that could mislead investors. The SFC said its market surveillance team will closely monitor trading activity and take stringent action against manipulative or deceptive practices.

Original source View in tracker