The financial supervisors of Hong Kong warned investors to prevent impulsive bets on stablecoin-linked assets after a wave of competitive price fluctuations are associated with speculations, announcements of companies and non-orified claims about license 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 stock prices of companies linked to the Stablecoin concept.
These shifts often followed news items, messages on social media or statements that suggest that companies intended to request a license for Stablecoin -emittent, to take on related activities or explore such initiatives locally. Some claims referred to discussions with the supervisors themselves.
High Lat for Stablecoin Licencies
Earlier this year, Hong Kong introduced his Stablecoin License regime as part of a broader push to establish the city as a regulated Hub for digital assets.
The HKMA said it applies a “rigorous and careful” approach for assessing applications, with strict approval criteria and an expectation that only a small number will be granted in the initial phase.
HKMA Chief Executive Eddie Yue said that dozens of parties are concerned with the regulator on licenses, but emphasized that early communication and the easy submission of an application are not indicators of likely approval.
The process includes compliance with capital, governance, risk management and operational requirements that are designed to guarantee the safety and stability of licensed stablecoins.
Investors warned
The SFC insisted on investors to stay clear, to do thorough research and to avoid decisions based exclusively on price momentum in the short term or non-supported online claims. It warned that the volatility that is driven by the hype could expose retail traders to considerable losses.
SFC top man Julia Leung said that the regulator will continue to follow the trade closely through its special market monitoring team, which uses advanced systems to detect and investigate potential manipulation. She added that the agency intends to take strict enforcement measures against any misleading or misleading behavior.
The supervisors also reminded companies and market participants to prevent them from making public statements that investors can mislead or create unrealistic expectations, and note that maintaining transparency and accuracy is of crucial importance to protect market integrity during the roll -out of the Stabilecoin of Hong -framework.