A Hong Kong Securities and Futures Commission (SFC) official issued a warning that the new local stablecoin regulatory framework has heightened fraud risks. Ye Zhiheng, executive director at the SFC, advised investors to be cautious and avoid irrational decisions fueled by market hype. This warning follows recent market movements where firms that announced plans to seek stablecoin licenses experienced sharp price increases. The SFC and the Hong Kong Monetary Authority (HKMA) recently highlighted abrupt market changes connected to stablecoins, suggesting a link to corporate announcements and speculation about licensing. The SFC is intensifying monitoring of trading activities to counter potential market manipulation. As Hong Kong enforces its Stablecoin Ordinance, which introduces stringent requirements for stablecoin issuers, the regulatory landscape for these digital assets is becoming more defined.

Source đź”—