Hong Kong regulators warn against fluctuations in the stablecoin market due to speculation.

On August 14, 2025, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) issued a joint statement urging investors to exercise caution when facing speculative assets related to stablecoins, and to avoid impulsive investments triggered by market hype that could lead to significant price fluctuations. This statement was issued in response to the recent significant fluctuations in stock prices in the Hong Kong market due to speculative behavior, corporate announcements, and unverified rumors regarding stablecoin licensing plans, with the aim of maintaining market stability and protecting investors' interests.

Market Frenzy and Regulatory Alarm

Recently, the stock prices of companies related to stablecoins in the Hong Kong market have shown significant fluctuations. According to a joint statement, these fluctuations are often triggered by news reports, social media posts, or certain statements suggesting that the relevant companies plan to apply for stablecoin issuance licenses, engage in related businesses, or explore similar initiatives in Hong Kong. Some rumors even mentioned discussions with regulatory agencies, leading to a strong market response. However, the Hong Kong Monetary Authority and the Securities and Futures Commission have made it clear that early communication or submission of applications does not guarantee that a license will be granted, and investors should be cautious of unverified information.

According to network information on August 14, Hong Kong, as a frontier region for global digital asset regulation, has attracted widespread attention for its strict regulatory stance. Posts on some social media platforms (such as X) show that the market's optimism towards stablecoin-related companies has been exaggerated, with some companies' stock prices soaring due to unverified licensing rumors, only to fall back as market sentiment cooled. This further confirms regulators' concerns about speculative hype.

Stablecoin Licensing System: High Threshold and Strict Requirements

Hong Kong officially launched its stablecoin licensing system in early 2025 as part of its strategy to build a global regulatory center for digital assets. The Hong Kong Monetary Authority stated that the licensing approval process adopts a "rigorous and prudent" approach, with extremely strict standards, and it is expected that only a few applications will be approved in the initial phase. Eddie Yue, the president of the Hong Kong Monetary Authority, revealed that dozens of parties have already contacted the regulatory agency regarding licensing matters, but he emphasized that the application process involves requirements in various aspects such as capital adequacy, corporate governance, risk management, and operational capability, aiming to ensure the security and stability of the licensed stablecoin.

Network information shows that Hong Kong's stablecoin regulatory framework is considered one of the most rigorous systems globally. Regulators not only require applicants to have strong technical and financial capabilities but also to demonstrate their ability to effectively manage market risks and protect investor interests. This high threshold is designed to prevent excessive speculation in the market and ensure the long-term healthy development of the digital asset market.

Investor Warning: Invest rationally and avoid blindly following trends.

The Chief Executive Officer of the Securities and Futures Commission, Liang Fengyi, urged investors to remain rational in a statement, to conduct thorough due diligence, and to avoid making investment decisions based solely on short-term price momentum or unverified online rumors. She warned that market fluctuations caused by speculation could lead to significant losses for retail investors. The Securities and Futures Commission stated that its specialized market surveillance team will continuously monitor trading activities using advanced systems to detect and investigate potential market manipulation and will take stringent enforcement actions against any deceptive or misleading behavior.

Some analytical articles on the internet point out that the recent fluctuations in stablecoin-related assets are closely related to misinformation on social media. For example, some posts claim that certain companies are close to obtaining stablecoin issuance licenses, but in reality, these companies are only in the initial stages of contact with regulatory authorities. The statements from regulatory bodies aim to curb the spread of such misleading information and protect investors from the harm of false hype.

Maintaining market integrity: Transparency is crucial.

The joint statement also specifically reminds companies and market participants to avoid misleading investors or creating unrealistic expectations when issuing public statements related to stablecoins. Regulators emphasize that maintaining transparency and accuracy of information is crucial for upholding market integrity during the implementation of the stablecoin regulatory framework in Hong Kong. Any attempts to influence the market through exaggerated or false statements may face strict regulatory penalties.

Conclusion

The joint statement by the Hong Kong Monetary Authority and the Securities and Futures Commission clearly conveys their cautious attitude towards the speculative frenzy in the stablecoin market and their firm determination to maintain financial market stability. Through a strict licensing system and market supervision, Hong Kong is striving to set a benchmark for compliance and transparency in the global digital asset space. Investors should remain rational, be wary of unverified market rumors, and avoid losses due to blind following. Hong Kong's regulatory measures not only inject stability into the local market but also provide important reference for global digital asset regulation.