The Hong Kong Securities and Futures Commission (SFC) warns that the new stablecoin regulatory framework has amplified fraud risks, urging investors to proceed with caution amid market hype.
SFC’s Ye Zhiheng noted that some stablecoin companies experienced drastic losses following the new regulations. Investors should be cautious of price movements driven by speculation related to stablecoins.
The Stablecoin Ordinance has criminalized unlicensed fiat-referenced stablecoins for retail investors. Hong Kong regulators will closely watch trading practices and are prepared to act against manipulative behavior.
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