The Hong Kong (HKMA) and the Hong Kong Monetary Authority have issued a joint statement on recent market movements in relation to Stablecoins.
The SFC and HKMA have recently scored steep market movements associated with the concept of Stablecoin. These movements appear to be following corporate announcements, news reports, social media positions or speculation on plans to apply for Stablecoin license, participate in related activities or explore the feasibility of such initiatives in Hong Kong.
Some of these claims have also reported recent commitments with financial regulatory authorities in Hong Kong.
HKMA reiterated that it adopts a strong and prudent approach, with a reasonably high bar, examining applications for Stablecoin. HKMA stresses that an indication of interest or application for Stablecoin license and HKMA’s communication with the entities concerned is only part of the licensing process. License will be determined by the fulfillment of the licensing criteria.
Given the significant uncertainties surrounding the results of these preliminary plans or applications, the sudden movements of the market marked above, often driven by enthusiasm or speculation, emphasize the need to remain careful in these frenzies. This increased variability of shares prices can lead to irrational decisions, thereby exposing investors to unjustified risks.
In the light of this phenomenon, the SFC and HKMA informed the public to pay attention, to conduct a thorough investigation and to avoid making irrational investment decisions based solely on the market campaign or prices. They should remember well and up -to -date and up -to -date decision -making decisions are necessary to alleviate the risks in times of increased volatility.
Market participants are recalled to take responsibility for public communications and to avoid making statements that could mislead investors or create unrealistic expectations.
In order to preserve market integrity and protect investors, the SFC special surveillance team, equipped with advanced and proven systems, will closely monitor commercial activities in Hong Kong. Will take strict actions against any manipulation or misleading practices that could endanger the integrity of the market.
Mrs Julia Leung, CEO of SFC, said:
“Recent shares prices associated with the concept of Stablecoin emphasize the importance that investors are clear about the dangers involved and the possible financial losses from the relevant investments. Taking dynamic and decisive actions to maintain market integrity and protection of investors.
Mr. Eddie Yue, chief executive of HKMA, said:
“HKMA adopts a rigorous and prudent approach to evaluate applications for Stablecoin version license. Prospects.”