The SFC and HKMA issued a joint statement on August 14, 2025, addressing recent market movements linked to stablecoins. They highlighted the risks of market hype and volatility and emphasized the importance of informed decision-making and market integrity.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On August 14, 2025, the Securities and Futures Commission ("SFC") and the Hong Kong Monetary Authority ("HKMA") released a joint statement addressing market fluctuations tied to stablecoin developments in Hong Kong.
The HKMA underscored its rigorous approach to evaluating stablecoin licence applications, noting that any interest shown by potential applicants is part of the licensing process. The issuance of licences is contingent on meeting strict criteria.
The joint statement warned that speculative enthusiasm could lead to heightened market volatility and irrational decisions, thereby exposing investors to undue risks. Both regulatory bodies called for investors to exercise caution, conduct thorough research, and avoid impulsive investment choices based on market excitement or price trends.
The SFC’s dedicated market surveillance team will closely monitor trading activities in Hong Kong to maintain market integrity and protect investors, taking stern action against manipulative or deceptive practices.
Ms. Julia Leung, CEO of the SFC, stressed the importance of investors being well-informed about risks and potential financial losses. She advised against being swayed by unsubstantiated claims, particularly those found on social media, and to be wary of the misleading prospects of short-term price volatility.
Mr. Eddie Yue, CEO of the HKMA, affirmed that the authority employs a strict and cautious approach in assessing stablecoin licence applications. The approval thresholds are high, and only a select few licences will be granted initially. He noted that preliminary communications with numerous entities regarding stablecoin licensing do not imply approval or endorsement.
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