Joint Statement by HKMA and SFC on Stablecoin Market Movements. Highlighted are recent market fluctuations related to stablecoins. Both agencies urge caution, informed decision-making, and market integrity.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Hong Kong Monetary Authority ("HKMA") and the Securities and Futures Commission ("SFC") released a joint statement on 14 Aug 2025 regarding recent market fluctuations related to stablecoins. They noted that significant market movements have been linked to stablecoins, often triggered by news or announcements about stablecoin licenses, related activities, or feasibility studies in Hong Kong.
The HKMA reinforced its stringent and cautious approach to stablecoin license applications, with a rigorous approval process. Any indication of interest or communication regarding stablecoin licenses is part of the licensing procedure but does not guarantee approval. The agencies highlighted the risks associated with irrational investment decisions driven by market excitement or speculation.
Market participants were advised to communicate responsibly and avoid misleading investors. The SFC's market surveillance team will closely monitor trading activities to maintain market integrity and safeguard investors against manipulative practices.
Mr. Eddie Yue, HKMA's Chief Executive, emphasized that stablecoin license approvals will be rigorous and selective, with a few licenses initially granted. Ms. Julia Leung, SFC's Chief Executive Officer, underscored the importance for investors to understand the risks associated with stablecoins and be cautious about unrealistic claims, especially on social media.
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