The Hong Kong Monetary Authority and the Securities and Futures Commission issued a joint statement: Watch out for stablecoin market fluctuations, rational investment is crucial.

On August 14, the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong issued the following joint statement regarding recent market fluctuations related to stablecoins. The Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong urged the public to remain cautious, analyze information carefully, and avoid making irrational investment decisions based solely on market speculation or price trends. The public should remember to make thoughtful and informed decisions in volatile environments, as it is crucial for risk mitigation. The Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong noted recent market fluctuations related to the concept of stablecoins. These fluctuations appear to stem from announcements, news, social media posts, or market speculation regarding the application for stablecoin issuer licenses in Hong Kong, activities related to such licenses, or discussions on the feasibility of such plans. Some claims also mentioned recent contact with the Hong Kong financial regulatory authorities. The Hong Kong Monetary Authority reiterated that a prudent and cautious approach will be taken in considering applications for stablecoin issuer licenses, with high thresholds set. The Hong Kong Monetary Authority emphasized that expressing intention or submitting a stablecoin license application, as well as communication with the Hong Kong Monetary Authority and relevant institutions, is only part of the licensing process, and whether a license will be granted ultimately depends on whether the application meets the licensing conditions. Given the significant uncertainty surrounding these plans or application outcomes, the above fluctuations driven by market sentiment or speculation highlight the importance of remaining vigilant during market enthusiasm. Drastic fluctuations in stock prices can lead to irrational decision-making, exposing investors to unnecessary risks. In light of this, the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong urged the public to remain cautious, analyze information thoroughly, and avoid making irrational investment decisions based solely on market speculation or price trends. The public should remember to make thoughtful and informed decisions in volatile environments, as risk mitigation is crucial. Additionally, market participants should act responsibly in public communication, avoiding statements that may mislead investors or create unrealistic expectations. To maintain a fair and stable market and protect investors, the Securities and Futures Commission of Hong Kong has established a dedicated market surveillance team and advanced, validated systems to closely monitor trading activities in Hong Kong. The Securities and Futures Commission of Hong Kong will take strict action against any manipulation or fraudulent behavior that may harm market integrity and stability. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that the Hong Kong Monetary Authority adopts a strict and cautious approach in approving applications for stablecoin issuer licenses. The approval standards are very high, and only a few licenses will be granted in the early stages. As part of normal market communication, the Hong Kong Monetary Authority has already had preliminary discussions with several institutions regarding stablecoin licenses. These discussions, as well as expressions of intent and applications for licenses, do not constitute approval for any institution, nor do they imply any recognition of the prospects for obtaining a license. Alice Law, Chief Executive of the Securities and Futures Commission of Hong Kong, stated that the recent price fluctuations related to the concept of stablecoins underscore the need for investors to clearly understand the risks involved in their investments and the potential financial losses they may incur. In addition to conducting thorough analysis on their own, investors should remain vigilant against the allure of short-term price fluctuations and be cautious of unverified claims, especially those appearing on social media. The Securities and Futures Commission of Hong Kong will continue to closely monitor market activities and will not hesitate to take strong action to maintain market integrity and stability and protect investors from unnecessary risks.