Hong Kong’s HKMA and SFC warned investors against speculative hype around stablecoin licensing
The post Hong Kong’s HKMA and SFC warned investors against speculative hype around stablecoin licensing appeared on BitcoinEthereumNews.com. Hong Kong’s top financial regulators have warned investors to exercise restraint amid a flurry of speculation surrounding stablecoin licensing and the expansion of cryptocurrency exchange-traded funds (ETFs) in the city. In a joint statement on Thursday, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) said they had observed “abrupt market movements” linked to the stablecoin sector in recent days. The volatility, they said, appeared to follow “corporate announcements, news reports, social media posts or speculation” about applications to become licensed stablecoin issuers in Hong Kong. The warning comes as two new spot cryptocurrency ETFs, the MicroBit Bitcoin spot ETF and MicroBit Ethereum spot ETF, prepare to list on the Hong Kong Stock Exchange on August 21, further boosting the city’s growing roster of regulated digital asset products. Regulators push back on market hype The HKMA, which is in charge of the city’s stablecoin licensing framework, stressed that applying for a license or engaging with the authority was “just part of the licensing process” and should not be interpreted as an endorsement or guarantee of approval. “The approval thresholds set are high, and only a handful of licences will be granted initially,” said Eddie Yue, HKMA chief executive. “We have been in preliminary communication with dozens of parties regarding stablecoin licensing… [but] such communication is not an indicator of approval or endorsement of any entity’s prospects.” The SFC, which oversees Hong Kong’s securities markets, warned of “misleading prospects of gains from short-term price volatility” and the dangers of unsubstantiated claims, particularly on social media. Julia Leung, the SFC’s chief executive, added that her agency “will not hesitate in taking forceful and decisive actions to maintain market integrity and protect investors from undue risks.” Crypto ETFs gain momentum in Hong Kong The cautionary statement came just a…
The post Hong Kong’s HKMA and SFC warned investors against speculative hype around stablecoin licensing appeared on BitcoinEthereumNews.com.
Hong Kong’s top financial regulators have warned investors to exercise restraint amid a flurry of speculation surrounding stablecoin licensing and the expansion of cryptocurrency exchange-traded funds (ETFs) in the city. In a joint statement on Thursday, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) said they had observed “abrupt market movements” linked to the stablecoin sector in recent days. The volatility, they said, appeared to follow “corporate announcements, news reports, social media posts or speculation” about applications to become licensed stablecoin issuers in Hong Kong. The warning comes as two new spot cryptocurrency ETFs, the MicroBit Bitcoin spot ETF and MicroBit Ethereum spot ETF, prepare to list on the Hong Kong Stock Exchange on August 21, further boosting the city’s growing roster of regulated digital asset products. Regulators push back on market hype The HKMA, which is in charge of the city’s stablecoin licensing framework, stressed that applying for a license or engaging with the authority was “just part of the licensing process” and should not be interpreted as an endorsement or guarantee of approval. “The approval thresholds set are high, and only a handful of licences will be granted initially,” said Eddie Yue, HKMA chief executive. “We have been in preliminary communication with dozens of parties regarding stablecoin licensing… [but] such communication is not an indicator of approval or endorsement of any entity’s prospects.” The SFC, which oversees Hong Kong’s securities markets, warned of “misleading prospects of gains from short-term price volatility” and the dangers of unsubstantiated claims, particularly on social media. Julia Leung, the SFC’s chief executive, added that her agency “will not hesitate in taking forceful and decisive actions to maintain market integrity and protect investors from undue risks.” Crypto ETFs gain momentum in Hong Kong The cautionary statement came just a…
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