Hong Kong regulator warns of scams after stablecoin law
- SFC warns of fraud risks linked to stablecoins
- Crypto stocks show high volatility in Hong Kong
- 265 cryptocurrency fraud complaints already registered in 2025
Hong Kong's Securities and Futures Commission (SFC) issued a warning highlighting that fraud risks in the sector have increased following the implementation of the new Stablecoin Ordinance. According to the institution, the market reaction has been "enthusiastic," but the move has also brought increased volatility and opportunities for fraudulent schemes.
Em release Together with the Hong Kong Monetary Authority, regulators urged investors to be cautious about the growth in stablecoin activity. The warning came with data revealing 265 complaints related to fraud and crimes involving digital assets in the first half of this year alone, a number that could surpass the annual total for the last two years.
Ye Zhiheng, executive director of the SFC's Intermediaries Department, reinforced the need for investors to remain rational when faced with rising stock prices of companies associated with the sector. According to him, companies that merely express interest in applying for a stablecoin issuance license often experience sharp fluctuations in their shares.
This movement was evident in Hong Kong-listed companies. Brokerage Guotai Junan registered a high of 16% between late July and early August, before falling shortly after the Stablecoin Ordinance came into effect. Although it has not officially declared its intention to launch stablecoins, its connection to the crypto sector attracted speculative investors.
Another example was OSL, Hong Kong's first licensed exchange, which announced plans to allocate part of its $300 million fundraising to stablecoins and international expansion. The company's shares appreciated more than 12% in July, reaching $1,20 in early August. However, volatility quickly pushed the price down to $1,12, even after OSL's market cap reached $14,11 million.
The SFC reinforced that the enthusiasm surrounding stablecoins needs to be accompanied by increased vigilance, as the sector's growth could attract illicit activities. For regulators, protecting investors and preserving market integrity remains a top priority following the law's approval.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ripple-Supported Evernorth Now Possesses a Whopping 261 Million XRP
Securing Massive XRP Treasury Ahead of Nasdaq Public Listing through Armada Acquisition Corp II Merger

Bitcoin and ETH ETFs Lose Ground as Investors Pivot Back to Bitcoin: Is Altseason Over?
Shifting Market Preferences: Over $128 Million Withdrawn from ETH ETFs as Bitcoin Futures Activity Soars to Record Highs

Stablecoin Revolution: When Payments Are No Longer Tied to Banks, How High Is the FinTech Startup Ceiling?
The Federal Reserve is not only exploring stablecoins and AI payments, but also piloting a new proposal called "streamlined master accounts," which would allow qualified companies to directly access the Fed's settlement system. This move could open new doors for fintech innovation.

A $2 billion "game of probabilities": Is the prediction market approaching its "singularity" moment?
The prediction market is evolving from a marginalized "crypto toy" into a serious financial instrument.

