Hong Kong’s Securities and Futures Commission (SFC) has cautioned investors about growing risks of fraud and market volatility in the wake of the city’s newly implemented Stablecoin Ordinance. The law, which came into effect on August 1, establishes a regulatory framework for stablecoin issuers and has been met with strong market interest. But regulators say the enthusiasm has also attracted bad actors.
作者： 智通财经 陈筱亦
In a joint statement with the Hong Kong Monetary Authority, the SFC urged the public to remain vigilant, highlighting that fraud and other digital asset-related crimes remain a persistent issue. While no specific figures were provided for post-ordinance cases, data shows that in the first half of 2025 alone, authorities received 265 complaints linked to fraud and crypto-related misconduct—a trend that has held steady over the past two years. Officials now warn that this year’s total may surpass previous records.
Investor Caution Urged Amid Market Frenzy
Ye Zhiheng, Executive Director of the SFC’s Intermediaries Department, emphasized the need for rational decision-making. He noted that stocks of companies perceived to be entering the stablecoin sector often surge, even without formal announcements.
“Investors must exercise caution and avoid speculation driven solely by headlines,” Ye said on August 18.
That sentiment was underscored by recent market moves. Shares of Chinese brokerage firm Guotai Junan, listed in Hong Kong, climbed 16% in late July as speculation swirled about stablecoin opportunities. The rally ended abruptly in early August, coinciding with the ordinance’s rollout, sending the stock lower.
Similarly, Hong Kong’s first licensed crypto exchange, OSL, saw its stock jump more than 12% in July after revealing plans to channel part of its $300 million fundraising into stablecoins and overseas expansion. Its shares later peaked at HK$1.20 in early August on the ASX exchange before slipping back to HK$1.12 amid market turbulence. The firm’s market capitalization has since reached as high as HK$14.11 million.
Stablecoin Regulation Brings Both Optimism and Risk
The Stablecoin Ordinance is viewed as a landmark move in positioning Hong Kong as a global hub for digital assets. By offering clear licensing requirements, officials hope to encourage innovation while maintaining safeguards for investors. However, regulators caution that the law has also fueled speculative trading and heightened fraud risks, making vigilance more important than ever.
For now, Hong Kong’s crypto sector is enjoying a surge of attention, but the SFC’s message is clear: investors should balance enthusiasm with caution as the stablecoin era unfolds.
