Hong Kong SFC says fraud risks on the rise after stablecoin law
The post Hong Kong SFC says fraud risks on the rise after stablecoin law appeared on BitcoinEthereumNews.com.
Hong Kong SFC regulators have issued a statement, warning investors to exercise caution as trading risks and fraud are on the rise following the implementation of Stablecoin Ordinance on August 1. Summary Hong Kong SFC regulators warn investors to stay vigilant as market volatility and fraud cases increase following the implementation of new stablecoin laws. Crypto-related stocks like Guotai Junan and OSL have enjoyed significant boosts in the lead-up to Stablecoin Ordinance. According to a report by local media Zhitong Finance, Hong Kong SFC regulators have observes that market reaction towards Stablecoin Ordinance has been “enthusiastic” as of late. However, this also means that there is an increase in fraud risk following the law’s implementation. As a result, the SFC and the Hong Kong Monetary Authority recently issued a joint statement expressing concern about market volatility related to stablecoins and urging the public to tread with caution. Although the agencies did not mention the exact number of fraud complaints received post-Stablecoin Ordinance, it was revealed that the first half of the year has seen 265 complaints related to fraud and other digital asset-related crimes. This has remained consistent for the past two years, hinting that 2025 may see the fraud complaints exceeding the annual number of complaints. On August 18, Executive Director of the region’s Intermediaries Department of the Securities and Futures Commission, Ye Zhiheng, urged investors to remain cautious and maintain a healthy level of rationality. He observed that stocks of companies that express interest in applying for a stablecoin issuer license would usually see an increase in their stock prices. Hong Kong SFC spikes interest in stablecoins In the past month, crypto-related stocks have surged in the lead up to the implementation of Hong Kong Stablecoin Ordinance. For instance, this trend is evident in Hong Kong-listed Chinese brokerage…
