Hong Kong Securities and Futures Commission: The risk of fraud increases after the stablecoin regulations come into effect, and investors need to remain rational

ChainCatcher news, according to Zhitong Finance, the "Stablecoin Regulation" in Hong Kong came into effect on August 1 and began accepting applications for stablecoin issuer licenses. Yip Chi-hang, Executive Director of the Intermediaries Division of the Hong Kong Securities and Futures Commission, stated that the market reacted enthusiastically after the regulation took effect, but the risk of fraud has also increased. He urged investors to remain rational and avoid making irrational investment decisions due to market speculation or price momentum.

Yip pointed out that recently, some companies saw their stock prices surge simply because they applied for or claimed to plan to apply for a stablecoin license. He reminded investors to maintain a "rational line." The Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority recently issued a joint statement expressing concern about market fluctuations related to stablecoins and urging the public to invest cautiously.