Hong Kong Securities and Futures Commission: Fraud risks increase after stablecoin regulations take effect, urges investors to remain rational.

The Hong Kong "Stablecoin Regulation" came into effect on August 1st, starting to accept stablecoin issuers license applications. Leung Chi-hang, Executive Director of the Intermediaries Division of the Securities and Futures Commission of Hong Kong, said that the market reaction has been heated after the regulation came into effect, but the accompanying risks of fraud have increased. He urged investors to remain rational and avoid making irrational investment decisions due to market speculation or momentum. He pointed out that recently, some companies' stock prices have surged sharply simply because they applied for or claimed to plan to apply for stablecoin licenses. He reminded investors to maintain a "line of reason." The Securities and Futures Commission of Hong Kong 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. Leung Chi-hang stated that virtual asset trading complaints in recent years have not increased, recording 265 cases in the first half of this year, which is consistent with the past one or two years. The complaints mainly involve overseas investments by overseas investors, with few related to Hong Kong investors. Complaint issues include fraud, platform hacking leading to asset theft, platforms refusing to cash out profits, and trading partners suspected of money laundering causing funds to be frozen. As complaints often involve seeking ineffective resolution channels, some victims seek help from the Securities and Futures Commission of Hong Kong as a last resort. He emphasized that using unlicensed or non-Hong Kong-regulated virtual asset trading platforms is like playing "Russian roulette," with extremely high risks. "Surviving 100 times does not guarantee safety on the 101st time."