Joint Statement by the HKMA and the SFC on Stablecoin-related Market Movements

On August 14, 2025, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) issued a joint statement addressing recent volatile market movements related to stablecoins. These fluctuations have been linked to corporate announcements and social media speculations about plans to apply for stablecoin issuer licenses in Hong Kong. The HKMA emphasized its rigorous approach to licensing, stating that interest or applications are only part of the process, and that meeting high criteria is essential for approval. Both authorities cautioned the public against making hasty investment decisions driven by market hype, highlighting the risks of volatility and the potential for irrational behavior among investors. They urged thorough research and responsible communication from market participants to avoid misleading claims. The SFC’s market surveillance team is set to monitor trading activities closely and will take action against any manipulative practices. Mr. Eddie Yue of the HKMA and Ms. Julia Leung of the SFC reinforced the importance of informed decision-making and the need for investor awareness regarding potential financial risks associated with such investments. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/08/20250814-8/