"Stablecoins" have not really landed, and the market has already "heated" first.

Recently, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) issued a joint statement on the recent market volatility related to stablecoins.

The statement calls on the public to remain cautious about recent market volatility related to stablecoins and avoid making irrational investment decisions based solely on market hype or price momentum.

What does the regulation say?

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) spoke out in a rare joint voice, gently pouring "calming water" on this craze. Summary in one sentence: "Don't be fooled by the word 'stablecoin', let alone rush in to follow the hype because of a few news and rumors." "It sounds mild, but the meaning is clear, the market is a little overheated, be careful not to step on the pit.

What happened? You may have seen this kind of news recently: "A company is about to apply for a Hong Kong stablecoin license!" "A certain platform has been in contact with the regulator and is progressing smoothly!" "Local compliant stablecoins are coming, get on the bus!"

As soon as these news came out, the prices of related stocks and tokens immediately jumped, and social media was full of stories of "countdown to wealth and freedom". But here comes the problem - many of these claims are not officially confirmed.

The statements of the HKMA and the SFC directly pointed out: We note that the recent market volatility is largely driven by some unconfirmed announcements, social media posts, and market speculation; Some companies say "we have talked to the regulator", but this does not mean that they are applying for a license, let alone that they will be approved.

Not a reminder, but a clear line

The regulatory attitude is very clear: it is better to have a lack than to abuse. The Hong Kong Monetary Authority (HKMA) has recently reiterated that it will adopt a prudent and prudent approach when approving stablecoin issuer licenses, and set a high entry threshold.

What do you mean?

It's not just someone who says, "I want to issue stablecoins," and they can do it. A series of criteria must be met, including strict capital requirements, risk management, asset custody, and compliance mechanisms. The more critical sentence is: "You communicate, you submit an application, just the beginning of the process." Whether you can get a license depends only on the conditions, not the popularity. In other words: if the market speculates and the stock price rises again, as long as it does not meet the conditions, none of them will be issued.

Why is this emphasized now? Because the regulator has seen signs of risk: some companies use the name of "applying for a license" to hype the truth. Stock prices are driven higher by sentiment and speculation, completely out of the fundamentals.

Investors rushed in in droves, hoping to "catch the compliance express" and get rich overnight. However, the HKMA and the SFC warned: "There is significant uncertainty about whether these plans will succeed. The current volatility is "market frenzy", not "value discovery". The stock price fluctuates violently, making it easy for people to make irrational decisions, chasing the rise at a high level, cutting meat at a low level, and in the end, it is ordinary investors who are injured.

Stablecoin hype "cools down"

The statement noted that market participants should act responsibly when communicating with the public and avoid making statements that could mislead investors or create unrealistic expectations.

The SFC emphasizes that in order to maintain market integrity and protect investors, the SFC has a dedicated market surveillance team and advanced and proven systems to closely monitor trading activities in Hong Kong. The SFC will take strict action against any manipulation or fraud that may undermine the integrity and integrity of the market.

This statement is more informative and resolute. Let's look at it at two ends:

Tell the institution: Don't rub the heat, don't draw a big pie

The regulation clearly states that market participants must act responsibly when communicating with the outside world and must not make statements that may mislead investors or create "unrealistic expectations". Behind this is the regulator's vigilance against "expected arbitrage" - some people do not intend to do business in a down-to-earth manner, but want to use "license expectations" to speculate and leave.

Tell investors: Don't be fooled by "short-term profiteering"

Leung Fengyi, CEO of the Hong Kong Securities and Futures Commission, put it very bluntly: "The recent sharp fluctuations in stablecoin-related stock prices have exposed investors' lack of risk awareness. ”

She reminded everyone to be clearly aware of the financial losses that such investments may bring; Don't be attracted by the "short-term surge", it may be a "return illusion"; maintain a high degree of vigilance against "inside information" and "exclusive progress" on social media; The China Securities Regulatory Commission has a special monitoring team and system to keep an eye on abnormal market transactions; Once manipulation and fraud are discovered, they will take decisive action and will never be lenient.