SFC and HKMA Joint Statement on Stablecoin Market Movements

SFC HK Policy Statements

Published August 14th, 2025

Detected March 14th, 2026

Summary

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued a joint statement on August 14, 2025, addressing recent market movements related to stablecoins. The statement urges caution among investors and reminds market participants to communicate responsibly.

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What changed

The SFC and HKMA have issued a joint statement on August 14, 2025, to address recent market volatility and speculation surrounding stablecoins in Hong Kong. The statement clarifies that indications of interest or applications for stablecoin issuer licenses are part of a licensing process, and granting a license depends on meeting specific criteria. The regulators noted that market movements appear driven by excitement or speculation following corporate announcements or news reports, highlighting the need for vigilance.

Regulated entities and the public are urged to exercise caution, conduct thorough research, and avoid making irrational investment decisions based on market hype. Market participants are reminded to communicate responsibly and refrain from making misleading statements. The SFC's market surveillance team will closely monitor trading activities and take stringent actions against manipulative or deceptive practices to safeguard market integrity and protect investors.

What to do next

Review public communications for potential to mislead investors regarding stablecoin initiatives.
Ensure all statements regarding stablecoin licensing or exploration are accurate and do not create unrealistic expectations.
Reinforce internal compliance procedures for investor communications and market conduct.

Penalties

The SFC will take stringent actions against any manipulative or deceptive practices that could compromise market integrity.

Source document (simplified)

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Joint statement by the SFC and the HKMA on stablecoin-related market movements Joint statement by the SFC and the HKMA on stablecoin-related market movements The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) today issued (14 August 2025) the following joint statement on recent market movements in relation to stablecoins.

The SFC and the HKMA have noted recent abrupt market movements linked to the stablecoin concept. These movements appear to follow corporate announcements, news reports, social media posts or speculations regarding plans to apply for stablecoin issuer licence, engage in related activities or explore the feasibility of such initiatives in Hong Kong. Some of these claims have also mentioned recent engagements with financial regulatory authorities in Hong Kong.

The HKMA reiterates that it adopts a robust and prudent approach, with a reasonably high bar, in considering applications for stablecoin issuer licence. The HKMA emphasises that an indication of interest or application for a stablecoin licence, and the HKMA’s communication with the interested entities are just part of the licensing process. The granting of licence will be determined by the fulfilment of the licensing criteria.

Given the significant uncertainties surrounding the outcomes of these preliminary plans or applications, the abrupt market movements noted above, often driven by excitement or speculation, highlight the need to stay vigilant in these frenetic situations. This heightened volatility in share prices can lead to irrational decisions, thereby exposing investors to undue risks.

In the light of this phenomenon, the SFC and the HKMA urge the public to exercise caution, conduct thorough research, and refrain from making irrational investment decisions based solely on market hype or price momentum. They should remember well-considered and informed decision-making is essential to mitigate risks in times of heightened volatility.

Market participants are reminded to exercise responsibility in public communications, and refrain from making statements that could mislead investors or create unrealistic expectations.

To safeguard market integrity and protect investors, the SFC’s dedicated market surveillance team, equipped with advanced and proven systems, will closely monitor trading activities in Hong Kong. It will take stringent actions against any manipulative or deceptive practices that could compromise the integrity of the market.

Ms Julia Leung, Chief Executive Officer of the SFC, said, “Recent share price movements associated with the stablecoin concept underscore the importance for investors to be clear-minded about the risks involved and the potential financial losses from making relevant investments. In addition to conducting thorough research themselves, they should always be mindful of the misleading prospects of gains from short-term price volatility and be wary of unsubstantiated claims, particularly those appearing on social media. The SFC will continue to monitor market activities closely and will not hesitate in taking forceful and decisive actions to maintain market integrity and protect investors from undue risks.”

Mr Eddie Yue, Chief Executive of the HKMA, said, “The HKMA adopts a rigorous and prudent approach in assessing applications for stablecoin issuer licence. The approval thresholds set are high, and only a handful of licences will be granted initially. We have been in preliminary communication with dozens of parties regarding stablecoin licensing as part of our market engagement. Such communication, or the related indication of interest or application, is not an indicator of approval or endorsement of any entity's prospects.”

End

Last update: 14 Aug 2025