Hong Kong Securities Supervision Commission and HKMA issue joint statement on stablecoin-related market volatility

The Hong Kong Securities Supervision Commission and the HKMA have noted the recent market volatility related to the concept of stablecoins. The HKMA reiterates that it will adopt a prudent and prudent approach and set a high threshold when considering applications for stablecoin issuer licenses.
The HKMA stressed that the expression of interest or submission of applications for stablecoin licences, as well as the communication between the HKMA and relevant institutions, are only the process of applying for a licence, and the eventual issuance of a licence will depend on whether the application meets the licensing conditions. Given the significant uncertainties in these plans or the outcome of applications, the above-mentioned volatility driven by market sentiment or speculation highlights the need to be vigilant in times of market frenzy. Violent fluctuations in stock prices can lead to irrational decisions, exposing investors to unnecessary risks.
In view of this, the Hong Kong Securities Supervision Commission and the HKMA call on the public to exercise caution and analyze relevant information in depth to avoid making irrational investment decisions based solely on market speculation or price momentum. The public should bear in mind that making well-considered and informed decisions in a volatile environment is essential to reducing risk.