Hong Kong regulator warns of scams after stablecoin law

• SFC warns of fraud risks linked to stablecoins
• Crypto stocks show high volatility in Hong Kong
• 265 cryptocurrency fraud complaints already registered in 2025

Hong Kong's Securities and Futures Commission (SFC) issued a warning highlighting that fraud risks in the sector have increased following the implementation of the new Stablecoin Ordinance. According to the institution, the market reaction has been "enthusiastic," but the move has also brought increased volatility and opportunities for fraudulent schemes.

Em release Together with the Hong Kong Monetary Authority, regulators urged investors to be cautious about the growth in stablecoin activity. The warning came with data revealing 265 complaints related to fraud and crimes involving digital assets in the first half of this year alone, a number that could surpass the annual total for the last two years.

Ye Zhiheng, executive director of the SFC's Intermediaries Department, reinforced the need for investors to remain rational when faced with rising stock prices of companies associated with the sector. According to him, companies that merely express interest in applying for a stablecoin issuance license often experience sharp fluctuations in their shares.

This movement was evident in Hong Kong-listed companies. Brokerage Guotai Junan registered a high of 16% between late July and early August, before falling shortly after the Stablecoin Ordinance came into effect. Although it has not officially declared its intention to launch stablecoins, its connection to the crypto sector attracted speculative investors.

Another example was OSL, Hong Kong's first licensed exchange, which announced plans to allocate part of its $300 million fundraising to stablecoins and international expansion. The company's shares appreciated more than 12% in July, reaching $1,20 in early August. However, volatility quickly pushed the price down to $1,12, even after OSL's market cap reached $14,11 million.

The SFC reinforced that the enthusiasm surrounding stablecoins needs to be accompanied by increased vigilance, as the sector's growth could attract illicit activities. For regulators, protecting investors and preserving market integrity remains a top priority following the law's approval.