Hong Kong regulators issued a warning on August 14, 2025, against speculation related to stablecoin licensing activities following significant volatility in crypto-related stocks and digital assets. This warning highlights the regulatory challenges as markets react strongly to potential risks associated with stablecoin market activity. The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) emphasized a need for caution as companies engage in stablecoin ventures due to the risk of price fluctuations and investor uncertainty. The warning stems from the abrupt price swings witnessed in stocks linked to stablecoin development, such as IVD Medical Holding Ltd., which saw a dramatic 27.55% surge following news of Ethereum investment plans before experiencing a subsequent decline. The new regime for fiat-referenced stablecoins, with initial guidelines implemented on August 1, 2025, emphasizes the need for compliance and stringent penalties for unlicensed activities to ensure responsible market development. These actions reflect Hong Kong’s efforts to manage market speculation and foster the adoption of mature stablecoin solutions.