Hong Kong Regulator Warns of Elevated Fraud Risk Amidst Stablecoin Regulation

The Hong Kong Securities and Futures Commission (SFC) has issued a warning regarding increased fraud risks as the stablecoin regulation begins to take effect. Yeh Chi-hang, Executive Director of the Intermediaries Division at the SFC, expressed concern during an interview on ‘Clarify’ program regarding recent developments with the Stablecoin Ordinance. He pointed out that some companies have sought or intend to apply for licenses related to stablecoins, leading to increased stock prices and investor enthusiasm. However, Yeh emphasized the importance of maintaining a rational approach to investing.