Hong Kong's Stablecoin Ordinance took effect on August 1, beginning to accept license applications from stablecoin issuers. Vincent Yip, Executive Director of the Intermediaries Division at the Securities and Futures Commission (SFC), stated that while market response has been enthusiastic following the ordinance's implementation, accompanying fraud risks have increased. He called on investors to remain rational and avoid making irrational investment decisions based on market speculation or price momentum.

Yip noted that recently, some companies have experienced sharp stock price increases merely from applying for or claiming to plan applications for stablecoin licenses. He reminded investors to maintain their "rational line."

The Hong Kong SFC and Hong Kong Monetary Authority recently issued a joint statement expressing concerns about stablecoin-related market volatility and urging public caution in investment decisions.

Yip indicated that virtual asset trading complaints have not shown an upward trend in recent years, with 265 cases recorded in the first half of this year, consistent with levels from the past one to two years. These complaints primarily involve overseas investors making overseas investments, with few cases related to Hong Kong investors.

Complaint issues include fraud, asset theft due to platform breaches, platforms refusing to honor profits for withdrawal, and fund freezing due to counterparty suspected money laundering activities. Since many complaints involve situations where effective resolution channels cannot be found, some victims approach the Hong Kong SFC to "try their luck" for assistance.

Yip emphasized that using unlicensed or non-Hong Kong regulated virtual asset trading platforms is like playing "Russian roulette" with extremely high risks, stating "just because nothing happens 100 times doesn't mean nothing will happen the 101st time."