Crypto Scams on the Rise in Hong Kong — SFC Blames Side Effects of Stablecoin Regulation

Jakarta, Pintu News – Regulators from Hong Kong’s Securities and Futures Commission (SFC) recently issued a warning to investors to be cautious in their transactions. This follows an increased risk of fraud following the introduction of the Stablecoin Regulation on August 1.

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New Rules, High Enthusiasm

According to reports from local media Zhitong Finance, the market response to the Stablecoin Regulation in Hong Kong has been enthusiastic. However, this enthusiasm also brings the negative impact of increased fraud risk.

The SFC along with the Hong Kong Monetary Authority have issued a joint statement indicating their concerns over market volatility associated with stablecoins.

They are calling on the public to be cautious in their dealings. In recent months, there has been a surge in the share prices of crypto-related companies.

For example, shares of Hong Kong-listed Chinese brokerage firm Guotai Junan jumped 16% ahead of the introduction of the new regulations. Although Guotai Junan has not explicitly expressed interest in stablecoin issuance, its position as a crypto company has attracted investor interest.

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Stock Market Surges and Declines

According to Crypto.news, on August 18, Ye Zhiheng, Executive Director of the Intermediaries Department at the Securities and Futures Commission, emphasized the importance of caution for investors. He observed that shares of companies that have expressed interest in applying for stablecoin issuer licenses have typically seen price increases.

However, this was also followed by a significant price drop after August 1, indicating high market volatility. OSL, the first crypto exchange licensed in Hong Kong, also experienced significant gains.

Its shares rose more than 12% in July after it was announced that the company would allocate a large portion of its $300 million fund to stablecoin development and global expansion.

However, after peaking at $1.20 on the ASX stock exchange, OSL’s share price also declined, reflecting the high market volatility.

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Warning from Regulators

Although the SFC did not mention the exact number of fraud complaints received post-Stablecoin Regulation, it revealed that the first half of this year has seen 265 complaints related to fraud and other digital asset crimes.

This number has been consistent over the past two years, indicating that 2025 may see an increase in the number of annual complaints. Regulators continue to urge the public not to get carried away by market euphoria and maintain a healthy level of rationality.

They emphasized the importance of conducting research and using sound judgment before investing in cryptocurrencies, especially stablecoins, which are now under the spotlight with the introduction of new regulations.

Conclusion

With the market’s growing enthusiasm for stablecoins, it’s important for investors to understand the risks involved. Foresight and caution are key in dealing with this volatile market. Regulators in Hong Kong will continue to monitor the situation and take the necessary steps to protect investors from potential fraud and other losses.

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Reference

• Crypto News. Hong Kong SFC Says Fraud Risks on the Rise After Stablecoin Law. Accessed on August 19, 2025
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