- Following the August 1 Stablecoin Ordinance, Hong Kong’s SFC and HKMA issue a warning about an increase in fraud risks.
- In H1 2025, regulators received 265 complaints about fraud and cryptocurrency crime; these figures are expected to increase.
- The euphoria for stablecoins caused cryptocurrency-related stocks, such as Guotai Junan and OSL, to soar, although they are still erratic.
Given that the Stablecoin Ordinance went into effect on August 1, Hong Kong’s Securities and Futures Commission (SFC) has cautioned investors to be especially cautious because trading risks and fraud are increasing.
Zhitong Finance, a local media site, reported that regulators observed that although the market’s response to the new regulation has been “enthusiastic,” it has also been accompanied by an increase in fraudulent activity. In a joint statement, the SFC and the Hong Kong Monetary Authority (HKMA) warned the public about the volatility of the stablecoin market and urged investors to exercise caution.
Also read: Dutch crypto firm Amdax aims to launch Bitcoin treasury company on Euronext
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Stablecoin law sparks market excitement
As anticipation grew for the Stablecoin Ordinance, cryptocurrency-related stocks surged. Guotai Junan, a brokerage listed in Hong Kong, had a 16% increase from late July to early August before declining once the law went into effect. It is interesting to note that the corporation has never officially announced plans to issue stablecoins, but its affiliation with cryptocurrency was sufficient to support gains based on speculation.
In a similar vein, OSL, the first regulated cryptocurrency exchange in Hong Kong, saw a gain of over 12% in July after revealing that stablecoins and international expansion would receive a portion of its $300 million financing. Before volatility drove shares back down to $1.12, the exchange’s market capitalization peaked at $14.11 million, and its stock price on the ASX reached $1.20.
The stock performances of OSL (ASX) and Guotai Junan (HKEX) differed from late July to mid-August 2025. OSL experienced a significant increase, reaching a high in the middle of August before leveling out. Guotai Junan, on the other hand, saw a sharp drop following a brief peak in late July, concluding the period with a net loss.
