Hong Kong SFC’s Yip Chi-hang: Some companies see their stock prices rise after announcing plans to apply for a stablecoin license, investors should be alert to increased fraud risks

According to a report by Jinse Finance, Ye Zhiheng, Executive Director of the Intermediaries Division of the Hong Kong Securities and Futures Commission (SFC), stated in an interview with the TV program "Speak Clearly" that since the recent implementation of the Stablecoin Ordinance, some companies have claimed to have applied for or intend to apply for licenses, resulting in a rise in their stock prices. He pointed out that investor enthusiasm is high and urged investors to remain rational, as the SFC is concerned about an increased risk of fraud. Ye Zhiheng revealed that in the first half of this year, there were 265 complaints related to virtual asset trading, mainly involving overseas investors making overseas investments, with reported financial losses. The causes included scams, platforms being hacked and assets stolen, platforms refusing to pay out winnings, or counterparties being accused of money laundering and funds being suddenly frozen. He emphasized that when investors trade virtual assets without using licensed platforms, they are essentially taking risks and "playing Russian roulette." Additionally, he mentioned that the SFC is still investigating the JPEX fraud case.