Hong Kong Regulators Warn of Rising Fraud Risks Post-Stablecoin Law Implementation

Hong Kong's Securities and Futures Commission (SFC) has issued a stark warning to investors as fraudulent activities and trading risks escalate following the enactment of the Stablecoin Ordinance on August 1. Market enthusiasm for the new regulatory framework has been met with increased volatility and criminal activity.

Crypto-related stocks such as Guotai Junan and OSL saw significant gains ahead of the ordinance's implementation. However, the SFC and Hong Kong Monetary Authority's joint statement highlights growing concerns about stablecoin-related fraud, urging extreme caution among market participants.

While specific complaint numbers post-implementation remain undisclosed, authorities revealed 265 digital asset-related fraud cases in the first half of 2024 alone. This consistent trend over two years suggests 2025 may break annual complaint records.