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Hong Kong SFC Warns of Stablecoin Fraud Risks Amid Market Speculation
Hong Kong SFC Warns of Stablecoin Fraud Risks Amid Market Speculation
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BTCCSquare news:
Hong Kong's Securities and Futures Commission (SFC) has issued warnings about escalating fraud risks tied to stablecoins following the enactment of the Stablecoin Ordinance on August 1. Market manipulation and speculative trading have surged, particularly around crypto-linked stocks like Guotai Junan, which saw a 16% rally in late July before retreating.
The SFC emphasized compliance and cautioned against irrational trading behavior as hype-driven volatility grips the market. Guotai Junan, despite having no confirmed stablecoin involvement, became a focal point for speculation due to its perceived crypto exposure. Regulatory scrutiny is intensifying as authorities seek to curb unstable price movements fueled by unsubstantiated rumors.
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