TLDR
- SFC warns of stablecoin hype as Guotai, OSL stocks swing on speculation.
- Hong Kong’s crypto law sparks rallies, fraud risks, and regulatory crackdowns.
- Speculation surges post-stablecoin law, SFC flags Guotai and OSL trading.
- Crypto-linked stocks jump, then dip, as SFC tightens stablecoin oversight.
- SFC targets stablecoin-driven market spikes; urges cautious crypto trading.
The Hong Kong Securities and Futures Commission (SFC) has raised red flags following increased trading activity around stablecoins. After the new Stablecoin Ordinance was enacted on August 1, market manipulation and fraudulent schemes have reportedly grown. Authorities now stress compliance while warning the public against irrational trading behavior.
Guotai Junan Rallies Then Retreats After Crypto Frenzy
Guotai Junan shares jumped by 16% in late July as market excitement around stablecoins peaked. Traders speculated on its crypto alignment despite no confirmed involvement in stablecoin issuance. However, by early August, the momentum faded and the stock price corrected.
The firm’s position as a Hong Kong-listed brokerage with crypto exposure likely drove interest. As the Ordinance took effect, speculative buying surged, highlighting the influence of hype. Yet without solid corporate declarations, those gains reversed quickly.
While Guotai Junan never stated stablecoin intentions, its crypto status attracted speculative flows. This pattern underscored the volatility driven by regulatory changes. Many firms benefited from the trend despite lacking direct involvement in stablecoins.
OSL Benefits from Regulatory Optimism but Faces Market Dip
OSL also saw stock gains ahead of the August 1 implementation. Traders acted on optimism that firms like OSL would thrive under Hong Kong’s regulated crypto framework. However, as requirements emerged, expectations cooled and shares retreated.
Market watchers noted that interest in OSL stemmed from its positioning within crypto infrastructure. This association prompted speculative gains similar to Guotai Junan’s rally. However, once the regulatory path proved stricter than expected, a market reset followed.
The sudden drop corrected inflated valuations. OSL’s price activity highlighted how mere association with stablecoins can influence performance. The SFC has now signaled that such speculative swings may carry fraud risks.
SFC Strengthens Oversight and Flags Speculative Behavior
The SFC and Hong Kong Monetary Authority issued a joint statement on August 18 targeting deceptive market practices. Authorities flagged trading spikes following announcements about potential stablecoin licenses. They confirmed heightened surveillance on digital asset trades and warned against manipulation.
Officials reported 265 fraud complaints in the first half of 2025 tied to digital assets. This figure aligns with previous years, but concerns have grown about potential increases. As stablecoin interest surges, regulators expect more misconduct unless disciplined trading prevails.
Ye Zhiheng of the SFC’s intermediaries division urged rational behavior amid license-related speculation. The new law criminalizes the promotion of unlicensed stablecoins to retail participants. Hong Kong aims to balance digital innovation with vigorous enforcement to protect its evolving crypto market.
