Hong Kong lawmaker "Warns of stablecoin investment scams… Government should promptly publish list of issuers"

A Hong Kong lawmaker warned of the possibility of stablecoin investment scams and urged the Hong Kong government to promptly publish a list of legitimate issuers to strengthen investor protection.

On the 30th, local Hong Kong media outlet on.cc reported that Wong Chun-shuo, a member of the Legislative Council and of the Stablecoin Bill Committee, issued a statement saying, "Stablecoins are digital assets originally pegged to fiat currency, and because practical use cases are still limited, they should not become instruments of speculation," adding, "Recently, excessive speculation and fraud related to stablecoins have occurred in the market."

Earlier in Hong Kong, it was reported that a citizen lost about 3 million Hong Kong dollars in the process of investing in stablecoins, raising the need for related regulation and investor protection.

Wong urged the government to "strengthen public outreach and investor education on digital assets and stablecoins to increase public understanding and, at the same time, raise vigilance." He also urged that "the financial authorities should, after strict review, promptly complete the licensing procedures for legally authorized stablecoin issuers and make the list public."

He added, "When investors invest in stablecoins or digital assets, they must do so through issuers or trading platforms licensed by the Hong Kong Monetary Authority (HKMA) or the Securities and Futures Commission (SFC)," noting that "investment and use must take place only within a legal regulatory framework to guarantee investor rights."