The Hong Kong SFC disclosed on December 16 that it has placed the Hong Kong Stablecoin Exchange on its list of suspicious virtual asset trading platforms. The regulator states the platform operator is suspected of unlicensed activities and virtual asset–related fraudulent activities. It also notes the operator falsely claimed a joint establishment with the Hong Kong Stock Exchange, the Hong Kong Futures Exchange, and HKEX, allegations the SFC says are unsubstantiated and misleading.

For investors and market participants, the episode underscores the need for rigorous due diligence and licensing verification before engaging with any digital-asset venue. The SFC warning highlights the risks associated with unregistered platforms and potential misrepresentation in the stablecoin space. Market participants should consult the regulator’s official license list and monitor ongoing actions as Hong Kong’s securities framework tightens to protect market integrity and investor welfare.