Core Viewpoint - The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have issued a joint statement urging the public to exercise caution and conduct thorough analysis regarding recent market volatility related to stablecoins, emphasizing the importance of making informed investment decisions in a fluctuating environment [1][2][3] Group 1 - The HKMA and SFC noted that recent market fluctuations appear to be driven by announcements and speculations regarding stablecoin issuer license applications in Hong Kong [1][2] - The HKMA reiterated that it will adopt a prudent approach when considering stablecoin issuer license applications, setting high standards for approval [1][2] - The SFC has a dedicated market surveillance team and advanced systems in place to monitor trading activities in Hong Kong, ready to take strict action against any market manipulation or fraudulent behavior [2] Group 2 - The SFC's CEO highlighted the necessity for investors to understand the risks associated with investments in stablecoins and to remain vigilant against the allure of short-term price fluctuations [3] - The HKMA has engaged in preliminary discussions with multiple institutions regarding stablecoin licenses, but these communications do not imply any approval or endorsement of the license applications [2] - The joint statement emphasizes the need for responsible public communication from market participants to avoid misleading investors or creating unrealistic expectations [2]