Hong Kong warns of increased fraud risk with new stablecoin regulations, as some companies see double-digit losses and others profit from license speculation. Authorities caution against unstable market movements and plan to monitor trading activities closely to prevent manipulation. The city enforces the Stablecoin Ordinance, criminalizing unlicensed stablecoin offerings to retail investors. The SFC issues guidance on cryptocurrency custody standards, banning smart contracts in cold wallet implementations.

Read more at Cointelegraph: Hong Kong SFC warns stablecoin rules heighten fraud risks