Joint statement by HKMA and SFC on stablecoin-related market movements
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) today issued (Aug 14) the following joint statement on recent market movements in relation to stablecoins.
The HKMA and the SFC have noted recent abrupt market movements linked to the stablecoin concept. These movements appear to follow corporate announcements, news reports, social media posts or speculations regarding plans to apply for stablecoin issuer licence, engage in related activities or explore the feasibility of such initiatives in Hong Kong. Some of these claims have also mentioned recent engagements with financial regulatory authorities in Hong Kong.
The HKMA reiterates that it adopts a robust and prudent approach, with a reasonably high bar, in considering applications for stablecoin issuer licence. The HKMA emphasises that an indication of interest or application for a stablecoin licence, and the HKMA's communication with the interested entities are just part of the licensing process. The granting of licence will be determined by the fulfilment of the licensing criteria.
Given the significant uncertainties surrounding the outcomes of these preliminary plans or applications, the abrupt market movements noted above, often driven by excitement or speculation, highlight the need to stay vigilant in these frenetic situations. This heightened volatility in share prices can lead to irrational decisions, thereby exposing investors to undue risks.
In the light of this phenomenon, the HKMA and the SFC urge the public to exercise caution, conduct thorough research, and refrain from making irrational investment decisions based solely on market hype or price momentum. They should remember well-considered and informed decision-making is essential to mitigate risks in times of heightened volatility.
Market participants are reminded to exercise responsibility in public communications, and refrain from making statements that could mislead investors or create unrealistic expectations.
To safeguard market integrity and protect investors, the SFC's dedicated market surveillance team, equipped with advanced and proven systems, will closely monitor trading activities in Hong Kong. It will take stringent actions against any manipulative or deceptive practices that could compromise the integrity of the market.
The Chief Executive of the HKMA, Mr Eddie Yue,said, "The HKMA adopts a rigorous and prudent approach in assessing applications for stablecoin issuer licence. The approval thresholds set are high, and only a handful of licences will be granted initially. We have been in preliminary communication with dozens of parties regarding stablecoin licensing as part of our market engagement. Such communication, or the related indication of interest or application, is not an indicator of approval or endorsement of any entity's prospects."
The Chief Executive Officer of the SFC, Ms Julia Leung,said, "Recent share price movements associated with the stablecoin concept underscore the importance for investors to be clear-minded about the risks involved and the potential financial losses from making relevant investments. In addition to conducting thorough research themselves, they should always be mindful of the misleading prospects of gains from short-term price volatility and be wary of unsubstantiated claims, particularly those appearing on social media. The SFC will continue to monitor market activities closely and will not hesitate in taking forceful and decisive actions to maintain market integrity and protect investors from undue risks."
Source: AI-found images
Seven persons arrested during anti-illegal worker operation
The Immigration Department (ImmD) mounted an anti-illegal worker operation codenamed "Contribute" today (January 15).During the operation, ImmD Task Force officers raided premises under renovation in a newly built public housing estate in Sheung Shui district.A total of six suspected illegal workers and one suspected employer were arrested. Thearrested suspected illegal workers comprise six men, aged 22 to 41. Furthermore, one man, aged 45, suspected of employing the illegal workers, was also arrested. An investigation into the suspected employers is ongoing, and the possibility of further arrests is not ruled out.
Apart from mounting the enforcement operation, ImmD officers and a promotional vehicle have been deployed to distribute "Don't Employ Illegal Workers" leaflets and convey the message in the estate.
An ImmD spokesman said, "Any person who contravenes a condition of stay in force in respect of him or her shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years' imprisonment. Aiders and abettors are also liable to prosecution and penalties."
The spokesman stressed that it is a serious offence to employ people who are not lawfully employable. Under the Immigration Ordinance, the maximum penalty for an employer employing a person who is not lawfully employable, i.e. an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land, has been significantly increased from a fine of $350,000 and three years' imprisonment to a fine of $500,000 and 10 years' imprisonment to reflect the gravity of such offences. The director, manager, secretary, partner, etc, of the company concerned may also bear criminal liability. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence.
According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee's identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker's valid travel document if the job seeker does not have a Hong Kong permanent identity card. Offenders are liable upon conviction to a maximum fine of $150,000 and to imprisonment for one year. In that connection, the spokesman would like to remind all employers not to defy the law by employing illegal workers. The ImmD will continue to take resolute enforcement action to combat such offences.
Under the existing mechanism, the ImmD will, as a standard procedure, conduct an initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) and/or forced labour victims. When any TIP and/or forced labour indicator is revealed in the initial screening, the ImmD officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP and/or forced labour elements. Identified TIP and/or forced labour victims will be provided with various forms of support and assistance, including urgent intervention, medical services, counselling, shelter or temporary accommodation and other supporting services. The ImmD calls on TIP and/or forced labour victims to report crimes to the relevant departments immediately.
For reporting illegal employment activities, please call the dedicated hotline 3861 5000, by fax at 2824 1166, email to anti_crime@immd.gov.hk, or submit "Online Reporting of Immigration Offences" form at www.immd.gov.hk.
Seven persons arrested during anti-illegal worker operation Source: HKSAR Government Press Releases
Seven persons arrested during anti-illegal worker operation Source: HKSAR Government Press Releases
