Hong Kong stablecoin stocks slump after PBOC vows cryptocurrency crackdown

Hong Kong-listed stocks with businesses related to stablecoins tumbled on Monday, after China's central bank vowed to crack down on virtual currencies and flagged stablecoin concerns.

Yunfeng Financial Group (0376) slumped nearly 10 percent, Bright Smart Securities and Commodities Group (1428) dropped roughly 7 percent and OSL Group (0863) lost more than 4 percent.

The People's Bank of China reaffirmed its tough stance on virtual currencies on Saturday, warning of a resurgence in speculation and vowing to crack down on illegal activities involving stablecoins

The PBOC specifically highlighted concerns about stablecoins, saying they fail to meet requirements for customer identification and anti-money-laundering controls.

REUTERS