Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fraudulent tokens are taking advantage of the forthcoming stablecoin framework, even before the introduction of a single authorized product. The Hong Kong Monetary Authority stated that tokens labeled ‘HKDAP’ and ‘HSBC’ are being traded, despite having no affiliation with any licensed issuer. Both applicants for stablecoin licenses referenced in related media releases confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, effective August 2025, selecting two groups from 36 applicants. The selection of HSBC and a Standard Chartered-led entity mirrors the existing monetary framework in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA advised the public to be cautious of deceitful activities, recommending that users rely solely on official communications from licensed issuers and conduct transactions through regulated channels. Industry insiders anticipate an official launch during Hong Kong's fintech week in November.