Unauthorized Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that fake stablecoins are capitalizing on the impending introduction of regulated stablecoins in the city, even before the launch of a single authorized product. The Hong Kong Monetary Authority (HKMA) revealed that tokens labeled 'HKDAP' and 'HSBC' are being traded, but are not associated with any licensed issuer. This development comes after the HKMA recently awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two applicants from a pool of 36. The choice of these licensees reflects Hong Kong's existing banking system, where a select group of banks is authorized to issue currency. The HKMA has warned the public to be cautious of fraudulent activities and advised them to only rely on official communications from licensed issuers and use regulated channels for transactions. Industry insiders anticipate the launch of authorized stablecoins to coincide with Hong Kong's fintech week in November.