Unregulated Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

The central banking authority of Hong Kong has cautioned that fraudulent tokens are taking advantage of the city's upcoming stablecoin framework, even before the introduction of a single licensed stablecoin. According to a statement from the Hong Kong Monetary Authority, tokens labeled as ‘HKDAP’ and ‘HSBC’ are being traded, despite having no affiliation with any authorized issuer. The two licensed stablecoin applicants mentioned in related press releases have confirmed that they have not issued any regulated stablecoins. The HKMA recently granted its first stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two groups out of 36 applicants. The selection of HSBC and a Standard Chartered-led entity is reminiscent of Hong Kong's existing monetary system, in which a small group of commercial banks is authorized to issue banknotes. The HKMA has warned the public to be cautious of fraudulent activities, advising users to only rely on official communications from licensees and to conduct transactions through regulated channels. Industry insiders anticipate that the launch will take place during Hong Kong's fintech week in November.