Unofficial Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city's upcoming stablecoin framework, even before the launch of the first authorized product. The Hong Kong Monetary Authority (HKMA) has stated that tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, but are not linked to any approved issuer. Both applicants for stablecoin licenses mentioned in related media reports have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025, selecting two applicants from a total of 36. The selection of HSBC and a consortium led by Standard Chartered mirrors Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue banknotes. The HKMA has warned the public to be cautious of fraudulent activities and to only rely on official communications from licensed issuers, as well as to conduct transactions through regulated channels. Industry insiders anticipate the launch of legitimate stablecoins during Hong Kong's fintech week in November.