Unregulated Hong Kong Stablecoins Emerge Despite Official Absence

The central banking authority of Hong Kong has cautioned that deceptive digital tokens are taking advantage of the impending stablecoin framework in the city, even before the introduction of a single authorized product. The Hong Kong Monetary Authority stated that tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, but they are not affiliated with any licensed issuer. Both applicants for stablecoin licenses, mentioned in related media releases, confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its first stablecoin licenses under the Stablecoins Ordinance, effective August 2025, selecting two groups out of 36 applicants. This decision mirrors the existing monetary system in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA advised the public to be cautious of fraudulent activities, recommending that users rely solely on official communications from licensed entities and conduct transactions through regulated channels. According to insiders, a launch is anticipated during Hong Kong's fintech week in November.