Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the territory's upcoming stablecoin framework, even before the introduction of a single authorized product. The Hong Kong Monetary Authority stated that tokens with the ‘HKDAP’ and ‘HSBC’ labels are being traded, but are not associated with any licensed issuer. Both applicants for stablecoin licenses referenced in media reports have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its first stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two groups out of 36 applicants. The choice of these groups mirrors the existing banking system in Hong Kong, where a limited number of banks are authorized to issue banknotes. The HKMA advised 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 licensed stablecoins during Hong Kong's fintech week in November.