Unauthorized Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city's new stablecoin framework, even before the introduction of the first officially licensed product. The Hong Kong Monetary Authority stated that tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, but are not affiliated with any authorized issuer. The two licensed applicants mentioned in related news articles confirmed that they have not issued 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 groups out of 36 applicants. The regulator warned the public to be cautious of fraudulent activities, advising them to only rely on official communications from licensed issuers and to conduct transactions through authorized channels. According to insiders, the launch of licensed stablecoins is anticipated to take place during Hong Kong's fintech week in November.