Un authorized Stablecoins Emerge in Hong Kong Amid Regulatory Vacuum

Hong Kong's financial regulator has sounded the alarm over fake stablecoins that are capitalizing on the city's new stablecoin framework, even before the launch of the first authorized products. The Hong Kong Monetary Authority revealed that tokens with the ‘HKDAP’ and ‘HSBC’ labels are being traded, although they are not linked to any approved issuer. This development comes after the HKMA recently awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two applicants out of 36. The regulator cautioned the public to be cautious of scams, advising them to only rely on official announcements from licensed entities and to conduct transactions through authorized platforms. Industry insiders anticipate the launch of legitimate stablecoins to coincide with Hong Kong's fintech week in November.