Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city's new stablecoin framework, even before the launch of the first officially licensed product. The Hong Kong Monetary Authority (HKMA) has stated that tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, but are not affiliated with any approved issuer. Both applicants for licensed stablecoins mentioned in related 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 came into effect in August 2025, selecting two groups out of 36 applicants. The selection of HSBC and a Standard Chartered-led entity reflects 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, advising them to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. Industry insiders anticipate the launch of licensed stablecoins during Hong Kong's fintech week in November.