Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulatory body has cautioned that fraudulent stablecoins are taking advantage of the city's new stablecoin regulations before any officially sanctioned products have been released. According to a statement from the Hong Kong Monetary Authority, tokens labeled 'HKDAP' and 'HSBC' are being traded, despite having no affiliation with authorized issuers. The two applicants for stablecoin licenses referenced in related media reports confirmed that they have not issued any regulated stablecoins. Earlier this month, the HKMA awarded its first stablecoin licenses under the Stablecoins Ordinance, which went into effect in August 2025, selecting two groups out of 36 applicants. The selection of HSBC and a Standard Chartered-led entity mirrors the existing monetary system in Hong Kong, where a limited number of commercial banks are authorized to issue banknotes. The HKMA 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 official stablecoins during Hong Kong's fintech week in November.