Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that bogus stablecoins are taking advantage of the city's upcoming stablecoin framework, even before the launch of the first officially sanctioned product. The Hong Kong Monetary Authority (HKMA) revealed that tokens bearing the ‘HKDAP’ and ‘HSBC’ tickers are being traded, but are not affiliated with any authorized issuer. The two licensed stablecoin applicants referenced in the press have confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective 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 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 to occur during Hong Kong's fintech week in November.