Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fraudulent stablecoins are taking advantage of the city's new stablecoin framework, even before the launch of the first officially sanctioned products. The Hong Kong Monetary Authority stated that tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, but are not linked to any authorized issuers. The two applicants for stablecoin licenses referenced in the media 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 came 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 banking 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 scams, 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.