Unlicensed Stablecoins Emerge in Hong Kong Amid Regulatory Vacuum

Hong Kong's financial regulator has cautioned that deceptive digital tokens are capitalizing on the impending stablecoin framework, even before the introduction of the first authorized product. The Hong Kong Monetary Authority (HKMA) revealed that tokens labeled 'HKDAP' and 'HSBC' are being traded, but are not affiliated with any licensed issuer. This development comes after the HKMA granted its inaugural stablecoin licenses under the newly enacted Stablecoins Ordinance, which became effective in August 2025, selecting two groups out of 36 applicants. The chosen entities, which include a consortium led by Standard Chartered and another involving HSBC, reflect Hong Kong's existing banking system, where a limited number of commercial banks are authorized to issue currency notes. The HKMA has warned the public to be cautious of fraudulent schemes, advising them to rely solely on official communications from licensed issuers and to conduct transactions through regulated platforms. Industry insiders anticipate the launch of legitimate stablecoins during Hong Kong's fintech week in November.