Unregulated Hong Kong Stablecoins Appear on the Market

The central banking authority of Hong Kong has alerted the public to the presence of fake stablecoins, which are masquerading as legitimate under the city's newly introduced stablecoin framework. According to the Hong Kong Monetary Authority, unauthorized tokens bearing the 'HKDAP' and 'HSBC' labels are in circulation, but are not affiliated with any licensed issuer. This development comes after the HKMA recently awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two applicants out of 36. Notably, the chosen groups include a Standard Chartered-led entity and another, reflecting the existing monetary system in Hong Kong where a select few commercial banks are authorized to issue banknotes. The HKMA has cautioned the public to be aware of potential scams, advising them to only rely on official communications from licensed issuers and to conduct transactions through regulated platforms. Industry insiders anticipate the launch of official stablecoins to coincide with Hong Kong's fintech week in November.