Unregulated Hong Kong Stablecoins Emerge Amid Official Absence

Hong Kong's financial regulator has cautioned that fake stablecoins are taking advantage of the city's upcoming stablecoin framework, even before the introduction of a single authorized product. The Hong Kong Monetary Authority stated that tokens bearing the 'HKDAP' and 'HSBC' labels are being traded, but they are not affiliated with any approved issuer. The two licensed stablecoin applicants mentioned in related media reports confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA issued its first 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 is reminiscent of 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 and advised them to only rely on official communications from licensed issuers and to conduct transactions through regulated channels. According to insiders, the launch of official stablecoins is expected to take place during Hong Kong's fintech week in November.