Unauthorized Hong Kong Stablecoins Emerge Amid Regulatory Vacuum

Hong Kong's financial regulator has sounded the alarm over fake stablecoins that are taking advantage of the territory's new stablecoin framework, even before the launch of the first officially licensed products. The Hong Kong Monetary Authority (HKMA) has revealed that tokens with the ‘HKDAP’ and ‘HSBC’ tickers are circulating, but are not linked to any authorized issuers. The two applicants for stablecoin licenses referenced in the press have confirmed that they have not issued any regulated stablecoins. The HKMA recently granted its first stablecoin licenses under the Stablecoins Ordinance, which came into effect in August 2025, selecting two groups from 36 applicants. The regulator has warned the public to be cautious of fraudulent activities and to only rely on official communications from licensed issuers, as well as to use regulated channels for transactions. Industry insiders anticipate the launch of licensed stablecoins during Hong Kong's fintech week in November.