Unregulated Hong Kong Stablecoins Emerge Ahead of Licensed Launch

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 the first officially approved product. The Hong Kong Monetary Authority stated that tokens bearing the 'HKDAP' and 'HSBC' tickers are being traded, but are not affiliated with any authorized issuer. The two applicants for stablecoin licenses mentioned in related media reports confirmed that they have not released any regulated stablecoins. Earlier this month, the HKMA awarded its inaugural stablecoin licenses under the Stablecoins Ordinance, which became effective in August 2025, selecting two groups out of 36 applicants. The regulator warned the public to be cautious of fraudulent activities, advising them to only rely on official communications from licensed issuers and to conduct transactions through authorized channels. Industry insiders anticipate the launch of licensed stablecoins to coincide with Hong Kong's fintech week in November.