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 new stablecoin framework, even before the launch of the first officially licensed products. The Hong Kong Monetary Authority (HKMA) has stated that tokens with the ‘HKDAP’ and ‘HSBC’ tickers are being traded, but are not affiliated with any authorized issuer. This 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. The choice reflects 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 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 licensed stablecoins to coincide with Hong Kong's fintech week in November.